Market Highlights For August 2023

  • Bank of Canada holds prime rate at 5% but keeps door open to further hikes

  • Median price of a West Side detached house up $1 million in past year

  • Total new listings have been falling, month-over-month, since May

  • East Vancouver is leading all markets in detached house sales

  • South Delta detached houses are moving to a buyer’s market 

It is a sad commentary on the Greater Vancouver housing market when buy and sell decisions hinge more on minuscule interest rate moves than on the pragmatic needs of consumers. But that is what is happening. Two more consecutive Bank of Canada rate hikes in June and July – at 0.25% each – were enough to drive August housing sales down to the lowest level in six months and stall a rally in new listings, which fell 16% from a month earlier.

The Bank of Canada held the prime rate at 5% at its September 6 setting, but any confidence was dashed as the Bank warned that it would not hesitate to jack rates higher if the economy – and the housing market – began to heat up again.

The best advice for buyers is simply to take today’s higher lending rates into the equation and do the best to negate them. It is clear the Bank of Canada is failing, failing to admit it overshot on rate increases over the past year and trying to maintain the illusion it knows what it is doing.

Those considering purchasing a home between now and the next Bank of Canada scheduled rate hike announcement on October 25th should secure a pre-approved 120-day mortgage and talk to a mortgage professional about the best rate and term. 
 
However, buyers and sellers should not be blinded by interest rate fluctuations. It is likely, considering the economic damage already done, and political pressure, that Bank of Canada rates will not increase again this year. Instead, buyers should concentrate on property values and sellers on matching their price to the market.

Buyers cannot ignore the investment dynamics this year. In the past six months, as both sales and listings fell, prices have continued to increase. The August 2023 benchmark price, at $1,208,400, is $65,000 higher than in March of this year. The benchmark detached house price was up $156,000 to $2,018,500 in the same period and the typical condo apartment price increased by nearly $40,000 while townhouse benchmark prices have risen 5% since March to $1,103,900. But August benchmark prices across Greater Vancouver were down 0.2% from July 2023 and strata prices have barely budged in three months.

A key reason for a lack of new listings is universally higher prices that have frozen sellers in place and lower rates they currently have on mortgages. A look at the 20 Greater Vancouver markets shows that the August benchmark price varies very little from Bowen Island ($1.41 million) to the Westside of Vancouver ($1.34 million) or from East Burnaby ($1.19 million) to Ladner ($1.17 million). The potential of pocketing a healthy dividend when moving within the region is diminished, persuading many potential sellers to stay put.

It currently feels like a market waiting for an excuse to buy mixed with a reluctance to sell. Growing pent up buyer demand may be the best way to explain the status of the market. But without any increase in listings, it makes it difficult for that pent up demand to release. And there’s little to suggest we’ll see any increase in supply.

Banks are working with homeowners to keep mortgages funded – one option is allowing 30-year amortizations – and many with lower rate mortgages are unwilling to dive into the high interest rate pool and make a move. Expect that when the mortgage climate changes to more favourable buyer conditions, sales levels will increase in a significant way. The number of new listings in August was 6% below the 10-year average and has been falling, month-over-month, since May. This has kept it a seller’s market with only a 4-month supply of listings available – even with the low sales levels. This is going to keep the overall inventory of listings at two thirds the level they should be to get to balance or to favour buyers.

The bottom line is that September, often a bellwether month for sales, could ring in a traditional market rally, especially with no further increase in lending rates. This is the time for buyers and sellers to take advantage of the upturn.

If you are considering a sale, it is better to list now before fall competition increases. For those looking to buy, the current price stability offers a short-time opportunity.

Greater Vancouver numbers for August 2023

There were a total of 2,296 sales in August, down 6% from July and 23% fewer than in June 2023, but up 21% from August of 2022. Active listings were 10,082 at the end of August, compared to 10,099 at that time last year and 10,301 at the end of July. New listings in August were down 16% compared to July 2023, but up 19% compared to August 2022. Despite a rally over the past six months, overall prices have stabilized. The composite home price in August, at $1,208,400, was up just 2.5% from August 2022, though 27.6% higher than in August of 2020. With a tight supply and a sales-to-listing ratio of 57% in August, Greater Vancouver remains in a seller’s market.

For other regions, contact Berna Yazgan.

Özlem Kırmızı
Özlem Kırmızı
2024-01-14
Yurtdışına ilk kez çıkacaktım ve Vancouver´da kızımın okuluna yakın bir ev arıyordum. İngilizcemin yetersizliği, Kanada’daki ev sahipleri ve gayrimenkul şirketlerinin Türkiye'den yazılan mesajlara cevap vermemeleri beni strese sokmuşken Berna hanımla tanıştım. Güleryüzü, işini severek yapması, tecrübesi, özveri ile saat farkına bakmadan her adımda bizi bilgilendirmesi bende güven oluşturdu. 1 hafta gibi kısa süre içersinde kızımın okuluna yakın standartlarımıza uygun evi buldu. Resmi işlemleri birebir irtibat halinde hallettik ve kanadaya gelmeden evimiz hazırdı. Berna hanıma emekleri için çok teşekkür ederiz.
Fuat Berk KIRLI
Fuat Berk KIRLI
2024-01-05
Ailece Vancouver’a taşınma kararı aldığımız sürecin başında, burada yapılması gereken hemen tüm resmi işlerin adrese bağlı olduğunu öğrenmemiz bizde ciddi endişe yarattı. Çünkü yerleşmek istediğimiz ve küçük oğlumuzu göndermek istediğimiz okulun bulunduğu bölgede evler görece eski ve sonradan öğrendiğimiz dezavantajlara sahipti. İşlerimiz devam ettiği için, burada bizim kabul, kriter ve beklentilerimizi karşılayan, en doğru evi bulacak ve bizim buradaki hem gözümüz hem burnumuz 😀olacak birine ihtiyaç vardı. Bu noktada Berna hanım özverili bir şekilde, saat farkına rağmen, tüm seçenekleri birer birer yerinde bize göstererek çok yardımcı oldu. Hem doğru evin bulunması, hem de ev sahibi ile ilgili resmî işlerin takibi ve bilgilendirme sürecini onunla beraber sorunsuz olarak tamamladık. Kendisinin bilgi birikimi, ilişki yönetimi, ve doğru değerlendirmeleri bize bu süreçte çok önemli bir yol gösterici oldu. Vancouver a hayatını taşımayı düşünen ve ev kiralama ihtiyacı olacak herkese, Berna hnm ile çalışmalarını tavsiye ederiz. Bu süreçleri tek başınıza yüklenmeniz yorucu, zaman alan, bazen yanıltıcı olabilir diye düşünüyoruz. Bu anlamda, kendisine destek ve yönlendirmeleri için çok teşekkür ederiz.
Furkan Demirbay
Furkan Demirbay
2023-12-31
Berna hanım ile çalışmak harikaydı.Bizi en doğru şekilde yönlendirdi ve çok hızlı bir şekilde en güzel evi bulduk😊 Sayesinde yeni yıla yeni evimizde giriyoruz. 🙂
Basak Gorgun
Basak Gorgun
2023-11-29
Kanada’ya tasinma karari aldigimizda bizi en korkutan sey ev bulmanin zorlugu ve sureciydi.Yogun arastirmalara girdigim donemde Berna ile yollarimiz kesişti.Onun yonlendirmeleri sayesinde arama bolgelerimizi genişlettik kriterlerimizi revize ettik derken Bingooo Hayalini kurdugum bolgede tam da istedigim gibi bir evimiz var artik 💜 Sayesinde hayatimiza 1-0 onde basladigimizi hissediyorum:) Gönülden tavsiye ederim🙏 isini gerçekten iyi yapan insanlara denk gelmek zira gunumuzde cok zor .. Herkese bol sans
Wifak Tayeb
Wifak Tayeb
2023-10-10
Our experience with Berna finding a home was wonderful, Berna is so professional and detail oriented, she helped us rent a home while we were outside Canada, Thanks to her the process were very smooth and easy. We highly recommend her professional service
İsmail Yıldız
İsmail Yıldız
2023-10-06
We met Mrs. Berna with the suggestion of our friends. It was the most important part of our house finding process that started when we were still in Istanbul. It has come to a different place in our hearts with its constant support of positive energy and its very fast response to every question at any moment, if it is not even related to the finding home. You can establish this sincerity with very few people without seeing each other from 10000km away. This makes Berna very valuable to us. We felt his friendly attitude once again when we set foot in Vancouver, with the fact that he carried out our house finding process from beginning to end, taking us from that house to that house, directing the most suitable houses that can make us happy in terms of price performance. We would like to thank and strongly recommend Mrs. Berna, who provided us with all kinds of support in our home finding process.
Mehmet Can KAYA
Mehmet Can KAYA
2023-09-03
Not only she find us perfect home really quickly, she also gave us so many informations about Canada itself. She understands our needs and must-haves and rapidly find us places. We will definitely call her again before buying a house 🙂
Pelin Ayhan koc
Pelin Ayhan koc
2023-09-02
Settling down in a new country and finding a rental, especially in a place like Vancouver, can be incredibly challenging. However, Berna made this process remarkably easy for us. With her expertise and thoughtful consultations, I never felt lost or isolated. I was really worried to find a place that is pet friendly however thanks to Berna, we found our dream home in Vancouver. Working with her has been a joy, and She was my lucky charm in this new city. She did not just find us a home but also consult us how to settle and live in Vancouver. We wholeheartedly believe people who work with Berna will find their place to call home. ☺️
Edin Karabulut
Edin Karabulut
2023-07-03
Kanada’ya ayak basmadan, bize kiralık daire buldu. Çok calıskan, ilgili, günün her saati bize bilgilendirme yaptı. Simdi Kanada’dayız ve evimizdeyiz. Kesinlikle tavsiye ediyoruz.
G B
G B
2023-06-26
Berna is a great consultant. We were very worried as we came from Turkey. It was very valuable for us to feel your support regarding our concerns and expectations. She did a great job helping us rent the house we wanted. Thank you for helping us get off to a good start in our new life.

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