For Buyers

Greater Vancouver real estate market update for April 2023

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

 

The real estate market is currently experiencing a shortage of available inventory, which is causing a decline in seller interest in listing their properties. This is primarily due to the increase in borrowing costs, which has made it difficult for sellers to qualify for the same mortgage amount as in the past. Additionally, the stress test, which determines whether borrowers can afford mortgage payments at higher interest rates, has contributed to the decrease in inventory.

As a result of the lack of available inventory, there has been a slight increase in prices, and multiple offers are becoming more common. Many buyers who have been waiting on the sidelines are now ready to enter the market, but there are not enough properties to meet the demand. While statistics may not paint the full picture, current indicators suggest that prices are unlikely to decrease and may even continue to rise slightly, which is worth noting for potential buyers.

In addition to the limited inventory in the real estate market, the rental market is also strong, particularly in Vancouver, which remains the most expensive city in Canada to rent. The average cost of a one-bedroom unit in Vancouver is $2640, while a two-bedroom unit costs $3632. Burnaby also ranks as the third most expensive city in Canada for rent, with one-bedroom units costing $2282 and two-bedroom units costing $3175.

This strong rental market can be attributed to the shortage of available properties for rent, causing demand to exceed supply, resulting in a competitive rental market. Landlords have the upper hand, and tenants often must pay a higher price for a desirable rental property. While this may not be ideal for renters, it does present opportunities for investors looking to purchase and rent out properties in these cities.

Overall, the current state of the real estate market is due to a combination of factors, including the rise in borrowing costs, the stress test, and the lack of available properties for rent. While this has led to a slight increase in prices, it is unlikely to be a dramatic change. However, those looking to buy or rent in Vancouver or Burnaby should be aware of the current state of the market and the high associated costs.

Are multiple offers back? – Greater Vancouver Real Estate Market Update March 2023

Oleg First time buyers, For Buyers, For Sellers, Market update, Videos

The Vancouver real estate market is experiencing a surge in multiple offer situations due to a low inventory of available properties. This trend is especially clear in a condo and the townhouse markets in Greater Vancouver. However, the current trend is different from the past as these multiple offers are much closer to the listing price. In the past, during multiple offer situations, properties would sell for 10 or even 20 percent over the listing price.

The Vancouver real estate market has been one of the hottest and most competitive markets in North America for the past several years. The city’s picturesque location and robust economy have attracted many buyers, making it difficult for many first-time homebuyers to enter the market. This situation has been exacerbated by a low inventory of available properties.

The low inventory of available properties has created a competitive environment for buyers, and as a result, multiple offer situations have become more common. In a multiple offer situation, several buyers make an offer on the same property, which can drive up the price. However, in the past, during these multiple offer situations, the price would often exceed the listing price by a significant margin.

Today, the situation is different. Buyers are still making offers on the same properties, but the offers are much closer to the listing price. This trend is likely due to several factors. Firstly, buyers are becoming more educated and savvy about the market. They are aware of the risks of overbidding and are therefore more cautious. Secondly, historically high interest rates makes it much harder to qualify for mortgages.

The shift towards more reasonable offers is a positive development for both buyers and sellers. Buyers are more likely to get the property at a fair price, while sellers can sell their property without worrying about overpricing or underpricing.

However, the competitive environment created by the low inventory of condos and townhouses is still present, and multiple offer situations are still happening. Buyers need to be prepared and do their due diligence before making an offer. They should have a good understanding of the market and the value of the property. It’s also important to work with a reputable real estate agent who can guide them through the process.

In conclusion, the Vancouver real estate market is experiencing a surge in multiple offer situations due to a low inventory of available properties. However, the current trend is different from the past as these multiple offers are much closer to the listing price. This is a positive development for both buyers and sellers and is likely due to increased education and transparency in the market. Buyers should still be prepared for a competitive environment and do their due diligence before making an offer.

 

3 ways to make money in the current slow real estate market in Vancouver.

Oleg Articles, For Buyers, For Sellers, Tips

The Vancouver real estate market has been experiencing a slowdown in recent years due to high interest rates. However, smart investors are taking advantage of these conditions to make strategic investments and maximize their returns. In this article, we’ll explore three ways that smart investors are taking advantage of the slow Vancouver real estate market conditions due to high interest rates.

  1. Buying pre-sale properties

One way smart investors can take advantage of the slow Vancouver real estate market conditions due to high interest rates is by purchasing pre-sale properties. Developers are often willing to offer pre-sale properties at a discounted rate during slow market conditions, which can provide an opportunity for investors to secure a property at a lower price.

By purchasing a pre-sale property, investors are also hopping for a lower interest rate in future. This can be particularly advantageous during a slow market when interest rates are high, making it difficult to qualify for a mortgage or afford a mortgage payment.

Investors should be aware of the risks associated with pre-sale properties, including potential delays in construction or changes in the real estate market. Thorough research and due diligence are essential before making a pre-sale property investment.

  1. Upsizing

Another strategy smart investors are using in the slow Vancouver real estate market conditions. By purchasing a larger property and selling their smaller one, investors can take advantage of the equity built in the current property as well as lower prices on the bigger property.

For example, you own a townhouse and would like to upgrade to a house. On average detached properties in Vancouver have seen a bigger depreciation as opposed to townhomes. If you were thinking of upsizing already then upsizing in the slow market can be a great opportunity to do so.

Investors should carefully consider the costs associated with upsizing, such as higher property taxes, property transfer taxes, maintenance costs, and potential renovation expenses. Thorough research and due diligence are essential before making an upsizing investment.

  1. Rental properties for long-term investment

Finally, smart investors are taking advantage of the slow Vancouver real estate market conditions due to high interest rates by investing in rental properties for long-term investment. High interest rates can make it difficult for some people to qualify for a mortgage, leading to increased demand for rental properties.

By purchasing a rental property in a slow market, investors can take advantage of lower property prices and potentially higher rental income. Over time, as interest rates decrease and property values increase, investors can realize significant profits from their rental property investment.

Investors should be aware of the risks associated with rental properties, including maintenance costs, tenant turnover, and potential vacancies. Hiring a property manager to handle day-to-day management tasks can help to mitigate some of these risks.

In conclusion, the slow Vancouver real estate market conditions due to high interest rates are providing opportunities for smart investors to make strategic investments and maximize their returns. By purchasing pre-sale properties, upsizing their properties, or investing in rental properties for long-term investment, investors can build long-term wealth. However, as with any investment, thorough research and due diligence are essential to avoid potential pitfalls. Working with a knowledgeable investment advisor can help to ensure that investors make informed decisions and maximize their returns in the slow Vancouver real estate market conditions.

What you NEED to know about Vancouver’s real estate market in February 2023

Oleg For Buyers, For Sellers, Market update, Statistics

 

Over the past year, interest rates have surged significantly, and the average 5-year variable rate is now around 6.45%. In comparison, just a year ago, the rate was at 1.6%. The increase in interest rates has led to a considerable increase in monthly mortgage payments, where on a $400,000 mortgage, the payment has increased from $1,617 to around $2,667. As a result, the real estate market has been slowed down considerably.

In January 2023, the real estate market witnessed 55.3% fewer transactions compared to January 2022. The market was so slow that it was 42.9% slower than the ten-year average for January, which is typically a slow month for real estate transactions. The increase in interest rates has led to a considerable rise in monthly mortgage payments, making it challenging for buyers to afford new properties.

Despite the market slowdown, prices have not dropped as much as anticipated. Detached houses have seen a 9.1% decrease from January 2022, while apartments have only decreased by 1.1% since last year. More surprisingly, apartments have gone up by 1% in the last month, and there are differing opinions on what may have caused this phenomenon.

Rentals.ca reports that Vancouver remains the most expensive city in Canada for rent. The average cost of a one-bedroom unit is $2596 per month, and a two-bedroom unit rents for an average of $3562. Given these high rental prices, it is unsurprising that many people prefer to invest in the real estate market, despite the high interest rates.

Looking ahead, the Bank of Canada may be ready to pause further interest rate increases. If this happens, and the interest rate stabilizes, we might see a lot of activity in the real estate market in the spring. As a result, if you have been considering purchasing a property, this could be a good time to make a move.

In conclusion, the rise in interest rates has had a significant impact on the real estate market, slowing it down considerably. Nevertheless, it is not clear whether this trend will continue, and the market may pick up in the coming months. As a result, it is crucial to keep a close eye on the market and make informed decisions before making any significant purchases.

Real estate market update for October 2022

Oleg For Buyers, For Sellers, Market update, Statistics

Let’s talk about the new September market statistics and what we can learn from them. 

The market is much slower than usual at the moment. There are fewer sales across the board. About a 35% drop in over all transactions as compared to 10 year average. This is a fairly significant slow down. 

Think about how much more real estate has been built over the last 10 years. Right now there are fewer sales even though the total number of real estate units is constantly increasing. 

How significant this impact is depends on the type of real estate we look at and the price point. 

For example detached houses have a sales to active listings ratio of about 12%.  Meaning 12 out of every 100 houses available were sold in September. As far as apartments go the situation is a quite a bit different a sales to active listings ratio is about 21%. Which is almost double of that of the detached properties. 

I think the evidence of this in my everyday work. 1 bedroom and studio units are still selling well. The demand and the prices did come down a bit but there is still a health amount of buyer activity for those starter homes. From personal experience I find the there aren’t as many speculative investors in the market right now. However buyers looking for a place to live are still active in this 1 bedroom and studio units category.   

If you are looking to sell your 1 bedroom or a studio unit are likely to receive a healthy amount of interest. 

The same can not be said for detached properties. Especially luxury market. From my experience the demand is not there and those properties take much longer to sell.

As far the prices are concern there is a drop. The board is reporting about a 2% price drop from August. I think that’s about in-line with my experience. 

The primary cause of this market slow down and the price decrease are of course higher interest rates. Bank of Canada did once again raise their benchmark interest rate in September which definitely slows down the market. 

Buyers aren’t able to borrow as much money as the stress test rate at the moment is ridiculously high. All of this creates quite a bit uncertainty for the future.

If you’re a seller my advice to be patient. And be realistic with your prices. 

If you’re a buyer be ready. Have all of your down payment and pre-approval ready. Good opportunities to pop-up on the market. But they also disappear just as quickly. You want to put yourself in a position to take advantage of such opportunities. 

I hope you will find this video helpful. Feel free to share this video with anyone who you think will find it useful. 

If you’re in the market you might be interested in my monthly real estate newsletter. Here is a link: Real Estate Insider Newsletter

Thanks for reading.

Link to Real Estate Board of Great Vancouver statistics.

Top 5 Tips for the Greater Vancouver Real Estate Buyers in the Fall of 2022

Oleg First time buyers, For Buyers, Videos

If you’re a buyer in greater Vancouver area in the fall of 2022 I have some good news for you. The market seems to be in your favour. You probably have heard of crazy bidding wars, subject free offers and real estate selling for well over the asking price. At the moment the market is slower and this could present a great opportunity to buy. This doesn’t mean that you should buy. That part is really up to you. In this post I am hopping to provide you with 5 tips that would make your buying experience smoother. 

 1. Get a mortgage pre-approval 

I know you’ve probably heard this tip a hundred time already. But it’s more relevant than ever before. First of all the interest rates have been on the rise. By getting a mortgage pre-approval you can lock-in current interest. This is especially valuable if interest rates go up in the future. Second reason why you want to get a mortgage pre-approval is knowing how much you can borrow. Maybe you’ve gotten a mortgage pre-approval a few months ago, and you’re hopping to be approved for the same mortgage amount. Unfortunately with rising interest rates you might be surprised how much your borrowing power is being effected. Chances are you will qualify for a lower mortgage amount than before witch in turn will dictate your real estate budget. 

So before going out there and looking for real estate you should get a mortgage pre-approval. 

 2. Take your time looking. Start early. Get some experience.

When the market was really active buyer felt a lot more pressure to buy quickly. If you waited to long there was a chance to get priced out of the market. Places that used to cost $500,000 now cost $550,000 and some buyers simply couldn’t afford such price increases. 

The story is different now. The market for the most part is flat in some cases the prices are even declining. Which is a good news for the buyers. Now you can take your time looking for that perfect property that hits most of your requirements. There isn’t as much urgency behind trying to buy something quickly. In this type of market buyers usually have more choices and are overall more satisfied with their purchases. 

 3. Don’t drag your feet. Trying to time the market is impossible. When you see something that you like be ready to pull the trigger. 

This might seem counter intuitive to the previous point but let me explain. Because, there is less urgency to buy sometimes buyers can fall into the trap of thinking “what else is out there?”. I like this unit and it hits everything in our criteria but “what else is out there?” or “maybe a better unit will come to the market next week?”. Sometimes people are trying to time the market perfectly and buy at the lowest price possible. But that’s impossible. If there was a way to time the market perfectly that would be fantastic but unfortunately there isn’t. 

I’ve seen this happen so many times especially with firs time buyers. They find a place that they really like but they fall into the trap of thinking that there might be a better unit out there. Or maybe the prices will go down even lower. We would not make an offer on the unit that buyers really like and the unit would sell to someone else. Months would go by and a similar unit would not come up again. 

Don’t rush to buy but also don’t drag your feet. If the unit that you really like and hits most of your criteria is available take action quickly and secure it. You don’t know when another similar unit will come up for sale. 

 4. Negotiate. And know what places are going for. You don’t want to be unreasonable. But in a current market buyers can score some great deals.

Because the market is a bit slower at the moment you, as a buyer, have more leverage to negotiate and try to lower the price. Of course you have to be reasonable but now is the time to try to negotiate. It’s important to know what is the current value of the property you’re interested in. Sometimes sellers might be unrealistic and they want to sell their property for the prices from 8 months ago. It’s crucial for you and your real estate agent to do the homework and to figure out a fair market value for the property. 

 5. Make sure to do your inspections and document reviews. Because the market is slower buyers have the ability to review documents properly and to order an inspection. 

Slower market means that subject free offers are almost non-existent. Most offers that I see today include conditions: such as subject to financing, subject to reviewing strata documents, subject to inspection, subject to insurance and a few others. Don’t be hesitant to include the subjects that work in your favour, subjects that would allow you to perform due diligence. I would especially recommend to carefully read strata documents if you’re buying a strata unit. And don’t be afraid to ask many questions. Pay attention to potential or current problems with the building and make sure to review insurance information. 

I hope you will find those tips useful. Feel free to share this post with anyone who you think will find it useful. And good luck with your search. 

If you’re in the market you might be interested in my monthly real estate newsletter. Here is a link: https://www.myvancouverproperty.ca/insider

Thanks for reading:)

Burnaby BC detached housing market update for August 2018

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

MLS Home Price Index

MLS Home Price Index for the detached houses in Burnaby in August 2018 (see graph below)

Burnaby East: $1,269,200 | -3.9% (change since August 2017)

Burnaby North: $1,501,200 | -5.8% (change since August 2017)

Burnaby South: $1,621,000 | -5.6% (change since August 2017)

Average Sales Price

Average Sales Price of the detached houses in Burnaby in August 2018 (see graph below)

Burnaby East: $1,384,823 | -0.4% (change since August 2017)

Burnaby North: $1,749,432 | +1.2% (change since August 2017)

Burnaby South: $1,765,238 | -2.2% (change since August 2017)

Average Percent of Original Price

Average Percent of Original Asking Price of the detached houses in Burnaby in August 2018 (see graph below)

Burnaby East: 96.1% | +0.1% (change since August 2017)

Burnaby North: 94.4% | -1.2% (change since August 2017)

Burnaby South: 90.3% | -2.9% (change since August 2017)

Total Inventory

Total Inventory of the detached houses in Burnaby in August 2018 (see graph below)

Burnaby East: 67 | -5.6% (change since August 2017)

Burnaby North: 218 | -7.2% (change since August 2017)

Burnaby South: 254 | -6.3% (change since August 2017)

New Listings

All New Listings of the detached houses in Burnaby in August 2018 (see graph below)

Burnaby East: 11 | -47.6% (change since August 2017)

Burnaby North: 53 | -30.3% (change since August 2017)

Burnaby South: 47 | -35.6% (change since August 2017)

Total Sales

Sales of the detached houses in Burnaby in August 2018 (see graph below)

Burnaby East: 7 | +75.0% (change since August 2017)

Burnaby North: 22 | -31.3% (change since August 2017)

Burnaby South: 12 | -58.6% (change since August 2017)

Sales to Actives Ratio

Sales to Active Listings Ratio of the detached houses in Burnaby in August 2018 (see graph below)

Burnaby East: 0.104 | +85.7% (change since August 2017)

Burnaby North: 0.101 | -25.7% (change since August 2017)

Burnaby South: 0.047 | -56.1% (change since August 2017)

Burnaby 1 bedroom and studio condos market update for August 2018

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

Home Price Index

Home Price Index for condo units in Burnaby in August 2018 (see graph below)

Burnaby East: $782,800 | +6.8% (change since August 2017)

Burnaby North: $650,900 | +15.0% (change since August 2017)

Burnaby South: $717,800 | +10.9% (change since August 2017)

Average Sales Price

Average Sales Price for one bedroom and studio condo units in Burnaby in August 2018 (see graph below)

Burnaby East: $531,500 | +12.5% (change since August 2017)

Burnaby North: $470,105 | -0.2% (change since August 2017)

Burnaby South: $491,673 | +6.3% (change since August 2017)

Average Percent of Original Price

Average Percent of Original Asking Price for one bedroom and studio condo units in Burnaby in August 2018 (see graph below)

Burnaby East: 93.8% | -5.2% (change since August 2017)

Burnaby North: 98.1% | -6.7% (change since August 2017)

Burnaby South: 98.0% | -5.9% (change since August 2017)

Average Price Per Square Foot

Average Price per Square Foot for one bedroom and studio condo units in Burnaby in August 2018 (see graph below)

Burnaby East: $824 | +11.8% (change since August 2017)

Burnaby North: $723 | +2.3% (change since August 2017)

Burnaby South: $821 | +12.3% (change since August 2017)

Total Inventory

Total Inventory for one bedroom and studio condo units in Burnaby in August 2018 (see graph below)

Burnaby East: 6 | -62.5% (change since August 2017)

Burnaby North: 35 | +52.2% (change since August 2017)

Burnaby South: 77 | +75.0% (change since August 2017)

New Listings

New Listings for one bedroom and studio condo units in Burnaby in August 2018 (see graph below)

Burnaby East: 2 | -77.8% (change since August 2017)

Burnaby North: 24 | -11.1% (change since August 2017)

Burnaby South: 39 | -17.0% (change since August 2017)

Sales

Total Sales for one bedroom and studio condo units in Burnaby in August 2018 (see graph below)

Burnaby East: 2 | -50.0% (change since August 2017)

Burnaby North: 20 | -33.3% (change since August 2017)

Burnaby South: 26 | -36.6% (change since August 2017)

Sales to Actives Ratio

Sales to Active Listings Ratio for one bedroom and studio condo units in Burnaby in August 2018 (see graph below)

Burnaby East: 0.333 | +33.2% (change since August 2017)

Burnaby North: 0.571 | -56.2% (change since August 2017)

Burnaby South: 0.338 | -63.7% (change since August 2017)

Vancouver BC housings market update for August 2018

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

MLS Home Price Index

MLS Home Price Index of detached houses in Vancouver BC in August 2018 (see graph below)

Vancouver East: $1,529,200 | -2.3% (change since August 2017)

Vancouver West: $3,278,500 | -10.3% (change since August 2017)

Average Sales Price

Average Sales Price of detached houses in Vancouver BC in August 2018 (see graph below)

Vancouver East: $1,595,193 | -0.4% (change since August 2017)

Vancouver West: $3,377,478 | -22.0% (change since August 2017)

 

Average Percent of Original Price

Average Percent of Original Asking Price of detached houses in Vancouver BC in August 2018 (see graph below)

Vancouver East: 94.9% | -2.6% (change since August 2017)

Vancouver West: 89.0% | -6.9% (change since August 2017)

Total Inventory

Total Inventory of detached houses in Vancouver BC in August 2018 (see graph below)

Vancouver East: 849 | +4.0% (change since August 2017)

Vancouver West: 821 | -2.0% (change since August 2017)

New Listings

New Listings of detached houses in Vancouver BC in August 2018 (see graph below)

Vancouver East: 172 | -17.7% (change since August 2017)

Vancouver West: 165 | -15.8% (change since August 2017)

Total Sales

Sales of detached houses in Vancouver BC in August 2018 (see graph below)

Vancouver East: 58 | -49.6% (change since August 2017)

Vancouver West: 59 | +13.5% (change since August 2017)

Sales to Actives Ratio

Sales to Active Listings Ratio of detached houses in Vancouver BC in August 2018 (see graph below)

Vancouver East: 0.068 | -51.8% (change since August 2017)

Vancouver West: 0.072 | +16.1% (change since August 2017)

1 bedroom and studio units real estate market update for August 2018 in downtown Vancouver

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

Home Price Index

Home Price Index for condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: $1,186,300 | +17.4% (change since August 2017)

Downtown VW: $700,100 | +0.6% (change since August 2017)

West End: $667,100 | +2.5% (change since August 2017)

Yaletown: $912,700 | +6.8% (change since August 2017)

Average Sales Price

Average Sales Price of one bedroom and studio condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: $759,750 | +5.2% (change since August 2017)

Downtown VW: $683,508 | +4.9% (change since August 2017)

West End: $569,472 | -0.5% (change since August 2017)

Yaletown: $729,947 | -3.3% (change since August 2017)

Average Percent of Original Price

Average Percent of Original Asking Price of one bedroom and studio condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: 94.5% | -6.0% (change since August 2017)

Downtown VW: 97.3% | -5.5% (change since August 2017)

West End: 95.9% | -7.1% (change since August 2017)

Yaletown: 97.8% | 0.0% (change since August 2017)

Average Price Per Square Foot

Average Price Per Square Foot of one bedroom and studio condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: $1,200 | -0.1% (change since August 2017)

Downtown VW: $1,115 | +1.6% (change since August 2017)

West End: $907 | -6.5% (change since August 2017)

Yaletown: $1,204 | +5.1% (change since August 2017)

Total Inventory

Total Inventory of one bedroom and studio condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: 16 | 0.0% (change since August 2017)

Downtown VW: 118 | +81.5% (change since August 2017)

West End: 46 | +9.5% (change since August 2017)

Yaletown: 47 | +67.9% (change since August 2017)

New Listings

New Listings of one bedroom and studio condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: 16 | 0.0% (change since August 2017)

Downtown VW: 118 | +81.5% (change since August 2017)

West End: 46 | +9.5% (change since August 2017)

Yaletown: 47 | +67.9% (change since August 2017)

Total Sales

Sales of one bedroom and studio condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: 4 | -63.6% (change since August 2017)

Downtown VW: 41 | -37.9% (change since August 2017)

West End: 18 | -43.8% (change since August 2017)

Yaletown: 19 | -20.8% (change since August 2017)

Sales to Actives Ratio

Sales to Active Listings Ratio of one bedroom and studio condo units in downtown Vancouver in August 2018 (see graph below)

Coal Harbour: 0.250 | -63.7% (change since August 2017)

Downtown VW: 0.347 | -65.8% (change since August 2017)

West End: 0.391 | -48.7% (change since August 2017)

Yaletown: 0.404 | -52.9% (change since August 2017)