No, we didn’t need a crystal ball to forecast the January real estate sales! Considering the fact that February 2022 proved to be the last of the frenetic, competitive sales, a year on from that, with rapidly increased borrowing costs, higher cost of living and a doom & gloom forecast mentioning the R word, what on earth could we expect? Not the only reason – but often we also create our own self fulfilling prophecy!
Even though we have such a low inventory, the Real Estate Board of Greater Vancouver reports that “Home Sales decline below long term averages” and that the region’s sales show a 55.3% decrease from the sales recorded in January last year – lowest in recent history – all still predictable given the current financial climate.
How do our local numbers stack us vis a vis the entire region? Actually, WE BEAT THE ODDS!! Regionally last month’s sales to active listings ratio were at 13.7%, while locally from Burnaby, New Westminster east to Maple Ridge, in all markets (detached and attached) except for two, our sales ratio average ranged from a low of 17% to highs of 29, 30, 32, 40% (Pitt Meadows detached). Also noteworthy was an almost common denominator in our local markets of rising inventories, so that those buyers who can qualify to buy a home have more choice.
Always when outside entities and influences affect the real estate market, there are UNINTENDED CONSEQUENCES. We shall find out what some of those are as homeowners face a mortgage renewal at significantly higher rates than their previous mortgage. We can help by referring you to an expert more able to suggest alternative solutions and tailor those to your particular circumstances. Don’t hesitate to call us for help when you need it – we have been down this road before and know it hurts.
The other advice we’d like to give all our clients and friends is to make sure that you have TITLE INSURANCE – this following a successful spate of fraudsters in Ontario selling real owners’ homes by means of successfully using new sophisticated technology to produce perfect copies of owners’ identity documents – passports, drivers licences etc. If you need more information on how the insurance can help, please call us. We don’t want this to happen to any of us.
If we want a read on what is happening outside of all of the above, let us watch the brand new condo market and remember that most of those developers cannot afford to keep all those condos empty and unsold ad infinitum. There is lots of competition in the new condo market with more buildings still coming up for completion. There will be deals as developers test the market to find out the magic price at which their product will sell. Looking at eastern Canada, the writing is already on the wall as one developer reduces the asking price by $100,000. Yes, they will be the guys who set the tone for the rest of the market. Not a new concept – remember 2008!
This moment in time makes us grateful for the decades of real estate experience we have as your real estate partners so that we are able to help you navigate these ever evolving circumstances. Please don’t hesitate to tap into that – we are always ready to listen and help. We are also truly grateful for the trust you have placed in us both recently and in the past – our clients ALWAYS come first.
Remember that tough times don’t last, but tough teams do!
We remain your Generations Real Estate Partners:-
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.