October 2022 residential home sales in Greater Vancouver decreased 45.5% from last year to 1,903—running at levels last seen in 2008, yet with half the inventory. The total number of homes currently listed in Metro Vancouver is 9,852, a 22.6% increase from October 2021. Detached homes had the lowest sales-to-active listings ratio at 14.3%, followed by townhomes at 21.6%, and apartments at 23.2%. New home sales were down 72% year-over-year in the third quarter of this year, the lowest count since 2012.

The composite benchmark price for all properties has decreased by 9.2% over the last six months. In 2023 we will continue to see massive price reductions, mortgage rates creeping higher before sticking, and a wave of new listings after sellers realize the sooner they sell, the more equity they keep. Now the Canadian Government has increased its immigration targets with a new goal of 500K per year by 2025. Where we plan to house those people remains to be seen but with a new Premier and Mayor with a renewed focus on housing, hopefully, that narrative will begin to change.

Public Auction of Lands for Taxes

Every November the City of Vancouver holds a public auction called the “tax sale”, where properties with three years of unpaid property taxes are offered for sale. Apparently, only 1% of the properties are transferred to the successful bidders, as the owners have a one-year redemption period to rescue their property by paying the tax man.

I attended this year, and if you’re looking for a deal, this probably isn’t the best place. Though it is possible to get lucky. The City official goes down the list of properties by their folio number, and bidding starts with the “upset price”. Bidders compete with one another by calling out their “surplus bid”. The surplus bid must increase by increments of at least $1,000, and of course, there are the cheeky ones that try numbers like $6,666.66. Or the one-upmanship of repeatedly trying to beat the other bid by the lowest possible increment, which ultimately encourages someone to push the price up into the stratosphere.

Akin to the property value appreciation we saw in the housing market in 2021, it’s relatively common for the starting price (upset price) to start in the thousands, and work its way up into the millions. I would rather take my chances buying property the traditional way, actually performing due diligence with proper conditions, a viewing and negotiation, but to each their own.

It is advised to perform as much research as possible on the property prior to bidding on it, as the City of Vancouver makes no representation expressed or implied as to the condition or quality of the properties offered for sale. This auction list is posted on the City’s website vancouver.ca/taxsale and is updated intermittently, but removed once the auction starts. If you would like to check out the auction, it is open to anyone without registration on a first come first serve basis, and takes place November 2nd at Vancouver City Hall.