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Highlights From the Real Estate Board December 2023
“You could miss it by just looking at the year-end totals, but 2023 was a strong year for the Metro Vancouver housing market considering that mortgage rates were the highest they’ve been in over a decade.”
“In our 2023 forecast, we called for modest price increases throughout the year while most other forecasters were predicting price declines. The fact that we ended the year with five-per-cent-plus gains in home prices across all market segments demonstrates that Metro Vancouver remains an attractive and desirable destination, and elevated borrowing costs alone aren’t enough to dissuade buyers determined to get into this market,” said Lis.
“Ultimately, the story of 2023 is one of too few homes available relative to the pool of willing and qualified buyers,” Lis said. “Sellers were reluctant to list their properties early in the year, which led to fewer sales than usual coming out of the gate. But this also led to near record-low inventory levels in the spring, which put upward pressure on prices as buyers competed for the scarce few homes available.”
“Looking back on the year, it’s hard not to wonder how we’d be closing out 2023 if mortgage rates had been a few per cent lower than they were. And it looks like we might get some insight into that question in 2024, as bond markets and professional forecasters are projecting lower borrowing costs are likely to come, with modest rate cuts expected in the first half of the New Year.”
Sales of detached homes in December 2023 reached 376, a 1.3 per cent increase from the 371 detached sales recorded in December 2022. The benchmark price for a detached home is $1,964,400. This represents a 7.7 per cent increase from December 2022 and a 0.9 per cent decrease compared to November 2023.
Sales of apartment homes reached 719 in December 2023, a 2.4 per cent increase compared to the 702 sales in December 2022. The benchmark price of an apartment home is $751,300. This represents a 5.6 per cent increase from December 2022 and a 1.5 per cent decrease compared to November 2023.
“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 December statistics Package. Click Here
Download Fraser Valley’s Real Estate Board’s December Statistics Package. Click Here
Food for Thought on Real Estate – December
- 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
January 2024 Newsletter Introduction
WELCOME 2024!! How’s the first couple of days into the new year? Have you already planned your next getaway already? I had originally and anticipated to be a single parent for 2 weeks this January when the hubs was suppose to go overseas for a solo trip. However, he decided in wanting a family trip later in the year instead. I am a little disappointed – as I was really wanting him to enjoy his solo trip as he hasn’t had one in such a long time!
As for the market and rates, most people are anticipating to see how the rates are holding up and whether there will be any changes for the next rate announcement happening on January 24th. From December till now, there has been some uptick in activity in the market as more buyers are confident in jumping into the market as fix rates have dropped significantly due the holding rates. Will we see more rates to continue dropping which can impact the variable to drop as well? Time can only time.
– Sam
Baum Kuchen Studio – Hachiya
Song (by Kin Kao)
Highlights From the Real Estate Board November 2023
“We’ve been watching the number of active listings in our market increase over the past few months, which is giving buyers more to choose from than they’ve been used to seeing over the past few years. When paired with the seasonal slowdown in sales we typically see this time of year, this increase in supply is creating balanced conditions across Metro Vancouver’s housing market.”
“Balanced market conditions typically come with flatter price trends, and that’s what we’ve seen in the market since the summer months. These trends follow a period where prices rose over seven per cent earlier in the year,” Lis said.
“You probably won’t find Cyber Monday discounts, but prices have edged lower by a few per cent since the summer. And with most economists expecting mortgage rates to fall modestly in 2024, market conditions for buyers are arguably the most favorable we’ve seen in some time in our market.”
Sales of detached homes in November 2023 reached 523, a seven per cent increase from the 489 detached sales recorded in November 2022. The benchmark price for a detached home is $1,982,600. This represents a 6.8 per cent increase from November 2022 and a 0.9 per cent decrease compared to October 2023.
Sales of apartment homes reached 850 in November 2023, a 0.4 per cent increase compared to the 847 sales in November 2022. The benchmark price of an apartment home is $762,700. This represents a 6.2 per cent increase from November 2022 and a one per cent decrease compared to October 2023.
“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 November statistics Package. Click Here
Download Fraser Valley’s Real Estate Board’s November Statistics Package. Click Here
Food for Thought on Real Estate – November
- 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
December 2023 Newsletter Introduction
OMG – who is ready for the Christmas Festivities? I can’t believe in less than 15 days it will be Christmas Day and we’ll be ringing the new year soon! To get into the holiday mood, I got a chance to take a weekend getaway to visit Leavenworth WA. The iconic German Village that has adorned itself over hundred of thousands of Christmas lights along with the white snowy background makes it the ideal Winter Wonderland! It was a great opportunity to relive a bit of my childhood, and to share it along with my little one as well! I’ve also been scrambling in chicken scratching up Christmas cards which has left my hand cramped out. I’m clearly out of practice in actually writing!
In the last rate announcement of early December, the Bank of Canada has decided to end the year off by holding the rates again. As a result of this continue holding rate, many banks are using this a gauge and feeling optimistic on the long term horizon that rates will be dropping. Banks are now dropping their long term fix rates at an average of 5.49% or even as low as 4.99% depending on different conditions and which financial institution. So there may be a surge of buyers coming thru in early 2024 as banks provide a sense of confidence and encouragement for buyers to start looking again. However, the rate be steady for now, but the chance of rates to continue rising is very much possible so we’ll have to see what the next rate announcement will be on January 24, 2024.
– Sam
Naruto Taiyaki
Naruto Taiyaki – A staple when it comes to treats and small eats. The signature golden crispy kyo fish batter and the sweet red bean filling is lightly. A light snack you can enjoy on the many walking tours in a city. A must try!