The Vancouver Life Real Estate Podcast Vancouver Real Estate Market Update For October 2023
This week in real estate, the landscape has been bustling with significant developments that are set to impact the Canadian market extensively over time. First off, the announcement made by David Eby regarding the sweeping rezoning legislation across the entire province has stirred things up. The legislation now permits the construction of multifamily units on any single-family lot, effectively transforming the housing prospects across British Columbia. This move comes in response to the record-high immigration figures, with the immigration minister affirming they will increase immigration to 500,000 people next year and then they will maintain that target for the next three years!
In the United States, the Federal Reserve has also decided to hold its current interest rate, reflecting a similar trend seen in Canada as both economies begin to slow heading into the winter months. Furthermore, a fresh GDP update in Canada indicated stagnant economic growth despite rapid population expansion, pointing towards further economic slowdown. In fact, Q2 CND GDP reports have been revised downwards from flat, to negative. The 5-year bond yield in Canada has also witnessed a significant drop of 10% in the last week and a half, leading to expectations that fixed-rate mortgages will also soften in the coming months.
Turning our attention to the October real estate statistics in Vancouver, the volume of sales has shown a very moderate increase from the previous year, yet they remain considerably below (-29.5%) the 10-year historical seasonal average. This is due largely to high mortgage rates deterring potential Buyers from the space. Meanwhile, new listings have been increasing and although overall inventory has experienced a slight dip, with the market leaning towards a balanced state, we should see continued trajectory towards a balanced and in some cases a Buyer's market. Notably, the HPI price has displayed a downward trend now for three consecutive months, while the median price has been on the rise.
In terms of housing market's dynamics, the average days on the market remain steady at 12, indicating a swift turnover for well-priced properties. Despite the overall slowdown, certain high-demand properties are still generating significant levels of interest, as demonstrated by recent multiple offer scenarios we describe in the podcast. Well-maintained properties that are priced to market in a desirable neighborhood are continuing to sell and in some cases with competition.
Looking ahead, it is expected that the current subdued level of activity will persist throughout the remainder of the year and will likely spill over into 2024, largely influenced by the rate hikes implemented nearly two years ago now compounded by seasonal fluctuations. Additionally, the slowing down of the US markets is projected to have a ripple effect on the Canadian economy and real estate landscape, further contributing to the prevailing market conditions as consumer sentiment remains pessimistic.
_________________________________
Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife
Dan Wurtele, PREC, REIA
604.809.0834
Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com