April 2023 Greater Vancouver Real Estate Market Insights
Welcome to the April 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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Financial Volatility and market uncertainty in the Wake of Silicon Valley Bank Collapse
The financial system has been experiencing significant volatility due to factors such as changes in interest rates and liquidity issues faced by banks like Silicon Valley Bank. This has resulted in wild fluctuations in the bond market and interest rate forecasts. The difficult financial environment is not just limited to banks but is also affecting other industries, such as real estate. Developers who acquired assets in a low-interest environment are now struggling to operate and steer their operations while holding costs are increasing significantly. Despite the potential for rate cuts, there are still many unknowns, and the situation remains volatile.
Strong Presale Activity in Metro Vancouver Signals Improving Market Conditions and Exciting Launches Ahead
The Vancouver presale market is showing signs of improvement, with strong sales and absorption rates in March, especially in larger tower and wood frame programs. Perla was a standout program, with 110 deals by the end of the month. April and May are expected to be important months for the Vancouver presale market, with 14 programs actively marketing and preparing to come to market over the next two months. Some of the notable programs include Portwood in Port Moody, Citizen by Anthem, and Sequoia in Surrey. The decrease in launch activity in the Fall and Winter months has allowed active programs to absorb remaining inventory and make way for new projects coming to the market. Feature projects this month are Soto on W28 by Forme Development, and Nolita by Fifth Ave Properties.
Benchmark Pricing Inches Up
The real estate market is showing signs of recovery with increasing resales transactions and a steady increase in benchmark pricing, a positive industry trend. Interest rates have also stabilized and come down, leading to restored stability and confidence in the market. However, despite these positive trends, the market is still not as competitive as it has been in the past and is approximately 28% below the 10-year season average. The market's supply side remains depressed, with low inventory levels and a 35% decrease in new listings year-over-year. This is due in part to homeowners hesitating to list their homes when there are few options to purchase elsewhere, creating a circular reference. Additionally, people may be hesitant to list their homes if they believe the market is at its bottom and they could sell for higher prices. However, the supply is expected to catch up as the market continues to warm up.
Pre-sale Projects mentioned in this episode:
- Soto on W28 by Forme Development
- Nolita by Fifth Ave Properties
- Portwood by Edgar Development
- Perla by Polygon
- Citizen by Anthem
- Sequoia by ML Emporio
Links mentioned in this episode:
- April 2023 Pre-Sale Pulse Report
- MLA Advisory Services and Sample Reports
- Contact Advisory
- Subscribe to MLA Newswire
Subscribe to the MLA Canada YouTube Channel or find the Pre-Sale Pulse on your favourite audio streaming platform: Apple, Spotify, Amazon Music, iHeart Radio
