Metro Vancouver Real Estate Market Update [December 2022]
The real estate market in the Metro Vancouver area is always changing, so you need to stay on top of it if you want to sell your home or buy a new one. From days on market to benchmark prices to the number of listings, there's a lot of information to get through, so we want to do the heavy lifting for you. Here is everything you need to know about the real estate market this month.
Because of the interest rates, the market does continue to slow. This is also typical this time of year with the holidays, and people are too busy having fun….
But for those of you still interested: now may be a great time to capitalize on the slowdown! Let us let you in on a little secret—yes, it is slower, homes tend to look a bit darker, and yes, most people are too busy. However, most people still making moves in winter are the serious ones. And if you’re reading this, you may be among those serious buyers.
Let us get into the details so you can see why there are more opportunities than you think right now—backed up by some cold, hard facts.
November 2022 Market Stats
- Inventory: 1,840 (8.5% decrease from October 2022, 86% increase from November 2021)
- Sales: 269 (7.2% decrease from October 2022, 62.3% decrease from November 2021)
- Benchmark Price: $1,404,900 (2.2% decrease from October 2022, 6.3% decrease from November 2021)
- Inventory: 909 (5.1% decrease from October 2022, 145.7% increase from November 2021)
- Sales: 189 (23.2% decrease from October 2022, 56.7% decrease from November 2021)
- Benchmark Price: $799,400 (1.3% decrease from October 2022, 3.3% increase from November 2021)
Apartments & Condos
- Inventory: 1,202 (5.2% decrease from October 2022, 86.9% increase from November 2021)
- Sales: 273 (1.8% decrease from October 2022, 55% decrease from November 2021)
- Benchmark Price: $518,400 (1.8% decrease from October 2022, 5.2% increase from November 2021)
All information & statistics were received from the Fraser Valley Real Estate Board Statistics Package.
Our Observations from November 2022
Sales are down 7% from October, and new listings are slow to stream. However, the available listings are selling faster, evidence that the opportunities are present when marketed well.
There were fewer listings than last month and about half of what was available last year, but things are selling quickly. Condos in 27 days, townhomes in 28, and detached in 34 days on average.
Detached homes are down 2% month-over-month. Price is also down compared to last year. Townhomes are down 1% month-over-month but still up compared to last year. Condos are down 2% month-over-month but again still up 5% year-over-year. This shows the demand for the lower-priced home categories.
The active listing ratio trend continues, with detached homes being a balanced market while it’s a seller's market for townhomes and condos. Due to the demand for lower-priced homes, people have been priced out of the more expensive detached homes due to rising interest rates. While fewer listings are available, the buyers out there are serious, as evidenced by the quick turnover we are seeing. So now is undoubtedly an excellent time to sell, particularly for condos and townhomes.
What This Means for Buyers
It's a great time to shop for detached homes, but that's not to say you can't find a good deal in townhomes and condos. Less activity will mean less competition, allowing you have more choices.
Yes, the market is different. But there is an opportunity in every market. The only difference now is you need the right strategy, marketing, and expert alongside you so you can make the right decision for you.
To get the right strategy, marketing, and expertise, give us a call at 604-507-0200 or visit us online.
Previous Months' Metro Vancouver Real Estate Market Updates
The Fraser Valley real estate market experienced some surprising changes in October 2022, and the data may seem complicated at first glance.
Inventory is down, sales are up (slightly), and benchmark prices are down in some categories while up in others, month over month. Of course, with interest rates up again this month, it has become harder to borrow money. This has had the expected effect of slowing sales and dropping prices in general as the Bank of Canada attempts to control the market from the frenzy last year.
Let's dive deeper into statistics and discuss what this all means for buyers and sellers in the Vancouver area.
October 2022 Market Stats
- Inventory: 2,011 (4.9% decrease from September 2022, 75.2% increase from October 2021)
- Sales: 290 (1.8% increase from September 2022, 58.5% decrease from October 2021)
- Benchmark Price: $1,436,000 (1.8% decrease from September 2022, 0.8% decrease from October 2021)
- Inventory: 958 (11% decrease from September 2022, 136.5% increase from October 2021)
- Sales: 246 (4.2% increase from September 2022, 51.3% decrease from October 2021)
- Benchmark Price: $809,800 (1.5% decrease from September 2022, 7.7% increase from October 2021)
- Inventory: 1,268 (0.4% increase from September 2022, 64.5% increase from October 2021)
- Sales: 278 (0.7% decrease from September 2022, 50% decrease from October 2021)
- Benchmark Price: $527,900 (11.5% increase from September 2022, 0.5% decrease from October 2021)
All information & statistics were received from the Fraser Valley Real Estate Board Statistics Package.
Our Observations from October 2022
As complicated as this may all seem, it is good news in general. With the sales-to-active listing ratio at 16% last month, we are back to a balanced market for the fifth straight month. This comes as a relief to many after an intense seller's market through last year.
That said, looking at individual house categories becomes more nuanced.
For detached homes, the benchmark price was down 1.8% compared to last month. This puts the benchmark price at almost the same level this time last year, down slightly from a high earlier this year. Sales were up slightly month over month. And the sales-to-active listing ratio for detached homes is slightly lower than average at 14%. All of this points to the market having stabilized for detached homes, with very little change overall since last month.
For townhomes, the benchmark price is also down again by 1.5%. That still puts it higher than the price last year's price by almost 8%. Considering the sales-to-active listing ratio of 26% for townhomes in the Fraser Valley, you can see that there is still a significant demand for these homes, bucking the trend and making it a seller's market.
What does this mean for you? Well, now is a good time for both buyers and sellers. Prices are dropping slightly due to the higher interest rates. However, sales are up month over month, as more people look to townhomes as an affordable alternative to single-family homes.
Balance is the name of the game with condos! The benchmark price was down every so slightly month over month but still up by 11% compared to last year. Sales are also very similar to last month, as is the number of listings available. All this keeps the sales to active listing ratio relatively high at 22%, showing the demand for condos remains, being the most affordable of all home types.
With sales continuing to lag and new inventory slow coming on the market, we're seeing a holding pattern from buyers and sellers. Interest rates are at their highest levels since 2006, so, understandably, buyers and sellers are hesitant. This is where a great realtor can help you educate yourself on what is the best move for you.
The higher interest rates have made borrowing more expensive. This continues to slow the market for detached homes in particular. However, townhomes and condos still maintain good activity, with more people looking to these options to facilitate their needs.
Looking at a neighbourhood-by-neighbourhood level, there are specific pockets for which certain property types are performing well for both buyers and sellers. Take the Cloverdale neighbourhood, for example. Townhomes and condos have a sales-to-active listing ratio of 41%! So if you're looking to sell in Cloverdale, now might be the time. And for buyers, you have great opportunities in Surrey where detached homes are selling 9% below the asking price on average. Ready to scoop up a deal?
Need more guidance on real estate statistics in the Surrey area? Well, if you're buying, selling, or just trying to understand all this a little better, we're here to help. We offer a complimentary real estate consultation to help educate you on when and where the best move for you is. Don't wait; reach out today!
This is surprising, and the numbers don't lie! Despite the increasing interest rates and the declining sales we saw in July and the months leading up to it, August had an increase in home sales. With the negative news we've had recently, there was a lull where consumers have taken in the information to understand how it affects them. However, that lull seems to be coming to an end as we see buyers making confident decisions regarding market trends and both current and historical data.
August 2022 Market Stats:
- Overall sales are up 2.4% (month over month), meaning more homes sold in August than in July.
- The number of active listings is down by 8.5% (month over month), meaning fewer homes sold in August.
- New listings are down by 14.3% (month over month), which means fewer new listings came onto the market in August.
- Benchmark prices are down 2.1–5.1%, depending on property type (month over month), meaning the overall price of a typical home in Fraser Valley went down.
- Sales-to-active-listing ratio was 17%, up from 15% in July—this means that 17 out of every 100 homes sold last month, and we are in a balanced market.
Our In-House Observations in August 2022
We are entering the fall market, typically the second busiest season for real estate. With school back in session, family summer vacations complete, and childcare finalized, we are getting back into a routine as a community. Based on experience, market activities tend to pick up, which we can already see.
Here is what we observed during August:
- Market activity is picking up. We have received more inbound calls, set up more buyer and seller consultation appointments, and written and presented more offers.
- Offers are being accepted quickly, so buyers must act quickly to ensure they can see all the homes they're interested in.
- It's becoming more common for sellers to receive more than one offer on their homes.
- Sellers who previously didn't have luck selling their homes are calling our team for help.
- We have helped sellers get a maximum return on their properties with our optimal pricing, negotiating, and marketing strategies.
Even active REALTORS® outside our team are asking us to list and market their homes. Katrina & The Team have unmatched skills, expertise, knowledge, experience, and proven results from hard work. With Katrina & The Team, you can expect more because we deliver more! If you are thinking about buying, selling, or have any questions about the market and how it relates to your specific needs, or your specific property in your specific neighbourhood, give us a call at (604) 507-0200 or use our contact form to drop us a line.
It isn't surprising that with the recent interest rate increases, July is the fourth month in a row where sales have declined. Rising interest rates and inflation have made average consumers uncertain. However, those who understand economics and market data are still making confident and sound decisions to capitalize in today's real estate market, and statistics show that real estate has always been a safe long-term investment.
So is now a good time to buy or sell your home? Here's what we've observed in the month of July.
July 2022 Market Stats
- The number of sales is down 22.5% month over month and down by 39% year to date, year over year.
- The number of active listings is down by 0.9% month over month. This number was climbing month after month and now has stabilized.
- Benchmark prices are down 2–3.5% depending on property type month-over-month; however, they are up 17.8–22.7% year over year.
- Sales-to-active-listing ratio is 15%, a balanced market.
Our In-House Observations in July
- Sellers, buyers, and real estate agents have uncertainties due to the lack of resources, knowledge, and facts.
- Real estate agents outside our team are asking us to list and market their own homes.
- Multiple offers still exist. However, not at the level compared to early this year. Location, optimal pricing, marketing, property type, and price bracket significantly affect how many offers a property receives.
- Educated and well-informed sellers are taking advantage of our optimal pricing, negotiation, and marketing strategies to sell their homes for maximum return. They are netting more than their competition.
The buyers and investors who educate themselves are also capitalizing on opportunities. They understand the impact of interest rates, monthly payments, rental rates, and market data, both current and historical. They know the peaks and slight valleys before a new rise in the Real Estate cycle and the upward historical trend in value.
Planning to Buy or Sell Property?
When you take the time to prepare yourself and learn the facts, you make it easier to see the winning opportunities in real estate. While many people know someone who got "lucky" in real estate investing, calling it luck is inaccurate. What most people recognize as luck is just an opportunity met with the right preparation.
If you want to invest in real estate, one of the first things you can do is remove the uncertainties you have surrounding the topic. Remove the uncertainties by talking with an expert real estate agent who can go over current and historical market data with you. Remove uncertainties with knowledge and facts. When you understand market behaviours, you can make an informed, educated, and confident decision.
Sell Your Home With Katrina & The Team
Katrina & The Team have unmatched skills, expertise, knowledge, and experience from hard work helping our clients and community.
With Katrina & The Team, you can expect more because we deliver more! If you're thinking of buying, selling, or have any questions about the market and how it relates to your specific needs, a specific property, or a specific neighbourhood, visit us online or call us at (604) 507-0200.