The cooler, picturesque days of early autumn are upon us. The trees are beginning to change and so is our real estate market. Metro Vancouver’s housing market is experiencing a quieter season as buyers and sellers adjust to the new interest rate climate.
The Real Estate Board of Greater Vancouver reported that last month’s sales were 29.2 percent below the 10-year August sales average. Similarly, last month’s sales also decreased 40.7 percent compared with August 2021.
Prices are also coming down, yet they are still higher than this time last year. The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,180,500, up 7.4% compared to August 2021, but down 2.3 % from July 2022.
Prices and sales are decreasing in the Lower Mainland as interest rates continue to rise. These increases, along with inflationary pressure, have caused a slowing of the real estate market. The Central Bank of Canada recently hiked its benchmark interest rate by another 0.75 percent, making it the fifth increase this year. Home sales across Canada are down 24 percent from this time in 2021. We are now seeing the impact these hikes are having on both our local and Canadian real estate markets.
The market is cooling, but it is still an excellent time to consider your options, whether you are buying, selling or investing. With a slow-down in the frenzy of the past two years, buyers are now able to take more time when considering their purchases. The British Columbia Real Estate Association predicts the downturn is unlikely to be long-lived as B.C.’s strong population growth means there will be no shortage of demand for housing in our province.
There are many innovative developments on the horizon. We’re excited to be involved with the new Dundarave Beachside project located at the southwest half of the 2400 block in West Vancouver. Virani will be the marketing and sales company for this three-storey development that will be home to 12,000 square feet of commercial space, 10,000 square feet of office space and 55 strata homes. A new public plaza at Marine and 25th is also included in this mixed-use development, which will help bring housing diversity to West Vancouver. Register here to be the first to see these new homes. Link to register
We would also like to invite you to visit our display at Horseshoe Bay by Westbank. There are less than 20 homes remaining, starting at $888,000, in Metro Vancouver’s last true waterfront development. This extraordinary resort-style village features spectacular views, leading-edge design and first-class amenities.
Metro Vancouver’s housing market is cooling since the red-hot sales of the past two pandemic years. The cost of borrowing is up. With that said, the market is still active. It’s an excellent time to consider your next move, whether buying or selling. There are currently also many great investment opportunities. Virani offers some of the finest homes in Vancouver and beyond. We invite you to contact one of our highly knowledgeable advisors today to receive a complimentary comparative market evaluation of your home.
I would like to take a moment to reflect upon the remarkable life of Queen Elizabeth II, the longest running monarch in British history. She witnessed enormous social change since coming to the throne in 1952. Her reign spanned 15 prime ministers and she remained for many the one constant point in a rapidly changing world. I want to extend my deepest support to the royal family as they embark upon their new roles and life without a cherished sovereign and much-loved mother and grandmother.
It is my sincere hope that you had a wonderful summer and you enjoy the lovely days ahead of early autumn.