Metro Vancouver Real Estate News – Housing Market Update
Vancouver Real Estate News: here’s what we are seeing in the Metro Vancouver Housing Market.
Generally speaking, prices have decreased over the last six months across Metro Vancouver. This was expected as the BoC hit us with 7 consecutive rate hikes over the course of 2022 for a grand total of 4%.
I don’t think the BoC has completely shut the door on rate hikes all together as they are still managing inflation expectations, however they are starting to shift the dialogue. It does send a signal that we could potentially be nearing the end of the increases at least. The BoC also mentioned that it takes 18-24 months for these changes to filter their way through the system, so although holding rates would certainly be welcomed news, it is by no means a signal that rates will be decreasing in the immediate future. What we can expect? I think this will bring about balance in the market.
“The Bank expects CPI inflation to ease as higher interest rates help rebalance demand and supply, price pressures from global supply disruptions fade, and the past effects of higher commodity prices dissipate. CPI inflation is projected to move down to about 3% by the end of 2023, and then return to the 2% target by the end of 2024.”
This is important for potential homebuyers that it should give us some sure footing and direction heading into the New Year that stabilization is on the horizon. Additionally, as of January 3rd 2023, the Home Buyer Rescission Period (HBRP) regulation will come into effect. This legislation provides buyers in B.C three business days to rescind/cancel an accepted contract of purchase and sale of residential property. The right of rescission is separate from any subject clauses that may in the contract. As a buyer who exercises their right to rescind within the 3 day period will have to pay a fee of 0.25% of the purchase price to the seller.
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The ban on non-permanent residence purchasing residential property is also set to come down the pike next month, affecting all of Canada. The Prohibition on the Purchase of Residential Property by Non-Canadians Act will be in effect for two years. The federal government has still not released the supporting regulations for the foreign buyer ban which will include definitions, exceptions and enforcement elements, so I will keep you posted on that once we know more. From a market perspective, foreign buyers don’t have the same influence on the Vancouver housing market after the 20% foreign buyer tax was introduced back in 2016. Therefore I don’t think this will make much of a difference.
Now onto prices:
The current MLS® Home Price Index in Metro Vancouver is $1,131,900 which is a 0.6% decrease from this time last year, and a 10.2% decrease over the last six months.
November 2022 sales broken down by segment:
- Detached home sales decreased by 50.8% , bringing the benchmark price down to $1,856,800. This represents a 1.9% decrease from October 2022.
- Apartment sales decreased by 53.7%, bringing the benchmark price down to $720,500. This represents a 0.9% decrease from October 2022.
- Attached home sales decreased by 54.2%, bringing the benchmark price down to $1,027,900. This represents a 1.5% decrease from October 2022.
Use these price adjustments to your advantage and plan accordingly. As interest rates decrease, demand will more than likely increase, driving our market back up once again. Although the current interest rates impact borrowing power and inflate monthly mortgage costs in the short term, there are proven ways to work the system to help you thrive in the long term. Reach out to me anytime to find out how you can use your current equity to upsize for more space, build your portfolio from the BRRR method to rentals, or if you’re not in the market yet find out why it makes sense to get in sooner rather than later. That’s it for this month’s Vancouver real estate news, until next time!