December 2022 Founder’s Message – A Year In Review
The new year will soon be upon us. I would like to take a moment to send a note of gratitude and also reflect upon the past year.
We are grateful for your friendship and business and have enjoyed helping you achieve your real estate goals. It has been a year of historic highs and lows in mortgage interest rates. We have navigated these times together and we all look forward to serving you further in 2023.
This year’s rate increases, and inflationary pressures have caused Metro Vancouver’s real estate market to slow down and move towards a more balanced one. The MLS Home Price index composite benchmark price of a home in the Lower Mainland is currently $1,131,600. This is a 0.6% annual decrease but an increase of 17% in two years. Prices are still above pre-pandemic levels. While prices have decreased since the Bank of Canada began implementing a series of interest rate hikes back in March, it is worth noting there were years of substantial price appreciations during the COVID-19 pandemic.
This past year has seen a return of people focusing once again on purchasing properties closer to the city center. During the pandemic, people wanted extra space as they transitioned to working from home. In 2022, many people have returned to in-person offices.
And, although all Metro Vancouver property types continued to see decreasing benchmark prices compared to last month, they are still higher than pre-pandemic levels. Townhouse benchmark prices have increases by 2.7% this year to $1,027,900. Similarly, condo apartment benchmark prices increased by 3.5% in 2022 to $720,500. Over the past two years, the benchmark price for detached homes has increased by $272,000. Over the past three years, it has increased by $411,000. Active listings at the end of November 2022 were up 28.5% compared to this time last year.
On the home front, VIRANI continued to evolve this year with the October launch of our Rent + Manage division, a one-stop shop to all your real estate needs. Created in response to our clients’ needs, Rent + Manage offers a full spectrum of services. We are now able to handle every occupational and operational detail whether leasing an individual property, purchasing a selection of homes or buying an entire building for an investment portfolio.
This year also saw our involvement in a number of exciting and innovative projects throughout Metro Vancouver. The completion of the architecturally stunning Horseshoe Bay by Westbank has provided homeowners with the opportunity to be a part of Vancouver’s last true waterfront. VIRANI will be the marketing and sales company for West Vancouver’s upcoming Dundarave Beachside project that includes commercial, office and residential space, as well as a new public plaza.
We will also be doing the sales and marketing for Burrard and Davie, the new 47-storey development located at 1177 Burrard Street. This mixed-use project will be home to approximately 260 condo resale homes, 50 rental units, office space, day care and ground floor commercial units.
Inflation peaked in June this year at just over 8%. Since then, it has been slowly decreasing. Experts predict if this downward trend continues, the Bank of Canada will slow its rate increases. Home prices have decreased from the record highs in March 2022, however, it is an ideal time to consider your real estate options.
Experts are forecasting modest decreases in housing prices in the coming year. This could mean a short window of opportunity for potential buyers to take advantage of the quieter market. We are still seeing demand among buyers who waited by the sidelines during the pandemic, so now is also a good time to sell. Buyers have more time and more choice than they did in 2021 when inventory was low.
We are pleased to report that our philanthropic venture Human-Kind helped feed more than 16,000 meals this year to local families struggling with food security. Celebrating kindness and giving back to the community is important to us throughout the entire year.
May the spirit of giving guide your festivities in whatever way you celebrate. Have a wonderful holiday with your family and friends and here’s to a joyous new year!