Real Estate in 2023 is beginning to be reminiscent of 1980. The corporate player with the most to lose influences a precarious market. The Toronto real estate market pretty much operates in lock step with Vancouver and we are now seeing major Toronto developers opting out of the current market. What we are seeing here is almost finished or completed developments competing for a dwindling number of buyers -probably allowing for more flexibility in final pricing as time goes on.
With the present scramble for affordable housing, developers are going to have a hard time fitting that into their lower budgets. Our increased interest rates on top of the hard times caused by a pandemic add to the mix and do not encourage hesitant buyers to take the plunge even as inventories slowly increase.
The Greater Vancouver Real Estate Board reports that “It is noteworthy that the multifamily segment remains more active than the detached segment at this time.”
This is certainly reflected in our local sales statistics for October. Port Moody experienced the highest number of attached sales with a 45% sales ratio average. Pitt Meadows and Port Coquitlam were hot on their heels. We note that the townhomes with more family space are the hot commodity.
The considerably lower number of building permits for detached homes are yet another sign of Canada’s vanishing single family homes. In June the value of permits for detached homes fell 35% from the previous year – near the lowest levels in the early pandemic months. Down the road detached homes could be a rarity – a valuable option! Our municipalities are encouraging laneway housing which would maintain many detached homes while still adding more homes.
This is a market to watch for opportunities, both as buyers and sellers. No two neighbourhood pockets are the same, so you need the local real estate perspective on what is actually happening in your small neck of the woods. Remember – if you are selling in a lower market, you will buy in a similarly low market. And..real estate turns on a dime, often without warning, so let us watch closely for you. If you want to be kept informed and are anticipating a move – even way off, we are happy to give you the straight goods and enable you to make an informed decision of your own choosing.
Remember we were all working in the real estate market in 1980 and other equivalent markets prior – this is not our first rodeo!!
Enjoy the season. We look forward to seeing you out and about and are always happy to have a chat.
We remain your Generations Real Estate Partners:
Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.