The REBGV (Real Estate Board of Greater Vancouver) has reported that there were a total of 1,870 homes sold in August of this year. This represents a 0.9% decrease from July 2022 and a 40.7% decrease from August of last year.
“With inflationary pressure and interest rates on the rise, home buyer and seller activity shifted below our long-term seasonal averages this summer,” Andrew Lis, REBGV’s director, economics and data analytics said. “This shift in market conditions caused prices to edge down over the past four months.”
During August 2022 there were 3,328 newly listed properties across all types (detached, attached and condo). This is a 17.5% decrease from August of last year and a 16% decrease from July 2022.
“Home buyers and sellers are taking more time to assess what this changing landscape means for their housing needs,” Lis said. “Preparation is critical in today’s market. Work with your Realtor to assess what today’s home prices, financing options, and other considerations mean for you.”
The sales-to-active ratio for all property types combined is 19.4% for August 2022. This is broken down into each type as follows:
Analysts generally state that downward pressure on home prices occurs when the sales-to-active ratio moves below 12% for a sustained period, while prices of homes will often have upward pressure when it surpasses 20% over a sustained period.
There were 517 detached homes sold in August of this year. This represents a 45.3% decrease in the number of sales from August of last year. The benchmark price for detached homes sits at $1,954,100, which is a 7.9% increase from August of last year and a 2.3% decrease from July 2022.
The total number of attached homes that were sold in August 2022 was 355. This is a 38.4% decrease from August of last year and attained a benchmark price of $1,069,100. This is a 12.7% increase from August of last year and a 2.5% decrease from July of this year.
Sales of apartments reached a total of 998 for August of this year. This is a 38.8% decrease from August 2021. The benchmark price attained for an apartment in the region was $740,100. This is an 8.7% increase from August 2021 and a 2.3% decrease from July of this year.
The predicted rate increase was actually OVER .50 and came in at .75 points. This will maintain the cooling effect on the market and keep having a downward force on prices, as purchasers are simply not qualifying for higher. If a seller wants to sell they are going to have to adjust for this and thus prices will be down from earlier this year.
This will be of benefit to those that are trying to get into the market as that 5% minimum down is now coming back into reach… Provided that they still qualify at the higher rate of course. Speaking with a mortgage professional is a great idea to see the lay of the land.
Those that have equity in their home and/or are renewing their mortgages may want to consider looking to purchase an investment property in the coming months. With falling prices, getting in on an investment property at a lower price will be an attractive option due to rents still being quite high and will likely remain high as there is a severe lack of supply in rental units.
Overall this market shift can be of great benefit to the buyers and investors that have been waiting for downward pressure on prices. That time has arrived and as the adage goes… Hit while the iron is hot… Where the bottom of the market is, no one knows and it is VERY difficult to time perfectly.
If you would like a more targeted analysis for your particular area or needs and to figure out how to make this shift best benefit you, please feel free to contact me via phone at 604-522-4777 or e-mail directly at: firstname.lastname@example.org or join us at our Facebook Page (www.facebook.com/HazeRealty)