June 15, 2023 Greater Vancouver June 2023 Pre-Sale Pulse

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June 2023 Greater Vancouver Real Estate Market Insights

Welcome to the June 2023 episode of the Presale Pulse, a real estate show brought to you by hosts Ryan Lalonde and Suzana Goncalves. Watch the video to understand the latest macroeconomics, pre-sale, and resale trends over the last 30 days affecting the local real estate market across Metro Vancouver and the Fraser Valley. 

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Inflation Uptick and Bank of Canada Announcement Set Stage for Summer Real Estate Market

After months of decline, the most recent inflation report revealed a surprising uptick, a reminder that we are still in the midst of navigating recovery in the market. For buyers, this caused an immediate reaction in the bond markets and therefore in fixed mortgage rates. Additionally, The Bank of Canada recently announced a +25 basis point increase, contrary to expectations of no change. These factors paired with the usual Summer slowdown in the real estate market may cause the market to level off before moving into Fall. As homeowners face upcoming renewals, increased stress and the possibility of distressed selling could result in more inventory. However, for those with cash, this does mean there is still ample opportunity in the real estate market. 

Anticipated June Launches and Positive Absorptions Signal Promising Future 

May saw elevated presale activity, with sales gallery visits and sales flow remaining robust through the month. Demand suppression in the past year was primarily due to market uncertainty rather than interest rates. Transfer of wealth purchases, where parents buy homes and assets for their children, are increasing. Six presale projects launched this month, bringing just under 650 units to market. Same-month absorptions reached 40% - a new high in 2023. Discussions are underway about potential fall program launches. In June, eight presale programs are expected, introducing around 1,200 units. Notable projects include Komo by Strand, Earl, Silva 3, and Gardenia. The presale market in Metro Vancouver continues to gain traction, signalling a positive outlook.

Metro Vancouver Resale Market Shows Resilient Strength

The resale market in Metro Vancouver continues to show remarkable strength. May witnessed a significant increase in sales, with over 3,400 transactions recorded, marking a 24% rise from April. This surge in demand and sales has been consistent for the past four months, despite the low inventory environment. The market is expected to experience some relief as more listings come out. However, with higher interest rates and the upcoming summer slowdown, sales numbers may decrease in July and August. Overall, the resilience of the resale market suggests positive prospects in the real estate landscape.

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