Metro Vancouver Market Update for October 2022
On October 26, The Bank of Canada raised the policy interest rate again for a 6th time this year - the rate which was 0.25% in January 2022, is now 3.75%. The final 2022 rate announcement is December 7. Rate increases have caused a number of borrowing challenges for prospective buyers as well as mortgage holders who have either had to refinance or are holding variable rate mortgages that have been adjusted.
Accordingly, prices are down 10% overall from the March 2022 peak, however, sales volume is also down 45.5% year over year and 33.3% below the 10 year average while inventory is up 22.6% year over year. The sales-to-active listings ratio is currently 20% in Vancouver and 17% in the Fraser Valley - indicating a balanced market to soft seller's market.
“Inflation and rising interest rates continue to dominate headlines, leading many buyers and sellers to assess how these factors impact their housing options. With sales remaining near historic lows, the number of active listings continues to inch upward, causing home prices to recede from the record highs set in the spring of 2022.”
Prices might come off a little more (1-5%), and if you were submitting an offer on a property right now you could probably make that case (especially on the many properties that have been sitting on the market extended periods), however, between Metro Vancouver's population growth and housing supply shortage (rents are up 20%+ in Vancouver and 18%+ in Burnaby year over year), we might see the market level out (we might even be there) or even put some upward pressure on prices again early in the new year.
