Newsletter

Happy Fall…or is it still summer? Our weather seems hesitant to move into Autumn except for the beautiful tree colours. Our real estate market is showing the same hesitancy – not the usual Fall buzz with the next time line to meet as a buyer or seller being Christmas. It is in part the wait and see game overwhelming the let’s make a move now.

Lowest local September stats were in Maple Ridge showing only 1.1 in 10 detached homes selling and 2.7 in 10 attached homes. Both markets have steeply increasing inventories. The Port Moody and Burnaby detached markets were also struggling with 1.7 in 10 and 1.8 in 10 homes selling last month. Highest sale results were in the Burnaby and Port Coquitlam attached markets (8 in 10 & 4.3 in 10 homes selling respectively). Clearly affordability continues to make town homes and condos the attractive choices. Most of our local markets are showing rising inventories which should be beneficial to buyers this month.

What do our team boots on the ground tell us about our neighbourhood markets?The usual upsize buyers are stymied by the interest rates in not qualifying for more funds. This makes the difference in both sales and purchases. When we look at the history of interest rates which we have all worked through, we have to come to grips with the fact that these interest rates could be with us to stay and we shall have to adjust, just as in the past. Very fortunately borrowers had to pass the mandatory stress test and qualify at a higher rate than the one in place at the time – a small buffer which could prove practical now. Yes – our local markets are quiet, with the odd surprise of a well priced detached home generating multiple offers!

As a team we are so grateful for the loyalty factor – our clients returning to us for their next move, sending their family to us for their first purchase and recommending us to their friends. Sincere thanks to you all – you make our job a pleasure and the reason we are still here!! And…always happy to answer your questions and be of help.

We remain your Generations Real Estate Partners:

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

GVR September Snapstats

FVR September Snapstats

As summer winds down the statistics tell a story of cooling price gains and slower sales, but very typical for this time of year. Yes we can point to the interest rate hikes in part, but there was also an overwhelming penchant for summer holidays and a little real estate fatigue. The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totaled 2,296 in August 2023, a 21.4 per cent increase from the 1,892 sales recorded in August 2022. This was 13.8 per cent below the 10-year seasonal average (2,663).

“It’s been an interesting spring and summer market, to say the least. Borrowing costs are fluctuating around the highest levels we’ve seen in over ten years, yet Metro Vancouver’s housing market bucked many pundits’ predictions of a major slowdown, instead posting relatively strong sales numbers and year-to-date price gains north of eight per cent, regardless of home type.” said Andrew Lis, REBGV director of economics and data analytics

There were 3,943 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in August 2023. This represents an 18.1 per cent increase compared to the 3,340 homes listed in August 2022. This was 5.3 per cent below the 10-year seasonal average (4,164).

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,082, a 0.2 per cent decrease compared to August 2022 (10,099). This was 13.4 per cent below the 10-year seasonal average (11,647).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for August 2023 is 23.9 per cent. By property type, the ratio is 14.2 per cent for detached homes, 30.3 per cent for townhomes, and 31.9 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

While we generally experience a summer slowdown, September is traditionally a month of back to work/school and also new FOR SALE signs! With the supply of housing still historically low, we are curious to see what this month brings. An interest rate hold without a spike in new inventory could lead to another challenging Fall market.

We remain your Generations Real Estate Partners and are always happy to hear from you with any of your real estate questions. Remember to slow down for the kids walking to school and give yourself lots of time with the increased traffic.

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

August Greater Vancouver Snapstats

August Fraser Valley Snapstats

The above was a favourite quote from our favourite business coach, Keith Cornies. We think of it now as we are all caught in the waves of rising interest rates, still rising real estate prices (in some spots), and rising costs of all our basic purchases. However, our market stats defy the stormy seas as The Real Estate Board of Greater Vancouver reports: “Home Prices across all home types in Metro Vancouver rose again in July, as strong sales figures continue to push up against low levels of housing inventory in the region.” While our mortgage rates are the highest for 10 years, the July sales activity beat the levels for the same time last year. Attached home sales in the region showed a 53.3% increase compared to the July 2022 attached sales.

However, Metro Vancouver covers a lot of ground and the statistics are an average across a large region. What we are seeing in the markets from New Westminster going east to Maple Ridge are mostly stagnant or dropping inventories – making for a return to competing bids in those locations. Only 3 markets differ – New Westminster attached market is showing a distinct increase in inventory as is Pitt Meadows detached market. Port Moody detached market showed an interesting sharp rise in inventory towards the end of April through to mid June followed by a steady decline. And of course while we surprisingly still have willing , qualified buyers, inventory numbers are the key to price and competition.

Boots on the ground tell us that while the residential real estate market has slowed down, making for fewer multiple bid situations, it is still strong and a well maintained and/or renovated home in a location close to amenities and schools is still holding its attraction and value. Townhomes and condos continue to ride the waves of success with some of the highest sales ratio averages: Port Coquitlam and Port Moody attached markets show 6.6 homes in 10 selling and 6.5 in 10, respectively, while Pitt Meadows is not far behind with 6.1 in 10 selling. The others? A long way behind.

I don’t know any soothsayers who saw this exact scenario coming in their crystal balls, but now it is here, buyers and sellers must take advantage of the moment, or decide that this is not the appropriate moment for them. The only way to do this safely is to get the current story on your home – what is going on in your immediate neighbourhood. We are happy to be the story tellers, after hearing your concerns and plans. And to be you your consultants on how to go about the process and how you can maximize the value in your home. Despite the interest rates, inflation etc, it is always the right moment for someone – specially when buying and selling in the same market. Our downsizers are currently the good sailors – they got on board!

We remain your Generations Real Estate Partners wishing you a happy, safe summer, good local and far off travels along with real relaxation.

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

July 2023 Greater Vancouver Stats

July 2023 Fraser Valley Stats