Hello this is Sandra Solomon with Sutton 1st West Realty
It's time for the monthly market update
April's real estate market eased down
buyers are becoming very careful when entering the market
How will the market go in coming months
Let's take a look at the data
Sales in April were 3,232
25.6% lower than March
A 34% drop from last year's peak in April 2021
Although sales in April 2022 decreased
Sales were still 1.5% above the 10-year April sales average
Total listings was 8796, 15.3% higher than March 2022
This is normal as we are entering the Spring market
Let's take a look at months of inventory (MOI), this is an important indicator
showing how many months it would take to digest the listing in the market
April's MOI was 2.7, the highest in the last 4 months
January's MOI was 2.5, thus April has the highest MOI with 2.7
indicating it is still a seller's market right now
Generally speaking, a balanced market has 4 to 6 MOI
It is a buyer's market when it is above 6
It is now 2.7, lower than 4, thus it is still a seller's market
Let's take a look at the benchmark price. The Benchmark price was $1,374,500
Although sales decreased, the benchmark price increased by 1%
Let's take a look at the sales comparison
All property types decreased
The number of listings increased
The number of listings of single-family homes increased by 14.3%
Townhomes increased 21.2%, apartments increased 14.5%
The Sales to active listing ratio in general was 36.7%
meaning on average, 1 was sold for every 3 listings
For single-family homes, 1 was sold for every 4 listings
For townhomes and apartments, 1 was sold for every 2 listings
For the benchmark price
all property types increased by 1%
Let's talk about the market trend
April's market really eased down
Multiple Offer situations decreased
not to mention subject free offers
In my opinion, this is a healthier market
The cooldown enables buyers to have more time to study documents and inspect properties
a more thorough consideration can be made
therefore I feel this is a really good change
Many policies were introduced in April
The BC government introduced some policies that will be implemented in July that will help to cool the market
The federal government has also issued a bill to ban foreigners from buying investment properties in Canada
and it's been proposed that an extra 5% GST will be charged for assignments on presales.
Also, more money has been added to the budget for affordable housing construction
with all kinds of policies, as well as the increasing interest rate
the market is now digesting the new information
therefore now is like a transition period where people stop to think about their next step
I think now is a good time to enter the market
because some of the sellers have already bought another property, and they must sell the one they are living in right now
in order to get the money back and invest in their next property
So there are some relatively affordable properties on the market right now
Not all listings are getting multiple offers
Some didn't receive any offers
So if you would like to enter the market, now is good time
for those who would like to upsize or downsize their properties, this is also a good opportunity to do so
As you can take some time to make a good decision
So I think this is a healthier market
I feel the upcoming market will be more stable
It is a matter of fact that there is not enough land in Vancouver
and the housing supply can not catch up with its demand
Therefore I think the market will be more stable giving more time to buyers
Some nicely located high-quality properties have not been affected much
If you would like to find some relatively affordable properties, contact me now
Contact me by using the form below if you have any questions.
I will get back to you
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See you soon, bye bye