MARKET UPDATE FOR MARCH 2022:
We saw more homes come onto the market in February, as homeowners moved to get a jump on the spring market and take advantage of the un- precedented demand and high prices.
With more homes to choose from, Buyers could be a little more selective and perhaps a little more cautious in their approach. We started seeing conditional offers again, at closer to asking price, rather than subject-free offers way above list price.
Many homes still sold within a few weeks, and many still received multiple offers, but not to the same extent that they had in preceding months.
Although it’s early days to make a prediction, this may be the start of a subtle shift away from the extreme conditions of the Seller’s market we’ve seen since the early days of Covid-19.
Even so, the Seller’s market will likely continue through 2022. Persistent demand from Buyers has created a market that is continually under-supplied.
Rising interest rates will affect Buyers’ borrowing power moving forward, and that should moderate price growth somewhat, but with the ongoing high demand and low supply, prices will continue to rise.
The Real Estate Board of Greater Vancouver expects prices to go up by an average of nine percent for all property types in 2022; 13 percent for detached homes, townhouses are expected to increase by 9.5 percent and condos by eight percent.
My advice to people who do want to sell is don’t wait too long. If you act now you may be able to ride the end of the extreme Seller’s market.
Buyers should keep an eye on interest rates. Even a one-percent hike in rates will reduce the amount you can borrow by up to 10 percent. Current global uncertainty may drive interest rates higher than predicted, so consider buying sooner rather than later.
On an interesting note, we’ve seen a shift in the typical Buyer.
As first-time Buyers and millennials get priced out of the market, an increasing number of people who already own homes are becoming Buyers, as they leverage their equity to purchase additional properties for investment purposes.
Hopefully some of them are purchasing to help their kids, the would-be first-time Buyers.
Whether Buying or Selling, let me put my experience to work for you.