Tag: Real Estate Vancouver

The COVID pandemic has had an interesting affect on the real estate market in British Columbia over the past couple of years. And while real estate sales peaked in many areas of the province in 2021/2022, most areas are now seeing the flip side of this trend with prices dropping and inventory staying on the market for longer periods.

With 2023 Now Underway, What Can British Columbians Expect?

According to the British Columbia Real Estate Association (BCREA), residents of the province can expect 2023 to bring lower prices across the board, but the dip is expected to be relatively short-lived, with the market rebounding somewhat in 2024. The main reasons for the price dip in 2023 are due largely to the slowing economy and increasing mortgage rates.

Greater Vancouver will experience the lowest decline in the number of homes being sold and BCREA anticipates a reduction of approximately 4.3%. Prices are expected to drop by about 7.2% with the average home price falling to around $1.18 million.

According to Robert Hogue, assistant chief economist at RBC, activity in the Lower Mainland and Victoria appears to be levelling off.

“Recent declines have slowed quite considerably, and we’re probably not that far off from the bottom. But that being said, the level of activity, even in B.C., is historically low right now. Things are quiet,” he said.

Over the course of the next several months, home prices are expected to drop further. Affordability, however, also remains an issue which will hold the level of activity down and restrict gains for sellers.

As the tide turns and the number of sales starts to increase, the recovery is expected to be subdued. Huge jumps in prices are not expected and we won’t see the frenzy that was experienced in 2021/2022. Higher interest rates, after years of historical lows, will also keep activity in check.

While 2023 may not be a banner year for sales across the Province, BCREA anticipates 2024 will bring a healthier economy and with it, lower mortgage rates. Combined with the expected high level of immigration, all of these factors should assist in the recovery of the market and stimulate home sales once again.

If you’re considering buying or selling your home, contact the team at One Flat Fee to see how we can assist. We’re happy to offer guidance and expertise at the right time to conduct your real estate transaction. Reach out today!

The real estate market is generally always evolving. In Vancouver and other major centres in Canada, the market has remained strong throughout the pandemic, however, prices have been softening and sales are taking a little longer than during the peak times in 2021/2022.

Sales

According to the Real Estate Board of Greater Vancouver (REBGV), January 2023 saw 1,022 home sales, more than a 50% decline from January 2022. When comparing January 2023 to December 2022, sales declined by just over 21% from 1,295 units sold in December.

Listings

The Multiple Listing Service ® (MLS®) in Metro Vancouver saw 3,297 new listings in January 2023, whereas January 2022 saw 4,170 homes listed for sale. While this represents a 20.9% drop, it reflects a significant increase against December 2022, which saw only 1,206 new listings.

Prices

According to the British Columbia Real Estate Association (BCREA), 3,047 residential units were recorded sold in January 2023 across the Province. Year over year, this represents a decrease of 50.3%. In greater Vancouver, the average price fell 8.4%, year over year, to $1,167,134.

Interest Rates

The Bank of Canada interest rate has undergone eight (8) increases over the past year, however, indications are that further increases may be suspended if the economy continues to warrant this policy.

The Bank of Canada rate increased from a low of 0.25% in March 2022 (and many months prior) to 4.5% in January 2023. With this, comes higher prime rates, as well as higher variable and adjustable mortgage rates.

Cooling Off Period

Effective January 1, 2023, the Government of British Columbia has enacted a new regulation allowing home buyers to back out of a real estate purchase for up to three business days after signing a contract. This cooling-off period applies only to the purchase of the residential property.

The Province believes it will provide buyers an opportunity to do their due diligence for obtaining financing or having a home inspection completed even if the buyer does not list these as “Subjects”. Now, the buyer can end the contract for any reason, within three (3) business days. If deposit funds have been paid upon acceptance of the Offer, the buyer is entitled to a refund.

Buyer beware: should you cancel a contract within the three-day cooling-off period, a Recission Fee of 0.25% is payable to the Seller. For example, if the purchaser exercises the right of rescission on a $900,000 home, they’d be required to pay the seller $2,250.

How this will affect the real estate market in Vancouver remains to be seen. For all your real estate needs, contact One Flat Fee and speak with our professional, qualified team.