September 2022 Market Stats

Hey Everyone

Hope you’re all doing great and enjoying this late summer we’ve been having !

I know for a lot of you it’s been that first week of school and you’re EXHAUSTED (lol I know we are with our little guy!!!) But hopefully, things have settled down for a lot of you and you’re enjoying a more normal schedule and routine by now!

Speaking of NORMAL…this market has continued to be ANYTHING BUT NORMAL as you’ll see below!

While in August we saw a very sharp and clear drop in home prices coupled with a RECORD-LOW sales volume (Second lowest in 21 years) – in September we saw more of a mixed bag!

So starting with Average Home Prices in the Fraser Valley; We saw prices mostly fluctuate around +/- 4% to 7% with many areas appearing somewhat flat! The interpretation of this data when you analyze it is that there seems to be a bit more variability in home sale prices and things seem more volatile depending on where you go! Many areas went down a bit more than that range, ( -10% Langley Condos/Townhomes) Then there was one big outlier (which can be explained when you compare the relatively low volume and type of home) that saw as much as a 38% increase (Mission Condos/Townhomes, but they ONLY 8 & 9 total sales each month so it’s a poor sample size).

Next we have the Sales Volume and we can see nearly every area fell again in volume with only a few exceptions. There was on average a 20%-30% decrease in sales in the majority of areas, (with Delta Detached Homes falling by 34%, Condos/Townhomes by 53%) while very few areas saw an increase (Langley Detached Homes sold 11% more).

What does this mean for YOU ?!

Well, this last month feels like more of a friendlier “pit stop” than the tougher month we had in August – so that’s a good thing!

On the other hand, though, we of course have the Bank of Canada’s next Interest Rate Announcement on Wednesday, October 26, where many major outlets have already reported sources indicating a likely 0.5% (50 basis points) increase. We already remember the PTSD of the first 5 interest rate hikes!…and for those keeping track, you’ll also know the Federal Reserve just raised rates for a 5th time, as did the Bank of England just to name a couple of major countries.

Summary:

If you’ve been reading my other updates you’ll know I’ve been forecasting a continual price drop in home prices until likely the end of 2023 to the beginning of 2024 (see last month’s market update email). I’ll let you read those updates for more details on my full forecasting and why but simply put, we could be facing one of the largest housing (and overall asset) bubbles in our lifetime based on many, many, many measurable economic metrics and while I hope desperately that it won’t be as bad, I also feel like these are the times where you want to be best – prepared.

If you’re considering buying/selling/investing and want to know more about what the right move is for you – please reach out and give me a call/text/email any time! Things have gotten quite complicated in the past couple of years and you’ll want to get a great understanding of the market before making a decision to buy or sell any Real Estate. Some of our clients have a great net advantage right now with their current transactions (They are saving more on their new place than they are losing on their old place etc) while others are in the exact opposite situation, and it’s best to know where you fit in!

As always, hope you found this helpful, and feel free to reach out any time via email/call/text !

Cheers

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