Greater Vancouver Real Estate Market Update 2022
In 2022 the most drastic changes were in the summer, specifically at the end of May, early June when interest rates jumped again. After the April hike of 0.50% most buyers had rates held for up to 90 days. So for buyers with approvals in March they would have to complete before June in order to keep that rate.
The period between April and July was hectic as buyers fought in multiple offers to not only secure a home, but secure a rate.
| Date* | Target (%) | Change (%) |
|---|---|---|
| December 7, 2022 | 4.25 | +0.50 |
| October 26, 2022 | 3.75 | +0.50 |
| September 7, 2022 | 3.25 | +0.75 |
| July 13, 2022 | 2.50 | +1.00 |
| June 1, 2022 | 1.50 | +0.50 |
| April 13, 2022 | 1.00 | +0.50 |
| March 2, 2022 | 0.50 | +0.25 |
Detached Homes saw the larges price changes
Detached homes sales continued to increase throughout 2022 as buyers raced to lock in mortgage rates. While most areas in the lower mainland were below their 1 year benchmark average, Port Moody remained 1.3% above 2021 sales for residential composite.
Largest changes in 1 year
Port Moody +1.3% with a benchmark price of $1,955,990.00
Sunshine Coast +1.95 with a benchmark price of $912,000
Burnaby North -0.5% with a benchmark price of $1,889,600
Townhomes holding their value
The larger the price tag the tougher it is when mortgage rates rise. In 2022 townhome prices held their value for most places overall.
Largest changes in 1 year ( 3 year change)
Burnaby North 5.2% with benchmark price of $860,8000 ( +24.2% )
Burnaby South 4.4% with benchmark price of $948,300 (+25.2%)
New Westminster 4.2% with benchmark price of $872,800 (+35.6%)
Port Moody with benchmark price of 2.7% $986,200 (+37.7%)
Apartments in Greater Vancouver held up during 2022
Apartments were a hot commodity in 2022 as first time home buyers raced to lock in rates. With apartments being the more affordable housing, a lot of millennials found themselves home owners with growing equity.
Largest changes in 1 year ( 3 year change)
Ladner +9.2% with a benchmark price of $670,400 (+34.6%)
Tsawwassen +7.2% with benchmark price of $695,100 (+23.5%)
New Westminster +4.6% with a benchmark price of $619,400 (+22.3%)
Port Coqutlam +5.2% with a benchmark price of $599,200 (+33.0%)
Coquitlam +2.6% with a benchmark price of $653,300 (+21.8%)
Where to invest in 2023?
My thoughts are always to look at where people are moving to – and where people want to live. With more and more families opting to work from home, living in areas that are not central have gained value. Not to say cities will decline in pricing, its to look at investment over the long term.
If you are looking to invest in real estate in 2023, there are a few key places I would continue to look at. With baby boomer retiring and millennials looking to buy, it’s a fine balance of seeing what each demographic wants. The larger home is not as affordable as it was 15-20 years ago, so buyers are being more creative. Living in a smaller home and enjoying more liquidity for vacations etc.
In 2023 employment rose by 394,000 which the globe and mail reports as driven by full-time positions, which jumped by 401,000. In December, the Bank of Canada indicated that the continual rate hikes were nearing an end as it shifted to a “data-dependent” approach to monetary policy. After reports on Friday’s strong jobs report, several financial analysts said the bank is poised to raise its policy rate again on Jan. 25.