Last month was notably busier compared to August 2022, with a substantial 21.4% increase in sales. While we’re still below the ten-year seasonal average, this uptick signals a lively market, especially given the current high-interest-rate environment.
In some recent news, the Bank of Canada has opted to keep interest rates unchanged. The overnight rate remains at 5%, the Bank Rate at 5¼%, and the deposit rate at 5%. If you’ve been on the fence about making a purchase, now might be a good time to start considering your options. The next interest rate announcement is scheduled for October 25th, and it’s currently a 50/50 chance whether rates will go up or stay at this level, despite some observed economic contraction in the country.
Even with all the economic ups and downs, Vancouver’s real estate market is holding steady. If you can handle the current interest rates and with the anticipation of them decreasing in the coming years, you can expect the Vancouver market to remain strong. As average rates gradually settle around 4.5%, we may even see more buyers entering the market. Don’t forget, nearly 96% of Canada’s population growth last year was attributed to international migration, resulting in an impressive total increase of one million people.
In summary, August brought some encouraging numbers, and the Bank of Canada’s decision hints at a positive outlook for real estate. Vancouver’s market remains resilient, offering opportunities for those ready.
Regarding September, it’s certainly kicked off at a slower pace, recording just 640 sales so far this month (as of Sep 13). That translates to an average of 49 sales per day, compared to the 74 we saw in August. It appears that many buyers were holding off for the latest announcement and are now taking their time to get things in motion. This situation could present some promising opportunities for buyers with cash or with mortgage eligibility, as certain listings aren’t moving as swiftly, and sellers might be feeling a tad impatient. Our team specializes in negotiations, so if you’re prepared, allow us to assist you in uncovering the excellent deals that the Fall market has to offer.
It’s worth noting that, despite the robust performance in August, there’s a strong possibility we may witness a modest 5-10% decrease in prices from now up until January. We’ll be keeping a close watch on how the rest of the month unfolds and will keep you updated.
Keep an eye on further updates as we navigate the ever-changing world of real estate.