With the 2 hours of sunny weather last week, I couldn't resist the opportunity to play around with my drone. Shots taken from the location of our 860 Wilson new townhouse development.
I am adding this weekly look at the market to give you first hand look a the change of new homes, solds, and price reductions.
The Association of Interior Realtors publishes a quarterly report on the real estate market. This week even though its a month late we are going to take a look at it.
The slowdown in real estate really was emphasized in March and April when they increased the interest rates, the image below doesn't really show you much of a change however, the total dollar volume in the 1st quarter was down from 2021 by 2.4%, considering a record year last year, the graph does not show it but the change in volume for physical amount of sales was down 22.7% from last year. I find it interesting that there was 22.7% less sales but the overall dollar volume was only 2.4% lower, meaning values are up substantially for what sold compared to last year.
The report shows a fairly substantial change of investors in the market and compared it to first time home buyers. The fact that the amount of investors at 19% is trending up is a bit surprising. With the rapid increase in property values, unless the property is vacant many properties that have existing rentals do not cashflow, will have to watch this closely as it could be signals of an overleveraged market if this trend continues.
The out of market buyers has shifted in the last 2 years, roughly speaking 50% of buyers are from within the region, we are seeing the trend increase from Lower Mainland, which I don't think is much of a surprise, one area to watch though is Alberta, with a red hot market there, we might be seeing more red plates.
The next 2 graphs show an example of supply and demand and the effect on pricing. The lower the supply, normally the prices will increase when demand is the same or greater. With inventory however, showing signs of increasing the price plateau appears to be on its way, but it likely is still to early to know how long, or if it will last, or frankly if we will see a decrease.
Let me know if there is anything I can do for you!
Have a great week and feel free to reach out with any questions!
Personal Real Estate Corporation
Coldwell Banker Horizon Realty
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