Crisis In Vancouver's Real Estate Market? Update For November 2021.

The Government announced proposed new legislation for BC real estate in the Spring of 2022. I discuss why this will be bad for both sellers and buyers in this month's video. Check it out and let me know your thoughts on this issue.

This is your Vancouver real estate market update for November 2021.

Hey, everyone. I’m Craig Veroni with RE/MAX Masters Realty. I’m your local real estate agent here in Vancouver, BC. In today’s video, I’m going to cover what’s happened in the Vancouver real estate market through the month of October, what might be coming that could affect that market.

I shoot a ton of videos about what it’s like to live, love, and own here in Vancouver so, if you haven’t yet, please hit that subscribe button, and don’t forget to click on that bell so you can be notified immediately when I have a new video out. I really want you to be able to stay up to date on all the latest tips and insights into the Vancouver real estate market so you can become an expert too.

Alright, let’s get into it. October sales saw a 5.2 percent decrease from the sales recorded in October 2020 and an 11 percent increase from the homes sold in September 2021. Last month’s sales were 22.4 percent above the 10-year October sales average.

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,034. That’s a 35.3 percent decrease compared to October 2020 and a 13 percent decrease compared to September 2021. In October, the overall supply of homes for sale dipped to levels not seen in three years.

So, through the month of October sales increased by 11% month-over-month while inventory shrunk by 13% over the same time period.

As you can see, buyer demand continues to outpace supply causing housing prices to continue edging upward and ensuring that multiple offer situations persist. Rising fixed mortgage rates should eventually help ease demand, but for now, sales remain strong and buyers with rate holds will remain motivated to find a property for the rest of the year.

Home price trends will vary depending on property type and neighbourhood, so it’s important to take a hyperlocal look at your location and property category of choice before making a home buying or selling decision.

If you want to stay on top of the market, whether you’re buying or selling a home, knowledge is key and the Snap Stats market reports are a fantastic way to arm yourself with tons of knowledge on your market area.

To download the full market reports simply click on the images below to get the Metro Vancouver, Greater Vancouver, or, Fraser Valley reports.

If you’re watching this on Youtube, down in the description section is a link to a sample report which I send to my clients on a monthly basis. Feel free to review that and if it’s something you find of value, and trust me you’re going to love these reports, you can simply fill out your name and email address to start receiving the reports monthly.

What’s Coming?

The NDP government announced on November 4th that it plans to introduce legislation in the Spring of 2022 for resale and newly built homes. What does this all mean for sellers, buyers, and the BC real estate market in general? This is another misguided attempt at government intervention in the BC real estate market and is completely unnecessary. The government claims it is trying to protect buyers yet they are completely missing the mark and will ultimately create more problems for both buyers and sellers. The government has also arrived at this decision without any consultation from the real estate industry or other industry professionals. Sound familiar? Christie Clark did the same thing during an election as a knee-jerk reaction to a situation that had already been correcting itself for 3 months prior.

The market is the way it is because we are seeing some of the lowest inventory levels in decades. The market doesn’t need government intervention and buyers don’t need the government trying to protect them when purchasing a home. Our job as real estate agents is to work in the best interest of our clients and protect them throughout the transaction. Is this kind of market frustrating for buyers? Yes! It’s even more frustrating for the agents working for those buyers. The government feels that this cooling-off period will allow buyers to do their due diligence or simply walk away from an offer if they feel they’ve made the wrong decision. That is the whole point of having subjects in a contract. Now the government's position is, well there are too many people being forced to make subject-free offers. There will always be buyers willing and wanting to make subject-free offers. Are there huge risks associated with doing so? Absolutely, but, it is always up to the buyer to decide what their risk tolerance level is and how they’d like to proceed. I don’t think any government should dictate how a seller should be able to sell their home or how a buyer can purchase it.

In order for a buyer to make an offer on a property at the moment, they have to be pretty sure that is what they want to do. The subject removal period is there for buyers to conduct their due diligence and gives them a way out of the contract if one of those subjects isn’t met. The government’s proposal would allow any buyer to back out simply because they changed their mind. How is this fair to a seller? Buyers may also be emboldened to make offers on numerous properties while only intending to pick one of them or perhaps even none of them if another property comes along that they feel looks better. The ramifications of this kind of policy will negatively impact sellers and the buyers it is intended to protect.

As a listing agent, I do everything I can to ensure that buyers and their agents have everything they need, including sufficient time, to do their due diligence prior to an offer presentation date. When I’m working for buyers I certainly appreciate those agents who do so as well. If an agent and their buyers have worked their butts off to get a pre-inspection on the property done, get their lender to do an appraisal, and perhaps read all relevant documents prior to the offer presentation date so that they can present a subject-free offer with minimal risk, why should they not be allowed to do so?

One of the biggest issues I see in markets like this is listing agents not allowing enough time for showings or due diligence prior to their offer presentation date. How frustrating is it to see a new home hit the market only to be told you and your buyers can only view it for 15 minutes over a 1 or 2 day period, if you’re lucky, and then they will be reviewing offers? There are so many things that can be done to make the home buying and selling process better but this kind of government intervention is not one of them.