April Founder’s Message – Spring is in Full Swing
As we head into the warmer days of spring, Metro Vancouver continues to be in a strong seller’s market. Home sale activity in the housing market remains elevated, yet it is happening at a calmer pace than last spring’s record-breaking season.
We are still seeing price increases in all types of housing across the Lower Mainland. Lack of supply is fueling these price hikes. Real Estate Board of Greater Vancouver Chair Daniel John says the number of houses listed for sale on our MLS system today is less than half of what’s needed to shift the market into balanced territory.
With this in mind, now is an excellent time to sell as we continue to see higher prices and multiple offers. The Benchmark Price of a single family detached home in Metro Vancouver is $2,118,600. This is up 23.4% from March 2021 and a 3.6% increase from February 2022. Last month’s sales were 25.5% above the 10-year March sales average. There are many great opportunities in all markets, so now is an ideal time to meet with one of our highly experienced VIRANI advisors to diversify and spring clean your real estate portfolio. We are here to provide you with expert advice and help you achieve your real estate goals.
VIRANI is currently working on the sales and marketing of many luxury developments in both downtown Vancouver and the North Shore. These spectacular new homes are coming soon so we invite you to speak to one of our advisors to be first to receive the best opportunities. Interest rates remain low, despite recent increases. Home buyer demand is extremely strong as people rush to buy before their locked-in rates expire and interest rates rise further. Now is a great time to move up, purchase an investment property or enter the market. If you require assistance with your mortgage, we can recommend you to one of our expert service advisors.
On an interesting side note, real estate has recently expanded into the metaverse, the virtual reality world, where investors are paying real money for virtual land parcels. In the past year, virtual property prices have soared. Already, some virtual worlds are just as expensive as a real-world house. In 2021, sales of real estate in the metaverse topped $500 million. According to investors and analytic firms, sales could soon double. Many brands want to secure land parcels they anticipate will be popular in the same way they buy advertising space on popular websites. Companies are buying into the metaverse in hopes it will bring them new clients.
In the Lower Mainland, the ongoing housing shortage supply and upcoming interest rate hikes continue to put pressure on home prices. Brendon Ogmundson, senior economist for the British Columbia Real Estate Association, says it is going to take a long time to get into a surplus situation where prices will start to fall.
In the months ahead, sales activity across Metro Vancouver is expected to remain high as buyers outnumber sellers in a rising interest rate market. We look forward to working with you. Collaboration is the key to achieving your real estate goals. Please give me a call if you have any questions. We are here to provide you with expert advice in all markets.