Are you looking to add to your real estate portfolio? While it might not seem like the right time to purchase property with interest rates so high and economic uncertainty surrounding us, experienced investors always take notice of opportunities when the market is out of favour. 

It’s always seems a lot easier to make a purchase when the market is busy and multiple offers are the norm. In this sort of market buyers tend to drive prices higher. 

In an “out of favour market prices tend to be flat or down, buyers are few in numbers and sellers are motivated to negotiate. This is the exact type of market we like to purchase in. Buy when the masses are on the sidelines and you have the opportunity to shop around and look for opportunities. 

If you are like many investors who know Vancouver, the prediction is for long term appreciation once the economy stabilizes, interest rates begins to fall and immigration takes hold. We think that a real estate investment today will likely prove to be a great decision when you look back in 5 years. Remember, real estate is not like the stock market with prices going up and down in a matter of weeks and months. Real Estate has always best been played as a long-term investment with a horizon of 5 years and longer. 

If you are sitting on cash and want to put some to work now, we see some great opportunities out there. One segment of the market we like are Pre Sales. Think about this, you can make a 5 to 15% deposit on a pre sale property paying the full balance in 2 to 3 years. If you like the location and upside of a particular location for its growth then quite possibly, by placing a deposit now on a property in that location today when it’s time to close the purchase in 2025, you may find the value has already increased well above what you negotiated back in 2023. If it has not appreciated it’s ok, your time horizon is long term. What will it be worth in 2028 and beyond is what you should be asking. 

Right now developers are offering tremendous incentives to lure buyers in the doors. Those incentives can be in the form of unit upgrades, interest earned on buyer deposits, a free Tesla , 12 months of no strata fees and so on. Developers are also offering smaller upfront deposits to secure a purchase. When the market was going gangbuster, most developers wanted 20-25% down over a 1-2 year period. The deposits now in many cases have been reduced to 10-20% down. This means as a buyers you are tying up a lot less capital but securing the right to own that property 2-3 years before it’s built. 

If you are looking to add to your real estate holdings we have some great ideas on where and what to invest in. Real estate as a long term holding strategy can lead to tremendous retirement nest egg. Let us show you how. 

The Latest 2023 Market Stats by area are out and available for download. You get the following graphs and charts for both Vancouver East and Vancouver West.

• Activity Snapshot by Property
• Type Detached Properties Report and Graph
• Condo Report and Graph
• Townhomes Report and Graph
• Benchmark Price Graph
• Average Price Per Square Foot

If you are interested in a report like this is for other areas, please contact us to request it and I'll send it to you.

GET THE FULL REPORT

VANCOUVER, BC – March 2, 2023 – February listing data show a continued reluctance among prospective home sellers to engage in Metro Vancouver’s* housing market, leading to below-average sales activity. With sales remaining well-below historical norms, the number of available homes for sale in the region have continued inching upwards.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,808 in February 2023, a 47.2 per cent decrease from the 3,424 sales recorded in February 2022, and a 76.9 per cent increase from the 1,022 homes sold in January 2023.
Last month’s sales were 33 per cent below the 10-year February sales average.

“It’s hard to sell what you don’t have, and with new listing activity remaining among the lowest in recent history, sales are struggling to hit typical levels for this point in the year,” said Andrew Lis, REBGV’s director, economics and data analytics. “On the plus side for prospective buyers, the below-average sales activity is allowing inventory to accumulate, which is keeping market conditions from straying too deeply into sellers’ market territory, particularly in the more affordably priced segments.”

There were 3,467 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in February 2023. This represents a 36.6 per cent decrease compared to the 5,471 homes listed in February 2022 and a 5.2 per cent increase compared to January 2023 when 3,297 homes were listed.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 7,868, a 16.7 per cent increase compared to February 2022 (6,742) and a 5.2 per cent increase compared to January 2023 (7,478).

“While we continue to expect home price trends to show year-over-year declines for a few more months, current data and market activity suggest pricing is firming up. In fact, some leading indicators suggest we may see modest price increases this spring, particularly if sales activity increases and mortgage rates hold steady,” Lis said. “In the somewhat unusual market environment we find ourselves in right now with higher mortgage rates, fewer sales, and inventory that is inching higher but remains far from abundant, working with a Realtor who understands your local market conditions and has experience navigating challenging markets is paramount.”

For all property types, the sales-to-active listings ratio for February 2023 is 23 per cent. By property type, the ratio is 16.8 per cent for detached homes, 30.1 per cent for townhomes, and 25.8 per cent for apartments.

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,123,400. This represents a 9.3 per cent decrease over February 2022 and a 1.1 per cent increase compared to January 2023.

Sales of detached homes in February 2023 reached 514, a 49.1 per cent decrease from the 1,010 detached sales recorded in February 2022. The benchmark price for detached properties is $1,813,100. This represents a 12 per cent decrease from February 2022 and a 0.7 per cent increase compared to January 2023.

Sales of apartment homes reached 928 in February 2023, a 49.9 per cent decrease compared to the 1,854 sales in February 2022. The benchmark price of an apartment property is $732,200. This represents a three per cent decrease from February 2022 and a 1.6 per cent increase compared to January 2023.

Attached home sales in February 2023 totalled 366, a 34.6 per cent decrease compared to the 560 sales in February 2022. The benchmark price of an attached unit is $1,038,500. This represents a 6.3 per cent decrease from February 2022 and a 1.8 per cent increase compared to January 2023.

GET THE FULL REPORT