October 2022: Vancouver Real Estate Highlights

Inflation and the rising cost of living continues to dominate our headlines. As does the state of our real estate market and the ambiguity that comes with that. Overall, October 2022 saw the number of residential sales slowly creep up and gain a little more traction as the number of days on the market came down. This is not uncommon given that a fall market typically speeds up after summer. So, here’s what happened in the real estate market last month.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales saw a 45.5 percent decrease in October 2022 with only 1,903 sales compared to the 3,494 sales recorded in October 2021. However, this is a 12.8 percent increase month over month from the 1,687 homes sold in September 2022.

MARKET REPORT BY PROPERTY TYPE

It’s no secret that falling homebuyer demand has impacted prices in Vancouver, with the overall average price for residential properties dropping to $1,148,900; a 9.2 per cent decline compared over the last six months. Not surprising then that home sellers are wary. We’ve seen more listings and less sales, which naturally puts pressure on the price. It’s a classic case of supply and demand. 

It’s also worth noting that October 2021 saw record highs, so things look worse on the surface. Let’s take a look at what that is doing to the sales activity compared to same time last year:

So, there are advantages at both ends of the spectrum.

WHAT THIS MEANS FOR SELLERS

You want to focus on the average list price and work hard to maximize your potential offer. Yes, you’ll need to put more effort into selling your home than you would have a year ago. This is crucial so you can stand out from your competition. Your Realtor will help you make the right first impression so your home is prepared to attract the most potential buyers as soon as you list. This includes your list price strategy – it’s much less likely that you’ll have multiple offers, and even less so that you’ll get an offer over asking. Make sure you enter the market with the right expectations.

WHAT THIS MEANS FOR BUYERS

With high mortgage rates and homes in Vancouver still being considered as highly expensive, you might be running for the hills. And you wouldn’t be alone in that sentiment. There are way less buyers these days. And that’s exactly why you should use that to your advantage!

• You have more options to choose from and find a home that truly matches your dream list of criteria
• You don’t have to rush into making an offer out of concern of entering a bidding war
• You have more negotiation power when it comes to removing subjects
• You can always re-finance when (yes, when) interest rates come down again.

On the topic of financing, the Bank of Canada has hinted, quite heavily, that another interest hike will be coming in December. So don’t wait until then to get pre-approved. And remember, most pre-approvals will lock in your interest rate for 60-90 days.

Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.