Greater Vancouver home sales have slowed down: RE/MAX
Posted July 19, 2023 12:25 pm.
Home sales have slowed down in the Greater Vancouver area since the beginning of the year, according to a new report from RE/MAX.
The real estate company highlights the effect that higher interest rates have on the housing market in its latest publication.
RE/MAX says sales started out strong at the beginning of this year but started to slow down in mid-May.
“The surprising rate hike in June stymied an already slowing market and pre-approved buyers with rate holds ramped up their search for housing,” a news release said.
It adds that home sales are down 23 per cent in the first half of 2023, compared with the same period last year.
RE/MAX says if there are further interest rate hikes, that could also extend the slowdown.
“Just over 14,300 properties have sold, down just over 23 per cent from the 18,647 units sold during the same period in 2022. While benchmark prices have fallen short of year-ago levels, values have battled back to some extent over the past six months in Greater Vancouver, climbing eight per cent to $1,203,000 in June,” the release reads.
“The Greater Vancouver housing market is expected to see a seasonal slowdown in the coming months, with the market is forecast to pick up again in the fall,” RE/MAX adds.
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RE/MAX adds getting a spot in Vancouver’s suburbs has seen the highest demand, “with detached homes in the $1.2 million to $1.5 million price range most sought-after.”
It notes that the top factor home buyers are searching for in suburban areas is more space for family growth.
Some young families are making their home’s the Willoughby Heights and Walnut Grove neighbourhoods in Langley, the real estate company notes, as it’s within commuting distance to Vancouver.
More buyers are also heading to Maple Ridge as well, but the significant commute may pose a challenge for those looking to get between the city and the Vancouver area.
Others looking for more space for less money have also moved as far as Chilliwack and Mission, with RE/MAX citing some buyers having an easier time also getting a mortgage in these areas.
The company adds that sales are expected to pick up again in the fall, but adds that interest rates “will play a critical role moving forward.”
“If further rate hikes are implemented, the slowdown will likely be extended. However, if rates are paused or decline, home-buying activity in Greater Vancouver is expected to rebound once again,” the release adds.
