The Vancouver Life Real Estate Podcast

Inflation hit a 30 year high in Canada this month, and looks to continue that trend in the upcoming months.    This further galvanizes the Bank of Canadas expected 50 basis point rate hike on June 1st, with more hikes anticipated, until, we enter a recession.  You could argue the main indicators of a recession are already in place, being high interest rates, low consumer confidence, and stagnant wages or reduced real income in the labor market. The rising interest rates are already making housing affordability even harder.  The home price and mortgage rate increases over the last 6 months alone have made the average mortgage payment increase by $800.      The last time it rose by that amount it took 6 years. The early ramifications of the rapidly accelerating cost of living can already be seen.       Ontario home prices were down 6% last month, Vancouver median and average prices are down 5% in May, the first drop in Canadian HPI price since April 2020 happened last month.   Inventory is rapidly increasing and most notably, prices across Canada dropped with only 2.2 months of inventory.  This has never happened.  You have to go all the way up to 5 months of inventory to see the nearest price drop. The question now is, which will break first (or the most), the economy or housing? www.thevancouverlife.com  _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

2021 home sales volume was 20% higher than any other year.  Along with all these home purchases comes debt in the form of mortgages.    A quarter trillion of new mortgages in 2021 to be exact.    Household debt in Canada is now at 180% of disposable income, a new all time high.  Whats more, with rates rising, the majority of new mortgages have been variable to the tune of 55%, up from just 8% two short years ago.    The amount of mortgages issued to people putting the minimum 5% down doubled from 2020.    So, is it all a house of cards about to come crashing down?  Or will record low delinquencies and homeowner equity carry us through to the next upward cycle?   We look into this further and share our vision on where housing is going next.www.thevancouverlife.com  _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

On the 'plus' side, unemployment is at an all-time, never been seen before low, at 5.2%   Meanwhile, there are a whopping 862,000 job vacancies at the same time.    The economy looks good, right?    Well, stepping back a bit, wage growth is only at 3.4% while inflation is around 7%, making wage growth negative.   Businesses are raising prices faster than salaries and the FIRE industries shed jobs at the highest rate in 4 years.When it comes to housing, sales in Toronto are down 40% in 2 years, dropping faster than they did during the Global Financial Crisis and prices dropped 5% in April, the fastest ever for a non 'lockdown' month of April.   And more rate hikes are coming... In GRVD, active listings jumped 10% in the first 2 weeks of May, are up for the 5th month in a row, and are the highest dating back to July 2021.   The Median and Average prices have dropped 9% in the past 2 weeks alone.  It appears the Bank of Canada has already taken notice as the Deputy Governor is already publicly stating that “ how high rates go will depend on how the housing market responds to rising borrowing costs.”On top of this, there is a backlog of 1.8 million immigrants looking to obtain citizenship and move to Canada.So while the real estate market is dropping off a cliff, the question now becomes, how big is this cliff, and how high will it bounce off the bottom?www.thevancouverlife.com _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

We just reached episode 100 and wanted to take this opportunity to thank all of you who have listened to our Podcast over the past 2 years and to all our interviewee's.    Over this time we have prided ourselves on bringing you real time information on the Vancouver real estate market along with a deep dive look into why prices are moving the way they are, and our expert opinion on what to expect in the upcoming months and how to best capitalize.   We also share our Top 5 Most listened to episodes and ask you, what would you like to hear next?  What do you want more of, less of, and who should we interview?   Please send us your feedback to info@thevancouverlife.com     Thanks again and here is to the next 100 episodes!!www.thevancouverlife.com _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

Home sales were just 1.5% above the 10 year average in April.   This is significant because for the last year and a half its been over 25% above.   This metric along with a record breaking reduction in the sales to active listings ratio are 2 of the biggest indicators of the shift in the marketplace.    In this episode we dive into the April 2022 stats and break down whats important and why the numbers are changing as fast as they are.  www.thevancouverlife.com _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

After an intense 27 month bull market that saw prices rise 38%, the Vancouver Real Estate market has officially peaked and now prices are dropping.  April home sales saw a 30% reduction in volume, and prices are lowering for the second month in a row.  While the drop is only a few thousand, the indicators are pointing for this amount to increase, and steadily fall for months to come.    In this episode we examine the key drivers of this downward trend and share our predictions on how far prices will fall, and for how long. www.thevancouverlife.com  _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

Sifting through rental ads and applying again and again for a rental can be frustrating to say the least.   And how do you tell if the rental information listed is even accurate?   And for landlords, sifting through dozens of applications is time consuming and again, very hard to tell who the best candidates are.   The solution?  Say hello to RentalHunt.ca      An idea spawned from 2 college students who know the pains of these scenarios first hand.  Sam and Amal share their vision of solving these pain points and how they see the future of rental housing.Learn more at rentalhunt.ca www.thevancouverlife.com _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

The Bank of Canada raised interest rates a half point on April 13th marking the largest increase in 22 years, and the first back-to-back rate hike in 5 years.   Variable mortgage holders are now paying more for their homes and the BoC has all but guaranteed there will be more rate hikes, and soon.   So is it time to be worried about your mortgage?  Is it the right time to move into a Fixed Rate mortgage?   What does this mean to home prices?    Mychal Ferreira, a Senior Mortgage Specialist with the Bank of Montreal joins us this week to answer these questions. www.thevancouverlife.com _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

With the March numbers firmly in place we can share that Vancouver home prices increased in value by over $130,000 in the first 3 months of 2022.   This comes on the heels of a record setting 20% increase in prices during 2021.   So when will this torrid pace of appreciating values end?  Soon.   Very soon.    2 of the 3 price metrics in March were lower - and this is just the beginning.  With most banks Fixed Rate Mortgages around 4%, we're seeing an immediate impact on the marketplace.  And how could you not?  With rates up 2.5% this year the average home buyer has seen their buying power decrease by 20%        A $2,400 monthly payment  a year ago got you a $700,000 mortgage.  Today, $500,000.   Big big difference.   So what happens next?  We dive into the data and give you our feedback, analysis and predictions on what is going to happen over the upcoming months.www.thevancouverlife.com  _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com

On March 28, 2022 the Minister of Finance introduced a one sentence amendment that would allow homebuyers the opportunity to back out of a contract within a given amount of time.   The details at this point are vague at best, but we wanted to share our thoughts on what we know so far.  Essentially, the Bill is being put in place, to be implemented by Summertime, to allow buyers the time to perform an inspection and obtain financing.  Well, any good realtor will tell you this can be done prior to an offer - along with a number of other practices that entirely protect buyers.   It goes on to mention that this right of recision period may potentially be waived.  What?   And that a financial penalty may be put in place for buyers who do not complete on a purchase.     It's important to note at this time the legislation was put forth without consultation with the Real Estate Industry.    Said industry has voiced their opinions though, and presented a 57 page white paper outlining its recommendations on how to further protect buyers.   We dig into all of this and present our own solutions. www.thevancouverlife.com _________________________________ Contact Us To Book Your Private Consultation: 📆 https://calendly.com/thevancouverlife Dan Wurtele, PREC, REIA 604.809.0834 dan@thevancouverlife.com Ryan Dash PREC 778.898.0089 ryan@thevancouverlife.com www.thevancouverlife.com