August 2022 Founder’s Message
The long, hot days of summer are slowly coming to a close in the lower mainland. Like the seasons, the real estate housing market is entering a new cycle.
Home buyer demand is quieter and we are seeing a gradual increase of homes for sale. As interest rates continue to increase, buyers are carefully considering their options and the frenzy of the past two years is calming down.
As a result, there is a larger selection of homes available and sales are edging downwards. Last month’s sales were 35.2 percent below the 10-year July sales average. The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totaled 1,887 in July 2022, a 43.4 percent decrease from the 3,326 sales recorded in July 2021.
Home buyers are responding to the rising interest rates and inflationary concerns. The Bank of Canada has raised rates four times so far this year, resulting in a higher cost of borrowing and a slowing of the housing market.
The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,207,400, a 10.3 percent increase over July 2021. The benchmark price for a detached home is $2,00,600, up 11 percent from this time last year.
Prices are still up from last year and many home buyers are eager to secure a property before interest rates rise any further. It is an excellent time to allow us to provide you with a complimentary comparative market evaluation of your home so you can understand its true value. Rates are on their way up and a few months can make a difference in meeting your real estate goals.
If you are interested in making your next real estate move but have not wanted to participate in the frenzy of the past two years, now is an ideal time to buy or sell. Although rates are expected to continue to rise throughout the rest of the year, it doesn’t mean prices will drop significantly overnight. Many experts predict home sales will continue to decline in the coming months ahead. Then, modest growth is forecasted beyond the first quarter of 2023.
There are no signs of a drastic downturn in the market, so don’t wait to make your next move. A lot goes into selling your home. Late summer is an ideal time to make necessary repairs and improvements to the exterior of your home. Landscaping and painting projects often require the cooler days of late summer. Preparing your home for sale takes time and the milder temperatures of late August and early September are perfect months to do renovations and repairs. Buyers are eager to get settled into their new homes before the upcoming busy holiday season.
We invite you to visit our display at Horseshoe Bay by Westbank. We have less than 20 homes remaining, starting at $999,000. This resort-style village is Metro Vancouver’s last true waterfront development. Magnificent views of Howe Sound, leading-edge design and first-class amenities highlight this extraordinary project by one of North America’s leading residential developers.
Curb appeal is at its peak until the end of September. Flowers are still in bloom, leaves are on the trees and buyers are able to see what a property looks like at its best. Interest rates have caused prices to level off and move towards a more balanced market as summer draws to an end. However, home prices are still forecasted to end the year higher than 2021. Take the time now to contact one of our highly experienced, knowledgeable advisors. We understand both local and global market trends. Our goal is to empower you to make the best decisions possible.
I hope you enjoy the warm weather of the weeks ahead and you find yourself rested and rejuvenated from our beautiful summer days here on the west coast.