Greater Vancouver home sales were down 53% in November 2022 on a year-over-year basis—37% below the 10-year November sales average. The sales-to-active listings ratio is 17.6%; 13.2% for detached homes, 19.7% for townhomes, and 20.8% for apartments. New MLS® listings were down 23% over November 2021 and 24% from October 2022. The composite benchmark for all residential property types is $1,131,600, representing a 10% decrease over the last six months. It’s basically a buyer’s market as prices have been falling month over month since the spring, but rising immigration and a shortage of listings could be a precursor to renewed price escalation despite the inflationary environment and elevated mortgage rates.

The Bank of Canada increased its policy interest rate by 50 basis points on Wednesday to 4.25%, as the housing bear market continues. It’s important to note the Governing Council’s verbiage in their most recent announcement as they "will be considering whether the policy interest rate needs to rise further", as opposed to "rates would have to go higher". Since Canada’s central bank infamously stated in 2020 "you can be confident that interest rates will be low for a long time", its rate has increased seven times this year, the fastest pace of rate hikes since inflation targeting began in the 90s. The new retail bank prime goes to 6.45% and the new average HELOC to 6.95%—quite the difference in comparison to March of this year when the HELOC rate was at 2.95%.

BC Assessment is bracing homeowners for an increase in their upcoming property assessments, expecting about a 5-15% increase in assessed values come January. Assessments are based on July 1st, and since we know the real estate market has changed drastically since then, the assessment will likely be higher than what the current market value might be at the time. The increase in a property’s assessment doesn’t necessarily mean property taxes go up, as they are only affected if you are above the average for your community. The assessed value isn’t an accurate indication of what a home is worth, especially since it’s based on an algorithm, calculated only once a year, and there is no inspection, however, it’s telling when the province’s assessment authority recognizes how rapidly values have shifted in a matter of months.