Market Update 07/07/22

Greater Vancouver experienced its fourth slowest June over the past twenty years, with sales coming off 35%. In Fraser Valley, sales fell for the third straight month down 43% to an over twenty year low, most notably in Surrey (-57%), Abbotsford (-54%), and Langley (-42%). The sales-to-active listings ratio reduced to 23%; 14% for detached homes, 32% for townhomes, and 30% for apartments.

As per Daniel John, Real Estate Board of Greater Vancouver Chair: “We’re seeing downward pressure on home prices as we enter summer in Metro Vancouver due to declining home buyer activity, not increased supply.” While lower prices are welcomed, sales activity drying up to twenty year lows doesn’t bode well for new housing supply absorption, nor developers launching projects into a downward trending market. Apparently 45 projects in the Greater Toronto Area have now been canceled or put on hold. Mike Stewart, a presale specialist, had the following to say about what opportunities lie ahead in the presale segment:

Currently there are not many incentives for presale buyers.
Continuing interest rate rise should cause further market softening. Expect this softening to bring on more presale purchase incentives in the near future.
In the next 3-12 months, as presale incentives become large & widespread, purchase a presale (completing 1-3 years from time of purchase) with a big incentive at a time of bad economic news and high rates.
Rising rates should bring down inflation, allowing the BoC to reduce rates within the next 1.5 years.
Complete your presale in a low or falling interest rate environment.
Lower and falling rates tend to put upward pressure on real estate prices and sales volume.
Rents tend to rise more than they fall and are ratcheted up by inflation.

Interest Rate Hikes and Your Mortgage

Angela Calla from Dominion Lending Centres on how the Bank of Canada interest rate hikes affect your mortgage:

"As Canada’s lending prime has increased, variable rates increase as these rates are tied to prime. Payments need to increase to ensure the scheduled amortization remains the same. Hence you will still pay off your mortgage as the original amortization shows. For those individuals on a fixed-mortgage, you will not be affected by these interim changes outside of renewing your mortgage. If your mortgage is up for renewal, you will likely be renewing at a higher rate depending on your lender. If you’re still six months away from renewing, it may be a good idea to look into the options for early renewal to avoid getting caught up in another interest rate hike later this year. All rates, fixed or variable, are expected to rise over the summer months. You can lock in an interest rate for 90-120 days while you plan your next step whether it is renewing, purchasing or planning for changes."

Headlines

Interest rate hikes can't be only way to tame inflation
Government should target corporate profits, says economist David MacDonald.
UBC Okanagan’s downtown Kelowna tower shimmers in amber
UBC Okanagan is moving forward with plans for a new location in downtown Kelowna, designed by Vancouver-based HCMA Architecture + Design.
No Return Ticket
China’s crackdown on freedoms in Hong Kong drives out a generation. A new exodus settles in Vancouver for good.

Featured Listings

6.39 Acres in Port Coquitlam

Listed for $2,895,000

House & blueberry farm. 2,689 sqft. house with 5 bedrooms and 2.5 bathrooms. There are 2 buildings 1,400 sqft. and 850 sqft. approx. 1.25 acres planted in Duke and Century variety Blueberry. Great location to build your dream estate with a private dead end road, park like setting and walking distance to Pitt River. Close to all amenities and entertainment, easy access to Highway #7.

Portside in Queensborough

Portside is a family focused community of 170 townhomes and duplexes located in the historic heart of Queensborough in New Westminster. Offering two to four bedroom homes ranging from 1,182 sf – 1,780 sf, complete with a community riverwalk and daycare centre, Portside is designed to meet the needs of today’s diverse family dynamics. Access to the Q2Q ferry is just minutes away, connecting homeowners to local restaurants, the River Market and other amenities found in downtown New Westminster.

2 and 3 bedroom condos in Collingwood

Frame by Coromandel Properties and Peterson Group. Located 10-minutes walking distance to 29th Ave Station, Frame is your first opportunity to buy in Vancouver's most connected and convenient neighbourhood. The D1 Homes feature 1,035 sqft. of indoor space, with the 2nd and 3rd bedrooms fit for a queen-size bed. There’s plenty of outdoor space including south-facing balcony with unobstructed views of Norquay Park. Access to over 12,000 sqft. of indoor and outdoor amenities, including two rooftop patios, entertainment lounge, fitness centre, and parcel delivery rooms.

MLS® Listings

Condos · Houses · Rentals · Land · Sold

Your referrals are greatly appreciated.
Who do you know that is thinking about buying or selling real estate anywhere in the world?
Please send them my way, I would love to help.

Thank you for your time today.
Contact me with any questions you may have, I am always available.

Adam Naamani
REALTOR® with eXp Realty

+1 (604) 889-7943

adam.naamani@exprealty.com

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