Our current real estate market is trending towards a buyer's market as many buyers are remaining on the sideline perhaps waiting for more significant cuts to the Bank of Canada rate.
I believe the Financial Post had the best headline about the recent interest rate reduction by the Bank of Canada and its impact on the BC real estate market: "Bank of Canada's June rate cut was like bringing a butter knife to a gunfight." If anything, buyers seem more reluctant to enter the real estate market this past month, although it could simply be the beginning of the summer real estate slowdown.
Open house activity appears to be declining in early July, but this is typical for the holiday weekend due to all the other activities happening. We do expect a continuation of a slow market until the next rate announcement on July 24th as borrowers ride out an interest rate that is 3% higher than the 20 year average.
Open house activity appears to be declining in early July, but this is typical for the holiday weekend due to all the other activities happening. We do expect a continuation of a slow market until the next rate announcement on July 24th as borrowers ride out an interest rate that is 3% higher than the 20 year average.
NEW RESIDENTIAL TENANCY RULES
If you plan to sell or buy a tenant-occupied property, it's important to understand the changes our provincial government is implementing. The new tenancy eviction timeline will take effect on July 18th.
This change may create challenges with financing, as most approvals and rate holds are for 90 days, not 120 days.
Changes Effective Immediately
1. Ban on Personal Occupancy Evictions:
This change may create challenges with financing, as most approvals and rate holds are for 90 days, not 120 days.
Changes Effective Immediately
1. Ban on Personal Occupancy Evictions:
- Applies to rental buildings with five or more units.
- Requirement extended from six months to 12 months.
- Rent cannot be increased due to minor occupants being added.
- Landlords cannot serve frivolous notices to end a tenancy.
1. Mandatory Use of New Web Portal:
- Landlords must use this portal to generate Notices to End Tenancy for personal or caretaker use.
- A Basic BCeID is required to access the site.
- The portal will require details about the new occupants, which will be shared with the tenant.
- Landlords will receive information about the conditions for ending a tenancy and the penalties for ending a tenancy in bad faith.
- Information about the compensation landlords must pay to tenants when ending a tenancy will also be provided.
- The Two-Month Notice is changing to a Four-Month Notice.
- Tenants will have 30 days to dispute Notices to End Tenancy, extended from 15 days.
- The individual moving into the property must occupy it for at least 12 months.
- Landlords found to be ending a tenancy in bad faith could be ordered to pay the displaced tenant 12 months’ rent.
LINK to the BC Government's site.
We are still grappling with the implications of these changes. Where some may welcome this, it will create complications in many different circumstances which I'm not sure were taken into account when these changes were drafted.
GVR (Formerly REBGV): MARKET SHIFTING IN BUYER'S FAVOUR, THOUGH HESITATION REMAINS
Metro Vancouver1 home sales registered on the MLS® remained below seasonal and historical averages in June. With reduced competition among buyers, inventory has continued to accumulate to levels not seen since the spring of 2019.
The Greater Vancouver REALTORS® (GVR) reports that residential sales2 in the region totaled 2,418 in June 2024, a 19.1 per cent decrease from the 2,988 sales recorded in June 2023. This was 23.6 per cent below the 10-year seasonal average (3,166).
“The June data continued a trend we’ve been watching where buyers appear hesitant to transact in volumes we consider typical for this time of year, while sellers remain keen to bring their properties to market,” Andrew Lis, GVR’s director of economics and data analytics said. “This dynamic is bringing inventory levels up to a healthy range not seen since before the pandemic. This trend is providing buyers more selection to choose from and driving all market
segments toward balanced conditions.”
There were 5,723 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in June 2024. This represents a 7 percent increase compared to the 5,347 properties listed in June 2023. This total is 3 percent above the 10-year seasonal average (5,554).
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 14,182, a 42 percent increase compared to June 2023 (9,990). This total is 20.3 percent above the 10-year seasonal average (11,790).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for June 2024 is 17.6 percent. By property type, the ratio is 13.1 percent for detached homes, 21.1 percent for attached, and 20.3 percent for apartment
LINK to the June 2024 GVR statistics.
FVREB: FRASER VALLEY HOME SALES FALL DESPITE BANK OF CANADA CUT
The policy rate cut of 25 basis points by the Bank of Canada on June 5 was not enough to rally home sales in the Fraser Valley last month.
The Fraser Valley Real Estate Board recorded 1,317 sales in June, down by 13 percent over last month and by more than 30 percent over both last year and the 10-year seasonal average.
While sales remain soft, inventory continued to build for the sixth straight month to 8,350 active listings. Active listings increased 41 percent over June 2023 and are the highest they’ve been in five years. “With seasonally slow sales in June and a steady increase in inventory, we’d expect to see affordability improve,” said Jeff Chadha, Chair of the Fraser Valley Real Estate Board. “However, prices in the Fraser Valley remained relatively flat. That said, despite slow sales, properties that are well-priced are finding buyers, and are subsequently selling within three to four weeks.”
New listings dropped in June, down nine percent from May, to 3,418. With a sales-to-active listings ratio of 16 percent, overall market conditions are balanced. The market is considered balanced when the ratio is between 12 percent and 20 percent.
“The June rate cut hasn’t been enough to get buyers off the sidelines,” said FVREB CEO, Baldev Gill. “Current market conditions are such that buyers and sellers are advised to have thoughtful conversations with their REALTOR® and lending professional, rather than relying on media reports about where interest rates may be heading in the future."
LINK to the June 2024 FVREB statistics.
VIREB: WAITING IS THE THEME OF VIREB'S SUMMER HOUSING MARKET
The Vancouver Island Real Estate Board (VIREB) recorded 737 unit sales boardwide (all property types) on the MLS® System in June 2024. In the single-family category (excluding acreage and waterfront), 359 homes sold in June, down 15 percent from one year ago and 12 percent from May. Sales of condo apartments last month came in at 82, decreasing by 24 percent year over year and by 11 percent from May. In the row/townhouse category, 91 units changed hands in June, down eight percent from one year ago and 16 percent from May.
Active listings of single-family homes were 1,566 in June, an increase from the 1,105 posted one year ago. VIREB’s inventory of condo apartments was 440 last month, up from 319 in June 2023. There were 364 row/townhouses for sale last month compared to 274 the previous year.
Jason Yochim, VIREB Chief Executive Officer, says the market is behaving differently than during a typical summer, and the expected boost from the recent interest rate cut hasn’t materialized. “Buyers and sellers seem to be holding back and waiting for some sort of indication that it’s a good time to make a move,” says Yochim. “REALTORS® are conducting open houses and showings, but it’s decidedly more sluggish than we usually see at this time of year.”
Yochim notes that well-priced, high-quality properties continue to garner multiple offers, but REALTORS® are seeing more offers significantly below the asking price. “Inventory has risen considerably, and it’s been five years since active listings in the VIREB area were at this level, so buyers have more choice and more time to wait,” adds Yochim. “The same holds true for sellers, so there seems to be a waiting game going on."
The Vancouver Island Real Estate Board (VIREB) recorded 737 unit sales boardwide (all property types) on the MLS® System in June 2024. In the single-family category (excluding acreage and waterfront), 359 homes sold in June, down 15 percent from one year ago and 12 percent from May. Sales of condo apartments last month came in at 82, decreasing by 24 percent year over year and by 11 percent from May. In the row/townhouse category, 91 units changed hands in June, down eight percent from one year ago and 16 percent from May.
Active listings of single-family homes were 1,566 in June, an increase from the 1,105 posted one year ago. VIREB’s inventory of condo apartments was 440 last month, up from 319 in June 2023. There were 364 row/townhouses for sale last month compared to 274 the previous year.
Jason Yochim, VIREB Chief Executive Officer, says the market is behaving differently than during a typical summer, and the expected boost from the recent interest rate cut hasn’t materialized. “Buyers and sellers seem to be holding back and waiting for some sort of indication that it’s a good time to make a move,” says Yochim. “REALTORS® are conducting open houses and showings, but it’s decidedly more sluggish than we usually see at this time of year.”
Yochim notes that well-priced, high-quality properties continue to garner multiple offers, but REALTORS® are seeing more offers significantly below the asking price. “Inventory has risen considerably, and it’s been five years since active listings in the VIREB area were at this level, so buyers have more choice and more time to wait,” adds Yochim. “The same holds true for sellers, so there seems to be a waiting game going on."
LINK to the June 2024 VIREB statistics.