May Founder’s Message – The Late Days of Spring
Metro Vancouver’s real estate market is returning to a more traditional pace of home sales during the later days of spring. The Real Estate Board of Greater Vancouver (REBGV) recently reported that home buyer demand is going back to a more typical level.
“Over the last two months, we’ve seen home sales ease down from the record-breaking pace of last year,” explains Daniel John, chair, REBGV. This, in turn, will give home buyers more time to make decisions, secure financing and perform other due diligences such as home inspections.
With that said, the Canada Mortgage and Housing Corporation (CMHC) predicts the growth in prices, sales levels and housing will start to moderate from recent highs but will still remain elevated this year.
Sales activity is expected to remain above the five- to 10-year averages even as the Bank of Canada is predicted to further increase interest rates. Sales of detached, attached and apartment properties newly listed on the Multiple Listing Service (MLS) has decreased 23.1% from April 2021 and is 8.5% down compared to March 2022.
The REBGV reports that residential sales totaled 3,233 in April 2022, a 34.1% decrease from the same time last year and a 25.6% decrease from March 2022. Although last month’s sales were 1.5% above the 10-year April sales average, signs of slowing are emerging.
Prices across Metro Vancouver are still up substantially from last year despite a shift from the frenzy of the past two years. The MLS Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,374,500. This is up 18.9% over April 2021 and a one percent increase compared to March 2022. The benchmark price for a detached home is $2,139,200, up 20.8% from this time last year.
Now is an excellent time to purchase or sell. We invite you to contact one of our experienced VIRANI advisors to receive a complimentary, in-depth comparative market evaluation of your home. There are many excellent real estate opportunities available across the Lower Mainland. VIRANI is currently offering access to Horseshoe Bay by Westbank, a luxury resort-style village that is Metro Vancouver’s last true waterfront development. We have less than 20 homes remaining starting at $1,588,800, featuring the best of West Coast Modern architecture and spectacular views of Howe Sound. Get in touch with us to be first to receive the best opportunities in many other luxury developments we are involved with in downtown Vancouver and the North Shore.
The Bank of Canada raised its key interest rate in March and April — and is considering doing it again in June to keep inflation in check. With inventory of homes for sale slowly increasing and interest rates on the rise, it’s important to work with one of our highly knowledgeable advisors to understand the current market conditions. In the past month, VIRANI has sold 25 homes. We welcome your calls so we can help you reach your individual real estate goals.