Happy New Year! We hope you had a relaxing holiday season with friends, family and lots of delicious food.  

G|B Real Estate Newsletter #3 features a 2021 market recap in addition to some upcoming 2022 Vancouver Real Estate Market predictions and advice. You can also click down below on the attached video which will provide you with an overview of the information found in this edition of our newsletter. 

Keep scrolling down to find a detailed overview on Vancouver Real Estates most popular neighbourhoods from December 2021. 

If you have anymore questions or would like to chat further about your own Real Estate journey don’t hesitate to reach out.

2021 Market Recap


 

We would like to start this months newsletter with a large scale synopsis covering the themes we witnessed in Vancouver’s 2021 real estate market as a whole.

Home sales in Metro Vancouver reached a record high in 2021. We saw a total increase of 42.2 percent compared to 2020 and 73.6 percent compared to 2019. The 43,999 homes sold in 2021 also broke 2015’s all-time sales record of 42,326.

Why did we see such dramatic increases across Metro Vancouver? There are many different factors that played a role in this lift, a major one being the pandemic. Increased time spent at home pushed residents to focus more on what they want in their homes. In addition, attractive low interest rates, increased household savings due to isolation, and more flexible work arrangements helped to foster this uptick in residents assessing their housing needs and options.

During 2021 steady listing activity did not keep pace with high buying demand which forced home prices to increase dramatically throughout the year. By the end of December we witnessed an all time inventory low for the past 30 years. The increase in home values and low mortgage rates led property owners to refinance their mortgages, using the new equity in their properties to renovate, consolidate debt, and even purchase more property. Leading to not only an increase in demand for principal residences but also an increase in demand for investment properties. Thus, sellers were generally very successful in selling their properties for higher than expected prices.  However, when those same sellers went to purchase their next property they found themselves in highly competitive situations with other buyers.

2022 Market Predictions


 

The start of 2022 will likely see the same patterns continue as demand continues to soar and inventory dips into all time lows. We can expect to see prices continue to climb until housing supply begins to meet housing demand. In addition, another round of business shutdowns will likely cause interest rates to remain low. Even if interest rates do begin to rise we don’t predict that it will have much influence over market prices as seen in June 2021 when the government raised the stress rate and market values continued to climb. As such, many buyers are being priced out of their first choice of property and/or area.

To rectify this, expectations need to change and the importance of getting into the market needs to be prioritized. Therefore, the advice we would like to pass-on is that when you are ready to buy it is important to make a move and not to sit on the fence.

Due to the current competitive nature of Vancouver’s Real Estate Market, an alternative option we suggest to our buyers is pre-construction/ presale properties. This isn’t necessarily the best option for everyone but it can reduce the stress of competing situations in the resale market. With any development you want to get in early. As this is when the best prices will be. We can help you see if this is the best option for your situation and also explain how you would get financed for a project like this. We know a few programs that can get you approved today instead of waiting right before the project completes. Get in touch with us and we can go into more detail.

An additional option to look into this new year is refinancing. We highly encourage you to speak with your mortgage broker or speak with our team to see whether or not refinancing your mortgage makes sense for you. This will allow you access to the equity you already have in your property for a safety net, renovation, or investment opportunity.

It is important to remember that similarly to 2021, 2022 will not see the exact same patterns occur across every property type, location, neighbourhood and price point. Therefore, as a buyer and/or seller make sure you gather specific market information as it pertains to your property or the property you’d like to purchase.

Reminder, that the news is a snapshot and oftentimes not the full story. Contact us and we will be more than happy to provide you with the information you need to make the best real estate choices for 2022.

December Market Snapshot

Attached Properties

 

Vancouver Downtown – Attached

  • Sellers market at 33% sales ratio average (3.3 in 10 homes selling rate).
  • Sale to List Price Ratio: homes are selling on average 100% of list price
  • Inventory: down by 30% over last month.
  • Most Active Price Band: $500,000 to $600,000 with average > 100% sales ratio (Sellers market).
  • Buyers Best Bet: homes minimum $5 mil, Coal Harbour and minimum 4 bedroom properties.
  • Sellers Best Bet: selling homes in Westend and up to 1 bedroom properties.
Vancouver Westside – Attached
  • Sellers market at 43% sales ratio average (4.3 in 10 homes selling rate).
  • Sale to List Price Ratio: homes are selling on average 100% of list price.
  • Inventory: down by 31% over last month.
  • Most Active Price Band: $600,000 to $700,000 with average 100% sales ratio (sellers market).
  • Buyers Best Bet: homes between $2.25 mil to @2.5 mil, Dunbar, Point Grey, South Granville and 3 bedroom properties.
  • Sellers Best Bet: selling homes in Fairview, Kitsilano and up to 1 bedroom properties.
Vancouver Eastside – Attached
  • Sellers market at 67% sales ratio average (6.7 in 10 homes selling rate).
  • Sales to List Price Ratio: homes are selling on average 2% below list price.
  • Inventory: down by 35% over last month.
  • Most Active Price Band: $300,000 to $600,000 with average >100% sales ratio (sellers market).
  • Buyers Best Bet: home between $800,000 to $900,000, South Vancouver and 3 bedroom properties.
  • Sellers Best Bet: selling homes in Fraser and up to 1 bedroom properties.

 

Detached Properties

 

Vancouver Westside – Detached

  • Balanced market at 17% sales ratio average (1.7 in 10 homes selling rate).
  • Sales to List Price Ratio: homes are selling on average 3% below list price.
  • Inventory: down by 24% over last month.
  • Most Active Price Band: $2.5 mil to $2.75 mil with average 53% sales ratio (sellers market).
  • Buyers Best Bet: homes minimum $7.5 mil, Marpole, Shaughnessy and minimum 7 bedroom properties.
  • Sellers Best Bet: selling homes in Kerrisdale, Quilchena, South Cambie and 3 to 4 bedroom properties.
Vancouver Eastside – Detached
  • Sellers market at 32% sales ratio average (3.2 in 10 homes selling rate).
  • Sales to List Price Ratio: homes are selling on average at 4% above list price.
  • Inventory: down 23% over last month.
  • Most Active Price Band: $1.5 mil to $1.75 mil with average >100% sales ratio (sellers market).
  • Buyers Best Bet: homes between $3 mil to $3.5 mil, Collingwood, Killarney and up to 2 bedroom properties.
  • Sellers Best Bet: selling homes in Fraserview, South Vancouver and 5 to 6 bedroom properties.

North Vancouver – Detached

  • Sellers market at 72% sales ratio average (7.2 in 10 homes selling rate).
  • Sale to List Price Ratio: homes are selling on average 7% above list price.
  • Inventory: down by 38% over last month.
  • Most Active Price Band: $1.75 mil to $2 mil with average >100% Sales Ratio (Sellers market).
  • Buyers Best Bet: homes between $3 mil to $3.5 mil, Central Lonsdale and up to 2 bedroom properties.
  • Sellers Best Bet: selling homes in Canyon Heights, Lynn Valley and 5 to 6 bedroom properties.

West Vancouver – Detached

  • Balanced market at 16% sales ratio average (1.6 in 10 homes selling rate.)
  • Sale to List Price Ratio: homes are selling on average 5% below list price.
  • Inventory: down by 30% over last month.
  • Most Active Price Band: $3 mil to $3.5 mil with average 29% sales ratio (sellers market).
  • Buyers Best Bet: homes minimum $7.5 mil, British Properties, Chartwell, Queens and minimum 7 bedroom properties.
  • Sellers Best Bet: selling homes in Bayridge, Dundarave and up to 2 bedroom properties.

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