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samantha
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Food for Thought on Real Estate – September 2022
- Seller’s market – A seller’s market is when there are more people looking to buy then there are homes available. This causes a rise in price above the long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio of 20% or higher.
- Buyer’s market – In contrast, a buyer’s market is when there are many more homes for sale than there are buyers. As a result, prices increase slower than the long-term average rate of inflation. In extreme circumstances this can cause prices to decline. Typically this is indicated by a sales-to-active listings ratio below 12%.e
- Balanced market – A balanced market occurs when supply and demand are about the same, with home prices rising in line with long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio between 12% and 20%.Summary Over a sustained period of time:
- a seller’s market is represented by a ratio of 20% or higher
- a buyer’s market is represented by a ratio of 11% or lower
- a balanced market rests between 12-19%
October 2022 Newsletter Introduction
Fall is now fully in effect! The changing colours of the leaves is a great indicator to welcome the new Season. Missed out on sending out the September newsletter as there was some personal family matters that required my attention. As a result, I’ll include both August and September stats package to this newsletter. I’m sure many of you as well as myself that September and this first week of October have been surprisingly warm with clear skies. The crisp air that usually comes with Fall have yet to arrive so I’m trying to enjoy the warmer weathers before it quickly disappears.
So what’s the latest for the real estate market? Answer – we’re experience a bit of a lull. The lack of inventory and demand has made the market reach a standstill. Homes that are available have been on the market for some time. Worldwide economic growth has come to a halt as we’re all being impacted by the soaring inflation. Many lenders and banks have tightening the rein to hold back on borrowing and increasing the interest rates. As Canada continues to curb the inflation, we are waiting for our next interest hike announcement later this month, and a possible hike by December. With the increase in interest rates, this would most likely to continue a downward pressure on demand and stay flat or slightly drop. However, there is a possibility that we may see some sort strategy change from the government since the Bank of England – one of the largest banks in the world have decided to pivot from the strategy of increasing rates. Would other banks follow suit? We’ll have to see….
– Sam
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Minus Cake Boutique
Highlights From the Real Estate Board September 2022
“With the Bank of Canada and other central banks around the globe hiking rates in an effort to stamp out inflation, the cost to borrow funds has risen substantially over a short period. This has resulted in a more challenging environment for borrowers looking to purchase a home, and home sales across the region have dropped accordingly.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,155,300. This represents a 3.9 per cent increase over September 2021, an 8.5 per cent decline over the past six months, and a 2.1 per cent decline compared to August 2022.
Sales of detached homes in September 2022 reached 525, a 44.7 per cent decrease from the 950 detached sales recorded in September 2021. The benchmark price for a detached home is $1,906,400. This represents a 3.8 per cent increase from September 2021 and a 2.4 per cent decrease compared to August 2022.
Sales of apartment homes reached 888 in September 2022, a 45.2 per cent decrease compared to the 1,621 sales in September 2021. The benchmark price of an apartment home is $728,500. This represents a 6.2% per cent increase from September 2021 and a 1.6 per cent decrease compared to August 2022.
“NOTE: this representation is based in whole or in part on data generated by the Chilliwack & District Real Estate Board, Fraser Valley Real Estate Board or Real Estate Board of Greater Vancouver which assume no responsibility for its accuracy.”
Download The Real Estate Board of Greater Vancouver’s August statistics Package. Click Here
Download The Real Estate Board of Greater Vancouver’s September statistics Package. Click Here
Download Fraser Valley’s Real Estate Board’s August Package. Click Here
Download Fraser Valley’s Real Estate Board’s September Package. Click Here
Food for Thought on Real Estate – July 2022
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BC government introduces “cooling off” period for home sales
- Seller’s market – A seller’s market is when there are more people looking to buy then there are homes available. This causes a rise in price above the long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio of 20% or higher.
- Buyer’s market – In contrast, a buyer’s market is when there are many more homes for sale than there are buyers. As a result, prices increase slower than the long-term average rate of inflation. In extreme circumstances this can cause prices to decline. Typically this is indicated by a sales-to-active listings ratio below 12%.e
- Balanced market – A balanced market occurs when supply and demand are about the same, with home prices rising in line with long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio between 12% and 20%.Summary Over a sustained period of time:
- a seller’s market is represented by a ratio of 20% or higher
- a buyer’s market is represented by a ratio of 11% or lower
- a balanced market rests between 12-19%
August 2022 Newsletter Introduction
How’s your Summer so far? We’re already half way thru it! The summer has been gone by so quickly with family visits and getting use to a new routine of where I’m trying to juggle between how to take care of toddler and working on my business within the time frame that I have since the hubs is back to work full time! Anxiety and worry of trying to do fulfilling these roles leaves me a little dejected because I don’t feel like I’m doing a good enough job. Yet, I know this is just all in my head and I’m not compromising my 100% on what I’m committed to do for my family and my clients! A word of encouragement and pep talk from the people you surround with is what you need to get that confidence and support back. I know I need it from time to time. I hope that sharing this little insight can enlighten you while you read this!
As mentioned in my last newsletter – July. As we continue on expecting interest rates to go up again later in September, many buyers are pulling the trigger to buy now since want to capture the purchase power they have remaining before another rate hike hits. As a result, there is a small flurry of activity of buyers looking to buy now. Since the buying power have gotten smaller due to the previous rate increase. So what now? Most buyers would have two choices – either they start to buy now or wait a bit longer to see how the market would do after the rates have been stabilized. This stability may not arrive till mid spring of next year. As for pricing – it will remain relatively the same with a possible small drop.
– Sam
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Nine Dumplings and Nine Dishes
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Surrey Central T&T Japanese Cream Bun
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