What does the Real Estate market look like now in Great Vancouver Area?

EDMUND YANG


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Updated on Sep 28 2022


Lots friends are asking me what the real estate market is like now. They are reading all sort of news on the social media. Here is the statistics from the real estate board. Just wanna provide you with a perspective.


For Fraser Valley area:


MLS® HPI Benchmark Price Activity


Single Family Detached: At $1,513,500, the Benchmark price for an FVREB single-family detached home decreased 5.1 per cent compared to July 2022 and increased 9.8 per cent compared to August 2021.


Townhomes: At $841,900, the Benchmark price for an FVREB townhome decreased 3.9 per cent compared to July 2022 and increased 16.1 per cent compared to August 2021.


Apartments: At $542,000 the Benchmark price for an FVREB apartment/condo decreased 2.1 per cent compared to July 2022 and increased 18.4 per cent compared to August 2021.


For the Metro Vancouver area, I will just provide single detached home stats summary:


Attached home sales in August 2022 totalled 355, a 38.4 per cent decrease compared to the 576 sales in August 2021. The benchmark price of an attached home is $1,069,100. This represents a 12.7 per cent increase from August 2021 and a 2.5 per cent decrease compared to July 2022.


The market for both markets are similar in many ways. The home sold price has come down since couple months ago mostly attributed to the rise of the interest rate. But the home price hasn't dropped below last year's price yet. (still more expensive than last year same time) If you ask me will the market crash, I would say no at this point. More corrections yes but the demand is still strong. The Greater Vancouver market is a strange one. Sometimes the stats don't comply with most other cities in Canada. (similar to the GTA area)


In the mean time, we can still expect two things. One, a group of buyers who had their mortgages approved with a lower rate that would need to buy asap. (along with the buyers who need to buy for personal use/reasons) Secondly, investors are holding off for a better deal. One year GIC's from the banks are offering more than 4.25% of interest. Investors are having second thoughts when buying a investment properties only gives you around 2% to 3% ROI's. (for more than $1M one year term deposits, you are able to get over 5% interest with minimal risk).

For this reason, many buyers are holding off. Of course situation is different in different price segments. ie. High price luxury properties are very slow now. while $400k condos are still very popular because of affordability.


One note to be aware: "Pre-sales"......

Please understand the risk involves with buying Pre-sales. Make sure your financial situation will be adequate upon completion time. No one knows what will happen tomorrow not to mention in about 2 to 3 years from now. We had buyers lost their 20% deposits because their financial situation changed after 2 years and couldn't complete the sale anymore! Please think and plan. Real estate has its ups and downs....I repeat..."ups....and DOWNS".... It's your hard earned cash!


What I would say is that: don't easily believe what are available on the internet. Each market area is different. News titles are to grab your attention and are not accurate as per different scenarios. Find accurate information from a professional in real estate or financial industry for reference; NOT on social media or internet. Well explained information can help you make better decisions.


All the best.


Sources:


http://news.fvreb.bc.ca/member-updates/fvreb-market-data-august-2022/


https://members.rebgv.org/news/REBGV-Stats-Pkg-Aug-2022.pdf


“Copyright belongs to Future Real Estate Group. Sharing is welcomed without authorization, but please indicate the source". Thank you so much for paying attention to Future Real Estate Group.

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