Welcome to the June 2024 episode of the Presale Pulse, a real estate show brought to you by hosts Suzana Goncalves and Brittany Reimer. Watch the video to understand the latest macroeconomics, presale, 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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Bank of Canada Rate Cut Signals Shift for Greater Vancouver Real Estate
The Bank of Canada announced a rate cut of 25 basis points in May, marking an important shift after enduring a prolonged period of rate hikes over the last two years. While this move may not single-handedly revive the market, it signifies progress and serves as a morale booster for buyers, sellers, and developers. The decision reflects the central bank's acknowledgment of ongoing inflation concerns but also indicates a willingness to address economic conditions. Looking ahead, key metrics such as CPI and employment numbers will be closely monitored to gauge potential future rate adjustments.
Over 2,200 Units Launched Amid Market Pressures in Presale
May saw a surge in presale activity, with 19 projects launching, offering over 2,200 units, a notable increase compared to the previous year. Despite challenging market conditions and lower same-month absorptions, developers faced pressure to bring projects to market, driven by factors like high holding costs, construction timelines, and competitive pressures. While absorptions remained modest, the upcoming rate cut announcement by the Bank of Canada could potentially stimulate demand in the future, influencing buyer behavior and market dynamics.
May's Resale Market Sees Subdued Demand and Growing Supply
The resale market experienced subdued demand in May, with sales 20% below historical levels. Concurrently, active listings increased by 20%, reflecting a growing supply of available properties. Despite these shifts towards a more balanced market, prices remained resilient, showing moderate increases month-over-month and year-over-year. Sellers exhibited patience, refraining from panic selling, and recognizing the potential for demand to rebound in the future, indicating a stable market sentiment amidst changing conditions.
Presale Projects mentioned in this episode:
- Nido by Wanson Group
- Port Haven by North Star
Links mentioned in this episode:
- June 2024 Presale Pulse Report
- MLA Advisory Services and Sample Reports
- Contact Advisory
- Subscribe to MLA Newswire
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