December 2023 Vancouver Real Estate Market Update

Oleg First time buyers, For Buyers, For Sellers, Market update, News

As of December 4, 2023, Metro Vancouver is experiencing a notable surge in housing inventory, providing home buyers with the most extensive selection since 2021. The Real Estate Board of Greater Vancouver (REBGV) reports a 4.7% increase in residential sales for November 2023 compared to the same period in 2022, totaling 1,702 sales. While this represents a 33% decline from the 10-year seasonal average, the increase in active listings is contributing to more balanced market conditions.

Andrew Lis, REBGV’s director of economics and data analytics, notes that the growing number of active listings over recent months, coupled with the typical seasonal sales slowdown, is creating a more favorable environment for buyers. In November 2023, 3,369 properties were newly listed for sale, reflecting a 9.8% increase from the previous year.

The total number of properties listed for sale on the Multiple Listing Service® (MLS®) system in Metro Vancouver has reached 10,931, marking a 13.5% increase compared to November 2022. This is 3.7% above the 10-year seasonal average. The sales-to-active listings ratio for November 2023 is 16.3%, with variations by property type: 12.7% for detached homes, 19.8% for attached, and 18.2% for apartments.

Historical data analysis indicates that home prices may experience downward pressure when the sales-to-active listings ratio falls below 12% for an extended period. Conversely, sustained ratios exceeding 20% often lead to upward pressure on home prices.

Lis points out that the current market conditions, characterized by balanced supply and demand, are contributing to flatter price trends. Following a period of over 7% price increase earlier in the year, prices have seen a slight decrease since the summer. While Cyber Monday discounts may not be prevalent, prices have edged lower by a few percentage points. Moreover, with economists predicting a modest decline in mortgage rates in 2024, market conditions are considered highly favorable for buyers.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,185,100, reflecting a 4.9% increase over November 2022. However, there is a 1% decrease compared to October 2023.

Breaking down property types, detached home sales in November 2023 increased by 7%, reaching 523 sales. The benchmark price for a detached home is $1,982,600, representing a 6.8% increase from November 2022 but a 0.9% decrease compared to October 2023.

Apartment home sales reached 850 in November 2023, showing a marginal 0.4% increase from November 2022. The benchmark price for an apartment home is $762,700, indicating a 6.2% increase from November 2022 but a 1% decrease compared to October 2023.

Sales of attached homes totaled 316 in November 2023, marking a substantial 12.5% increase compared to November 2022. The benchmark price for a townhouse is $1,092,600, showing a 6.9% increase from November 2022 but a 0.7% decrease compared to October 2023.

In summary, Metro Vancouver’s housing market is currently characterized by increased inventory, balanced conditions, and a slight decline in prices since the summer. With favorable market conditions for buyers and anticipated declines in mortgage rates, the real estate landscape in the region appears to be offering a unique opportunity for those in the market for a new home.

Everything You NEED To KNOW! Metro Vancouver Real Estate Update November 2023

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

The Metro Vancouver housing market remained steady in October 2023, as indicated by an increase in newly listed properties providing more options for homebuyers. However, despite this rise in listings, sales figures continued to lag behind long-term averages, reflecting a somewhat subdued demand. The Real Estate Board of Greater Vancouver (REBGV) reported 1,996 residential sales for the month, marking a 3.7 percent increase from October 2022, yet still 29.5 percent below the 10-year seasonal average.

The surge in newly listed properties, which was about 15.4 percent higher compared to the previous year, contributed to a total of 11,599 properties currently listed for sale on the Multiple Listing Service® (MLS®) system, representing a 12.6 percent increase from October 2022. Despite this rise, the sales-to-active listings ratio stood at 17.9 percent across all property types. By property type, the ratio was 12.9 percent for detached homes, 20.9 percent for attached homes, and 21.5 percent for apartments.

Market analysis indicated that the overall shift towards more balanced conditions was particularly noticeable in the multifamily segment, which remained more active than the detached segment. The real estate market experienced a relative balance between supply and demand, which restrained significant price fluctuations. While borrowing costs remained high, housing affordability was somewhat alleviated by the stabilization of prices, thus maintaining the purchasing power of buyers in the market.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver was $1,196,500, marking a 4.4 percent increase from October 2022. However, there was a slight 0.6 percent decrease compared to September 2023. Detached homes recorded 577 sales in October 2023, with a benchmark price of $2,001,400, representing a 5.8 percent increase from the previous year but a 0.8 percent decrease compared to the previous month.

Apartment home sales saw a rise of 4.9 percent, reaching 1,044 in October 2023, with the benchmark price for an apartment home at $770,200, reflecting a 6.4 percent increase from the previous year and a 0.2 percent increase from the previous month. Attached home sales totaled 356, showing a 6.6 percent increase from October 2022, with the benchmark price for a townhouse at $1,100,500, indicating a 6 percent increase from the previous year and a 0.2 percent increase from the previous month.

Overall, the market’s balanced conditions, driven by increased inventory and moderate demand, resulted in a relatively stable housing market in Metro Vancouver. Despite persistent challenges related to borrowing costs and affordability, the market remained resilient, offering some relief to prospective buyers with stabilized prices.

Everything you need to know about Vancouver real estate market in August 2023

Oleg Articles, For Buyers, For Sellers, Market update, News, Statistics

 

In the dynamic real estate landscape of Metro Vancouver, the month of July 2023 witnessed yet another upswing in home prices across all types of properties, fuelled by a robust sales surge. This ongoing trend of price escalation is being driven by a formidable combination of vigorous sales figures and a persistently low housing inventory within the region.

According to the latest data from the Real Estate Board of Greater Vancouver (REBGV), the total number of residential home sales in the area reached an impressive 2,455 in July 2023. This marked a substantial increase of 28.9 percent compared to the 1,904 sales recorded during the same period in 2022. It’s noteworthy that these figures remained about 15.6 percent below the ten-year seasonal average of 2,909 sales.

Andrew Lis, the director of economics and data analytics at REBGV, emphasized the significance of the year-over-year sales increase, even if it still lags behind the ten-year average. He explained that this substantial improvement is partly attributed to the market’s response to the previous year’s scenario when the Bank of Canada took many by surprise with a sizeable one percent increase in the policy rate. This move had momentarily chilled the market activity by catching both buyers and sellers off guard.

The supply side of the equation also saw notable developments. In July 2023, there were 4,649 detached, attached, and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver. This figure marked a significant 17 percent increase compared to the 3,975 homes listed in July 2022, although it still remained 5.2 percent below the 10-year seasonal average of 4,902 listings.

Presently, the total number of homes listed for sale on the MLS® system in Metro Vancouver stands at 10,301, reflecting a four percent decrease when contrasted with the figures from July 2022 (10,734). Moreover, this number was about 14.4 percent lower than the ten-year seasonal average of 12,039 listings.

An insightful metric for evaluating the balance between supply and demand is the sales-to-active listings ratio. For July 2023, this ratio stood at 24.9 percent when considering all property types combined. However, when analyzed by property type, the ratios were 16.5 percent for detached homes, 32 percent for townhomes, and 30.6 percent for apartments. Historical analysis suggests that home prices typically experience downward pressure when the ratio remains below 12 percent consistently. Conversely, when the ratio surpasses 20 percent over several months, it tends to exert upward pressure on home prices.

One intriguing aspect of the current market environment is the contrast between the Bank of Canada’s modest rate hike of a quarter of a percent in July and the highest mortgage rates witnessed in Canada in over a decade. Despite this, sales activity managed to outpace last year’s levels, indicating not only the robust demand in the market but also buyers’ ability to adapt and qualify for higher borrowing costs.

In terms of specific property types, the MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver reached $1,210,700. This signifies a marginal 0.5 percent increase over July 2022 and a similarly modest 0.6 percent increase when compared to June 2023.

Delving deeper, the sales of detached homes in July 2023 numbered 681, an impressive 28.7 percent upswing from the 529 detached sales recorded in July 2022. The benchmark price for a detached home reached $2,012,900, reflecting a 0.6 percent increase from the previous year and a 1.1 percent rise compared to June 2023.

Similarly, apartment home sales witnessed a significant surge, totaling 1,281 in July 2023. This marked a substantial 20.7 percent increase when compared to the 1,061 sales of July 2022. The benchmark price for an apartment home climbed to $771,600, demonstrating a noteworthy 2.6 percent increase from the previous year and a 0.6 percent uptick from June 2023.

Attached homes, too, experienced a notable upswing in sales, with July 2023 witnessing 466 sales compared to 304 in July 2022. This surge of 53.3 percent is substantial and contributed to the benchmark price for an attached home reaching $1,104,600. This marks a 1.2 percent increase from July 2022 and a 0.5 percent rise compared to June 2023.

All in all, the real estate landscape in Metro Vancouver continues to be shaped by a dynamic interplay of strong sales activity, constrained inventory levels, and the ability of buyers to adapt to changing market conditions, including higher borrowing costs. While the ten-year average remains a reference point, the current market’s resilience underscores the enduring demand for housing in the region, driving incremental increases in property prices across various segments.

July 2023 real estate market update for Greater Vancouver

Oleg For Buyers, For Sellers, Market update, Statistics

 

Metro Vancouver’s housing market is witnessing a continued surge in home prices as the summer season commences. The limited availability of homes for sale in the region is causing a clash with the high demand from prospective buyers, leading to further price hikes.

According to the Real Estate Board of Greater Vancouver (REBGV), residential home sales in June 2023 reached 2,988, indicating a significant 21.1 percent increase compared to June 2022’s 2,467 sales. However, despite this growth, the figure fell short by 8.6 percent of the ten-year seasonal average of 3,269.

Andrew Lis, the director of economics and data analytics at REBGV, noted that the market has exceeded expectations in all segments, with apartments exhibiting the strongest performance in June. Lis stated that the benchmark price of apartment homes is nearly reaching the peak recorded in 2022, and apartment sales have surpassed the region’s ten-year seasonal average. In contrast, sales of attached and detached homes remained below the seasonal averages.

In June 2023, there were 5,348 newly listed detached, attached, and apartment properties for sale in Metro Vancouver, reflecting a slight 1.3 percent increase compared to June 2022’s 5,278 listings. However, this number fell 3.1 percent short of the ten-year seasonal average of 5,518.

Currently, there are 9,990 homes listed for sale on the Multiple Listing Service® (MLS®) system in Metro Vancouver, indicating a 7.9 percent decrease compared to June 2022’s 10,842 listings. This figure is 17.4 percent lower than the ten-year seasonal average of 12,091.

The sales-to-active listings ratio for June 2023 stands at 31.4 percent for all property types, while the ratio is 20.9 percent for detached homes, 38.5 percent for townhomes, and 39.4 percent for apartments. Historical data suggests that when the ratio remains below 12 percent for a sustained period, home prices tend to experience downward pressure, while a ratio surpassing 20 percent for several months often leads to upward pressure on prices.

Andrew Lis highlighted that despite higher borrowing costs, the lack of resale inventory relative to the pool of buyers in Metro Vancouver continues to drive prices up across all segments. Lis called upon the provincial government to adjust the Property Transfer Tax’s threshold, which exempts first-time home buyers, to better align with the price of entry-level homes in the region. Such a policy adjustment could enable more first-time buyers to afford a home.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver currently stands at $1,203,000. This represents a 2.4 percent decrease from June 2022 but a 1.3 percent increase compared to May 2023.

Sales of detached homes in June 2023 amounted to 848, reflecting a substantial 28.3 percent increase compared to the 661 sales recorded in June 2022. The benchmark price for a detached home is $1,991,300, representing a 3.2 percent decrease from June 2022 but a 1.9 percent increase compared to May 2023.

Apartment home sales reached 1,573 in June 2023, marking an 18.6 percent increase compared to the 1,326 sales in June 2022. The benchmark price for an apartment home is $767,000, indicating a 0.5 percent increase from June 2022 and a 0.8 percent increase compared to May 2023.

Sales of attached homes in June 2023 totaled 547, signifying a 17.6 percent increase compared to the 465 sales in June 2022. The benchmark price of an attached home is $1,098,900, representing a one percent decrease from June 2022 but a 1.5 percent increase compared to May 2023.

3 strategies smart investors use to win in a slower real estate market in Vancouver

Oleg Articles, For Buyers, For Sellers, Opinion, Tips


The Greater Vancouver real estate market has been experiencing a slowdown in recent times. However, experienced investors understand that a slower market presents unique opportunities that can be harnessed for greater returns. Here are three ways smart real estate investors take advantage of a slower real estate market in Greater Vancouver:

  1. Upsizing:

One way smart real estate investors take advantage of a slower market is by upsizing their real estate portfolio. In a slow market, the more expensive properties tend to drop in price more, which presents a perfect opportunity for investors to acquire larger and more valuable properties. For instance, an investor who wants to move from a condo to a single-family home can leverage the slowdown to acquire a bigger and more luxurious property at a lower price than would be possible in a hot market.

The key is to identify properties that are likely to retain their value in the long term. This means focusing on properties with excellent location, good amenities, and good resale potential. An experienced real estate agent can help investors identify such properties and guide them through the upsizing process.

  1. Buying pre-sale properties from developers:

Another way smart real estate investors take advantage of a slower market is by buying pre-sale properties from developers. During a slow market, developers are often eager to move their inventory and may offer attractive incentives to buyers. In addition, interest rates are expected to go down in the future, which makes buying pre-sale properties an even more attractive option.

Investors can leverage this opportunity by identifying pre-sale properties with excellent potential for capital appreciation. This means focusing on properties in areas with good growth potential, excellent amenities, and strong demand. Additionally, investors should work with reputable developers with a track record of delivering quality properties on time.

  1. Buying long-term investment properties:

A slower real estate market presents a perfect opportunity for investors to acquire long-term investment properties. The rental market in Greater Vancouver is still very strong, which means that investors can acquire properties and generate steady rental income over the long term.

Smart investors focus on properties that have good rental potential, such as those in areas with high demand, excellent amenities, and good transportation links. Additionally, investors should focus on properties with good long-term growth potential, such as those in areas with strong job growth and population growth.

Investors should also consider the potential for future development, such as adding additional rental units to the property or converting the property to other uses. This can help to increase the property’s value over time and generate even greater returns.

In conclusion, a slower real estate market in Greater Vancouver presents unique opportunities for smart real estate investors. By upsizing their portfolio, buying pre-sale properties from developers, and acquiring long-term investment properties, investors can take advantage of the slowdown to generate greater returns over the long term. However, it’s important to work with experienced real estate professionals who can help identify the best opportunities and guide investors through the process of acquiring and managing real estate assets.

Top 5 things you need to know about Greater Vancouver real estate market in May 2023

Oleg First time buyers, For Sellers, Market update, News, Videos

 

A link to real estate statistics: https://members.rebgv.org/news/REBGV-Stats-Pkg-Apr-2023.pdf

Hello and welcome back to our channel! In today’s video, we will be discussing the latest real estate trends in Metro Vancouver. According to a report by the Real Estate Board of Greater Vancouver, home buyer confidence has returned, resulting in rising home prices despite a decrease in listings. Here are the five most important things you need to know from the report.

  1. Sales are rebounding: Despite the pandemic’s effects on the economy and the previous interest rate hikes, home sales in Metro Vancouver have rebounded, increasing near levels seen last spring. In April 2023, residential home sales in the region totalled 2,741, representing a 16.5% decrease from the same period in 2022, and 15.6% below the 10-year seasonal average.
  2. Low inventory levels are creating competitive conditions: There is a shortage of resale supply available relative to the pool of active buyers in the market, which is creating competitive conditions where almost any resurgence in demand would lead to price escalation, despite the elevated borrowing cost environment.
  3. Prices are increasing: The MLS HPI data shows that home prices have already increased about 5% year-to-date, outpacing the forecasted 1-2% increase by year-end. The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,170,700, representing a 2.4% increase compared to March 2023 and a 7.4% decrease from April 2022.
  4. Decrease in listings: The report shows a 29.7% decrease in the number of detached, attached, and apartment properties newly listed for sale on the Multiple Listing Service (MLS) in April 2023 compared to April 2022. The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 8,790, representing a 4.2% decrease compared to April 2022.
  5. Sales-to-active listings ratio: The sales-to-active listings ratio for April 2023 across all detached, attached, and apartment property types is 32.7%. The ratio is 24.4% for detached homes, 40.1% for townhomes, and 37.4% for apartments. When the ratio dips below 12% for a sustained period, it suggests downward pressure on home prices, while a ratio surpassing 20% over several months often leads to upward pressure on prices.

Conclusion: In summary, the Vancouver real estate market has experienced a surprising rebound in home sales, but the low inventory levels have created competitive conditions resulting in increasing home prices. The decrease in listings has contributed to a shortage of resale supply available relative to the pool of active buyers in the market. We will have to wait and see whether these price increases will be sustained into 2024. That’s all for today’s video, make sure to like and subscribe to stay up-to-date with the latest real estate news.

Bank of Canada decided NOT to raise the interest rates in April 2023

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On April 12, the Bank of Canada (BoC) made an announcement that it would maintain the interest rates at 4.5%. This rate has been unchanged since January 2023, following several increases in the latter half of 2022. The stability of interest rates and the decreasing rate of inflation suggest that the Canadian economy may be beginning to stabilize. This stability allows newcomers to Canada to plan their budgets for large purchases and get a consistent rate of return on any guaranteed investment certificates (GICs).

However, Bank of Canada Governor Tiff Macklem says that the current monetary policy needs to remain restrictive to lower the inflation rate, and it is still possible that interest rates could rise higher. It is still too early to tell. Macklem pointed out in a news conference that the benefits of the higher interest rate will not be immediately apparent, as they usually come with a delay of between 18 and 24 months after measures are implemented. This is a factor in why prices are still so high for Canadians.

The interest rate has a significant impact on the average Canadian’s ability to make substantial purchases, such as a home or a car. Although the Canadian government recently amended an act that prevented non-Canadians and permanent residents from purchasing a home in Canada, the high interest rate means that mortgage rates will remain elevated for some time. This may be a cause for concern even for those with a locked-in mortgage rate that is up for renegotiation. However, a stable interest rate means that monthly mortgage payments will remain constant and enable newcomers and Canadians to budget and plan for the future.

Macklem told reporters that the labour market has remained tight, with unemployment at 5%, but businesses are starting to find it easier to find labour due to strong population growth. Macklem credits much of the growth to employers who use the Temporary Foreign Worker Program, which helps bring in additional skilled workers and reduces the number of job vacancies. Canada’s population is aging, and the economy relies on immigration to fill gaps in the labour force, keep essential services running, and benefit from their income tax contributions.

Last November, Canada released the Immigration Levels Plan 2023-2025, which contains the highest-ever targets for new permanent resident admissions at 500,000 per year by 2025. This will help ease the pressure to find skilled employees in high-demand sectors such as healthcare, construction, and professional and scientific services. Speaking about the benefits of immigration for reducing inflation, Macklem stated that increased immigration would rebalance supply and demand. Bank of Canada predicts that inflation will fall to around 3% in the middle of this year and decrease more gradually to the 2% target by the end of 2024.

The current high interest rates can be traced back to measures taken during the COVID-19 pandemic. At the time, the BoC slashed interest rates to reduce the financial burden on Canadians facing hardships while many workplaces were closed. As the economy rebounded and spending increased, more demand for products and services led businesses to raise prices, contributing to the high rate of inflation. Raising interest rates curbs spending and eases demand, allowing businesses to lower their prices, and the cost of living should come down. Inflation peaked in June 2022 at 8.1% and has since lowered to 5.2% as of February.

Greater Vancouver real estate market update for April 2023

Oleg First time buyers, For Buyers, For Sellers, Market update, Statistics

 

The real estate market is currently experiencing a shortage of available inventory, which is causing a decline in seller interest in listing their properties. This is primarily due to the increase in borrowing costs, which has made it difficult for sellers to qualify for the same mortgage amount as in the past. Additionally, the stress test, which determines whether borrowers can afford mortgage payments at higher interest rates, has contributed to the decrease in inventory.

As a result of the lack of available inventory, there has been a slight increase in prices, and multiple offers are becoming more common. Many buyers who have been waiting on the sidelines are now ready to enter the market, but there are not enough properties to meet the demand. While statistics may not paint the full picture, current indicators suggest that prices are unlikely to decrease and may even continue to rise slightly, which is worth noting for potential buyers.

In addition to the limited inventory in the real estate market, the rental market is also strong, particularly in Vancouver, which remains the most expensive city in Canada to rent. The average cost of a one-bedroom unit in Vancouver is $2640, while a two-bedroom unit costs $3632. Burnaby also ranks as the third most expensive city in Canada for rent, with one-bedroom units costing $2282 and two-bedroom units costing $3175.

This strong rental market can be attributed to the shortage of available properties for rent, causing demand to exceed supply, resulting in a competitive rental market. Landlords have the upper hand, and tenants often must pay a higher price for a desirable rental property. While this may not be ideal for renters, it does present opportunities for investors looking to purchase and rent out properties in these cities.

Overall, the current state of the real estate market is due to a combination of factors, including the rise in borrowing costs, the stress test, and the lack of available properties for rent. While this has led to a slight increase in prices, it is unlikely to be a dramatic change. However, those looking to buy or rent in Vancouver or Burnaby should be aware of the current state of the market and the high associated costs.

Are multiple offers back? – Greater Vancouver Real Estate Market Update March 2023

Oleg First time buyers, For Buyers, For Sellers, Market update, Videos

The Vancouver real estate market is experiencing a surge in multiple offer situations due to a low inventory of available properties. This trend is especially clear in a condo and the townhouse markets in Greater Vancouver. However, the current trend is different from the past as these multiple offers are much closer to the listing price. In the past, during multiple offer situations, properties would sell for 10 or even 20 percent over the listing price.

The Vancouver real estate market has been one of the hottest and most competitive markets in North America for the past several years. The city’s picturesque location and robust economy have attracted many buyers, making it difficult for many first-time homebuyers to enter the market. This situation has been exacerbated by a low inventory of available properties.

The low inventory of available properties has created a competitive environment for buyers, and as a result, multiple offer situations have become more common. In a multiple offer situation, several buyers make an offer on the same property, which can drive up the price. However, in the past, during these multiple offer situations, the price would often exceed the listing price by a significant margin.

Today, the situation is different. Buyers are still making offers on the same properties, but the offers are much closer to the listing price. This trend is likely due to several factors. Firstly, buyers are becoming more educated and savvy about the market. They are aware of the risks of overbidding and are therefore more cautious. Secondly, historically high interest rates makes it much harder to qualify for mortgages.

The shift towards more reasonable offers is a positive development for both buyers and sellers. Buyers are more likely to get the property at a fair price, while sellers can sell their property without worrying about overpricing or underpricing.

However, the competitive environment created by the low inventory of condos and townhouses is still present, and multiple offer situations are still happening. Buyers need to be prepared and do their due diligence before making an offer. They should have a good understanding of the market and the value of the property. It’s also important to work with a reputable real estate agent who can guide them through the process.

In conclusion, the Vancouver real estate market is experiencing a surge in multiple offer situations due to a low inventory of available properties. However, the current trend is different from the past as these multiple offers are much closer to the listing price. This is a positive development for both buyers and sellers and is likely due to increased education and transparency in the market. Buyers should still be prepared for a competitive environment and do their due diligence before making an offer.

 

3 ways to make money in the current slow real estate market in Vancouver.

Oleg Articles, For Buyers, For Sellers, Tips

The Vancouver real estate market has been experiencing a slowdown in recent years due to high interest rates. However, smart investors are taking advantage of these conditions to make strategic investments and maximize their returns. In this article, we’ll explore three ways that smart investors are taking advantage of the slow Vancouver real estate market conditions due to high interest rates.

  1. Buying pre-sale properties

One way smart investors can take advantage of the slow Vancouver real estate market conditions due to high interest rates is by purchasing pre-sale properties. Developers are often willing to offer pre-sale properties at a discounted rate during slow market conditions, which can provide an opportunity for investors to secure a property at a lower price.

By purchasing a pre-sale property, investors are also hopping for a lower interest rate in future. This can be particularly advantageous during a slow market when interest rates are high, making it difficult to qualify for a mortgage or afford a mortgage payment.

Investors should be aware of the risks associated with pre-sale properties, including potential delays in construction or changes in the real estate market. Thorough research and due diligence are essential before making a pre-sale property investment.

  1. Upsizing

Another strategy smart investors are using in the slow Vancouver real estate market conditions. By purchasing a larger property and selling their smaller one, investors can take advantage of the equity built in the current property as well as lower prices on the bigger property.

For example, you own a townhouse and would like to upgrade to a house. On average detached properties in Vancouver have seen a bigger depreciation as opposed to townhomes. If you were thinking of upsizing already then upsizing in the slow market can be a great opportunity to do so.

Investors should carefully consider the costs associated with upsizing, such as higher property taxes, property transfer taxes, maintenance costs, and potential renovation expenses. Thorough research and due diligence are essential before making an upsizing investment.

  1. Rental properties for long-term investment

Finally, smart investors are taking advantage of the slow Vancouver real estate market conditions due to high interest rates by investing in rental properties for long-term investment. High interest rates can make it difficult for some people to qualify for a mortgage, leading to increased demand for rental properties.

By purchasing a rental property in a slow market, investors can take advantage of lower property prices and potentially higher rental income. Over time, as interest rates decrease and property values increase, investors can realize significant profits from their rental property investment.

Investors should be aware of the risks associated with rental properties, including maintenance costs, tenant turnover, and potential vacancies. Hiring a property manager to handle day-to-day management tasks can help to mitigate some of these risks.

In conclusion, the slow Vancouver real estate market conditions due to high interest rates are providing opportunities for smart investors to make strategic investments and maximize their returns. By purchasing pre-sale properties, upsizing their properties, or investing in rental properties for long-term investment, investors can build long-term wealth. However, as with any investment, thorough research and due diligence are essential to avoid potential pitfalls. Working with a knowledgeable investment advisor can help to ensure that investors make informed decisions and maximize their returns in the slow Vancouver real estate market conditions.