Real Estate Matters – May 2023
Hello!
We discussed the market recovering last month. This month though, activity has increased unexpectedly high, resulting in multiple offers and higher prices. This was a direct result of the rate stabilization, fixed rates coming down, pent up activity, and increase in immigration.
Will this activity hold through the summer? It may, but typically there’s a lull in July/August when kids are on Summer break, families taking vacations, etc. It would be very telling to see what takes place then.
In the meatime, in this month’s “Real Estate Matters” video above, you will see some key points for both Sellers and Buyers in this market. As usual, if I may be of service, I would be happy to chat! Just reply to this email and we can set up a time to do so!
VANCOUVER, BC – May 2, 2023 – With listing activity remaining below historical norms, home sales in Metro Vancouver1 have mounted a surprising comeback, rising near levels seen last spring, before eight consecutive interest rate hikes eroded borrowing power and brought home sales activity down along with it.
“The fact we are seeing prices rising and sales rebounding this spring tells us home buyers are returning with confidence after a challenging year for our market, with mortgage rates roughly doubling,” Lis said. “The latest MLS HPI® data show home prices have increased about five per cent year-to-date, which already outpaces our forecast of one to two per cent by year-end. The year is far from over, however, and it remains to be seen if these price increases will be sustained into 2024.”
“When we released our market forecast in January, we were one of the only organizations taking the contrarian view that prices were likely to appreciate in 2023,” Lis said. “And what we’re seeing unfold so far this year is consistent with our prediction that near record-low inventory levels would create competitive conditions where almost any resurgence in demand would translate to price escalation, despite the elevated borrowing cost environment. At the crux of it, the issue remains a matter of far too little resale supply available relative to the pool of active buyers in our market.”
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