Where is the BC Real Estate Market Moving?

When looking at the real estate market moving, we typically rely on experts and those working in the industry to understand which way. However, currently it seems that even if you don’t have a friend or family member in real estate, you still know which way the market is going. Why is that?

Market Factors

What are the primary factors affecting the current market. Is it the supply of listings being added to the market? Is it the increasing mortgage rates? The weather? Of course, it isn’t, it’s summer, it may be hot but I have never heard anyone wish for snow or rain on moving day. So, let’s talk about the other factors.

Supply of Listings

This is a lesser-known real estate factor for the everyday person. However, it is quite pivotal. Listings in July via the Fraser Valley MLS were in the high 1400s, while August has already seen almost 1300 listings in the first few weeks. By comparison, this outpaces last years August 2021 numbers in the lower 1200s. Now, how does this compare to the sales of these listings. In August 2021, sales were almost identical in the low 1200s. In July 2022 we have seen something vastly different, sales in the low 500s. This is almost one third of the supply that was listed. August is looking similar, on pace to hit one third in the listing to sales comparison. If this should continue, we can only assume listings may start to pile up and the time to sell may increase.

Real Estate Market Moving: Potentially Lower.

Mortgage Rates

With the current publicity, and the impact this has on many of us each month when the payment comes due, most of us may understand the basics of this factor. Yet, we may not know just how quickly this factor is becoming more important in how it impacts the market. Mortgage rates were as low as 2.45% this February. In only a few months, we experienced rate hikes to a July prime rate of 4.70% with further increases being mumbled about. If you think this factor will keep pushing the market down in the coming months, you may be right.

Real Estate Market Moving: Potentially Lower.

Market Impacts

Of the two factors discussed, one well known (Mortgage Rates) one not so well known (Supply of Listings), both are seemingly reducing housing prices across the Lower Mainland. With mortgage rates continuing to increase, we can only hope we don’t see a flashback to the 1990s and a peak rate of 14.75%. If you are trying to decide if you should list your home or if you should buy a home under these conditions, reach out to me right away. I will work with you to put together a Stanley Cup winning Gameplan, to win the biggest purchase or sale of your lifetime.

Real Estate Professional: Matthias Alleckna

If you want more information about the real estate market moving and your homes current value, don’t hesitate to message me. Matthias Alleckna on Facebook or Instagram. As your local real estate professional for White Rock, Surrey and the entire Lower Mainland I am happy to lend you my expertise. Check in every week on the website blog for more engaging content.