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Summer came late, then seemed to vanish overnight and we suddenly find ourselves in winter! Our real estate market has not been nearly so surprising given the rapidly rising interest rates, constant reference to inflation and the mention of the possibility of a recession. All of these factors create fear in both potential buyers and sellers – the fear of no longer qualifying for a mortgage at current rates being justified. As the Bank of Canada ( and not us !) is in control of the above, our hopes are pinned on a growing inventory, which, combined with slowly dropping sale prices, would bring balance to our market.

Locally (that is from New Westminster through Burnaby heading east through the Tri Cities to Pitt Meadows and Maple Ridge) we cannot share Metro Vancouver’s current optimism with regard to inventory. Most of our markets are showing an actual drop in inventory – sometimes a sharp drop. Pitt Meadows detached market, Maple Ridge attached category & Burnaby condos & townhomes are the only markets showing even a very slight inventory increase.
The only markets selling more than 3homes in every 10 listed are Coquitlam attached (3.9 in 10), Port Coquitlam attached (3.6 in 10), Port Coquitlam detached ( 3.5 in 10) and Port Moody attached (3.3 in 10). The recent Census confirmed that there are more families than ever before living in townhomes and condominiums.

The statistics which don’t show in the Greater Vancouver Real Estate Board report or in our Snap Stats are the sale of the many brand new buildings. We see how they are progressing by watching what developers are offering to attract buyers – we have seen the anticipated incentives and price changes along with one building even offering one year free maintenance payments. So…despite low inventory, sales of brand new condos are still not as brisk as would have been anticipated at the start of the project. Future new condo sales will greatly influence our overall market values as time goes by & interest rates continue on an upward trajectory.

For those of you who purchased over the past year and are feeling some remorse, remember 2 things – firstly, you gained on the interest rates which have a much greater affect on your monthly payments than price. Secondly, as long as you hang on to your home, it will be a good investment – lots of history there and we have lived and worked through it! For those of you looking to make a purchase, remember to nail down your financing – a pre approval with a guaranteed interest rate for 90 days gives you clear guidelines and an edge when it comes to making an offer. Our job satisfaction comes from happy clients, so we love to tailor a plan specifically for a client (buying or selling) which results in happiness all round! We are delighted to answer your real estate questions and are just a phone call away.

Enjoy the season. We remain your partners in real estate:
Generations Real Estate Partners: Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.

While the Real Estate Board of Greater Vancouver reported “more home sellers and fewer buyers in September” and that “inventory is beginning to accumulate, providing buyers with more selection compared to last year”, this is not the picture in most of our local markets this side of Vancouver. Reviewing our stats tells a story of only 2 markets with a significant growth in last month’s inventory – Port Coquitlam and Pitt Meadows townhome and condo categories, with the detached Maple Ridge inventory showing the only other increase, which was very slight.  So…here buyers are not gifted with the kind of hoped for choices, but sometimes an announcement like this, which clearly describes the case in other parts of the Greater Vancouver market, can prove to be a self fulfilling prophecy!

Port Moody’s attached market and Pitt Meadows detached market led the pack when it came to sales to listings ratio.  Port Moody sold 4.3 in every 10 homes listed, while Pitt Meadows increased its detached sales with 3.8 in 10 homes selling.  Maple Ridge attached category also scored a healthy 3.4 in 10 homes selling. Slowest September sales were in the Port Moody detached market at a selling rate of 2 in 10 homes. 

It seems that both buyers and sellers are cautiously watching the market and trying to ascertain the best time to jump in.  This is a complicated question because, as prices edge downwards, interest rates are rising much more aggressively.  With mortgage approval now being less predictable and monthly payments exceeding projected budgets, we are losing potential buyers from the equation.  We always say “buy and sell in the same market” and now even this is hard to predict except to say that if you sell first, even a market just “edging down” would be advantageous, especially if you got yourself a secure approval with a guaranteed interest rate for 3 months.

These are just some of our thoughts and the great thing about our business is that every client has different circumstances and needs.  Our in person or virtual get togethers can establish your wants and needs and jointly put together a personalized plan which will work in those particular circumstances.  We are here and happy to talk to you whenever you start thinking about a move – however close or distant in time.  Here’s to a real balanced future market!

Thanksgiving came and went, but we still want to express our gratitude to all our friendly, caring clients. Our team really appreciates you, your family and friends.

We remain the Generations Real Estate Partners,

Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis

Happy Fall – a glorious transition time between summer and winter – a bit like our real estate market not so gloriously transitioning from the hottest market on record to a slow down in both sales and prices.  What appears as a bonus to buyers is a mirage when taking into account rampant inflation and rapidly rising interest rates. 

In their latest report the Real Estate Board of Greater Vancouver, Andrew Lis (Board director, economics & data analytics) stated “Home buyers and sellers are taking more time to assess what this changing landscape means for their housing needs.  Preparation is critical in today’s market.”  We concur – this is not the time to wing it – there are lots of moving pieces right now.  Our team can help with that big picture thinking so that all the objectives and risks can be balanced and a practical decision can be reached – not always the one you had in mind these days!

Overall the August sale of detached homes in the Lower Mainland slipped by 2.3% since July, but was a 7.9% increase from August 2021.  Similarly August apartment sales dipped by 2% compared to the previous month, and experienced an 8.7% increase over the same month last year. The biggest year over year increase was 8.7% in the townhome category, but with a 2.5% decrease compared to July this year. So….this has not been the doom & gloom predicted and August is a big holiday month.  The real story will unfold over the next while as children are back at school and home owners assess their housing situation and perhaps create a larger inventory, and buyers are emboldened with less chance of competition.

In the meantime close to home….. 

The Port Coquitlam attached market (townhomes) had by far the largest sales ratio in our extended market area – with 5.7 in 10 homes selling and a rapidly dropping inventory.  The detached market in Port Coquitlam was among the best selling with 3.6 in 10 homes selling – one of only 5 markets (other 4 being townhome markets) more than the 3 in 10 sales ratio.  Port Coquitlam has managed the amazing feat of creating and building an awesome community centre OVER COVID – it is a forward thinking small town attracting young families.

The other detached markets west to east are all in sales ratios from 1 in 10 selling (Port Moody) to 1.7 in 10 in Maple Ridge.  Interestingly these markets all have dropping inventories.  

So….townhomes are the category of choice at present – appealing to both young families and downsizers who still want space not afforded by an apartment.

The months of September and October will tell the tale and we are watching the neighbourhood by neighbourhood details closely so that we can keep you covered as always.  

Enjoy the changing season and the last warm rays of Fall. 

Best wishes from our team – Generations Real Estate Partners,

Michelle Hawthorne, Scott Johnson, Shane Goutsis, Ray Harris and Sheila Francis.

You are probably feeling the worry lately with increasing rates, and overall increase of living expenses.  You are certainly not alone.

When it comes to mortgages – which I have been arranging for over 15 years, I have seen a huge variance in rates over the years.  Up until recently we have been incredibly spoiled with what I called practically “free money”.  Both fixed rates and the variable products have been at some of the lowest rates in history.   But did you know when you were approved for your mortgage, there was a stress test in place?  For example – if you had a variable rate mortgage, you were approved at the Bank of Canada’s posted 5-year rate which was 5.25%?    If you were in a fixed rate, you were approved at 2% higher than your actual rate or 5.25%, whichever was higher.    This was done with all financial institutions to ensure that should rates rise, you would be able to weather the storm. 

Just as our weather is predictably unpredictable, so too is our real estate market.
When we think we have a handle on it, lo and behold the market throws us a curveball! Right now that curveball is inventory. In its analysis of the July market, the Real Estate Board of Greater Vancouver reports “a gradual rise in supply”, but when we drill down our local market stats, we find that in all except 2 of our markets (Port Moody detached & Port Coquitlam attached) our inventory has either decreased or flat lined.

As the song says “What goes up must come down” and the long history of real estate in the Lower Mainland supports that. So…how come it’s a shock? Could be that if a buyer bought within the last decade, a rising market is the norm and if a realtor got their licence in the same time frame, same expectation.
Our current situation where residential sales in Metro Vancouver decreased by 35% in June compared to the same month last year, has significantly changed the real estate landscape. The Fraser Valley Current actually put a dollar figure on the loss of value in just 2 months of the average Abbotsford single family home – $100,000!

This is the moment where we realize the value of ‘Snap Stats’ in breaking down the data as it applies to different municipalities and areas. The latest report from the Greater Vancouver Real Estate Board covering the May sales for the entire region has the headline: ‘Spring ushers in calmer housing market trends in Metro Vancouver’.
Whereas, when we review the stats from Burnaby east to Maple Ridge, we see a uniform pretty steep incline in inventory along with a noticeable decline in activity. Where sales in Pitt Meadows and Maple Ridge have been booming during the previous months, May was a very different story. Detached Maple Ridge stats show only 2.7 in 10 detached homes selling and 4.4 in 10 attached homes. Going back to the eastern most Burnaby location, the story is very similar. Coquitlam and Port Coquitlam townhomes and apartments were the standouts with brisk sales – 5.1 in 10 and 6.2 in ten homes selling.

As our Spring weather cools instead of warming up, it mirrors our real estate market. The Greater Vancouver Real Estate Board reported that overall, home buyer demand in Metro Vancouver had returned to “more historically typical levels” in April. Residential home sales for April 2022 showed a 34.1 percent decrease from April last year. Despite the previously overheated market, last month’s sales were only 1.5 percent above the 10 year April sales average. We have to remember that Spring is typically busy regardless of market conditions.
We are still down in inventory which continues to cause some competition between buyers in certain spots and price ranges.
As our provincial government prepares to put in place new measures to slow down the market, natural forces are at work doing exactly that. A clear case of closing the barn door after the horse has bolted!!

From the local perspective, there are subtle shifts in the market – this is no longer a market where every home, regardless of flaws in location and upkeep, sells quickly for an over-list price! Daniel John, newly minted chair of Greater Vancouver Real Estate Board, explained that market activity was at “a calmer pace than we experienced 12 months ago” , but last month’s sales still exceeded the 10 year March sales average by 25.5%.
Under-supply continues to be an influential issue with a current inventory at less than half of what is needed to create a balanced market. As interest rates rise, we may anticipate a short rush from buyers with pre-approved mortgages locked in at a lower rate. Beyond that we need to watch the housing supply and interest rates as both will dictate the immediate future of our market.

Our nearby local markets are showing a continued strong attached market where sales exceed the number of listed homes, demonstrating the positive effect of new builds. The small Pitt Meadows market leads the pack with 16.7 attached homes selling for every 10 listed. New Westminster and Port Coquitlam are both selling 13.1 units for every 10 listed.

Real Estate Board of Greater Vancouver Chair, Taylor Biggar gave the perfect summary of our February real estate market when he said:- “Despite having a higher volume of people listing their homes for sale in February, the region’s housing market remains sufficiently undersupplied, which has been pushing home prices to new highs month after month”.

In all the market areas we serve, we can see a small upward trend in listing inventory, but nowhere nearly enough to satisfy the ongoing demand. Overall sales recorded last month were 26.9 per cent above the 10 year February sales average.