Inventory levels are still very low in most areas, while interest rates are still on the higher end. If you’ve been following the news media for the past six months, you’re likely more confused than ever. I’m here to help!
The market and the ebbs and flows in pricing and sales cannot be defined in one blanket news article that generally addresses the market activity across Canada.
Buyers are now out for the spring market, and we are seeing a good mix of investors and first-time homebuyers at lower price points. Families and up-sizers are feeling more comfortable shopping within their budgets. Down-sizers have been seeing more potential products in the market to move into, allowing there to be more inventory coming to detached markets across the Lower Mainland.
What we’ve experienced this past month: open houses have become very busy, more multiple offer situations, an increase in buyer activity, and an overall increase in movement in most markets.
The market across the Lower Mainland is still extremely low on inventory. This has been some of the lowest inventory in BC over the past 25 years. Good listings that are priced sharply are seeing multiple offers. Buyers are being particular right now and waiting for the right product to pop up. There are a lot of buyers starting to search again after the craziness of 2021-2022. The buyers are seeing they have leverage in some cases, such as listings that have been sitting just above their price range, and are able to negotiate down, especially if they are willing to put in some work.
The condo market in Maple Ridge saw an increase in the number of listings added to the market, as well as the number of sales compared to the previous month. The average sale price also increased from $640,000 to $690,000. It is still a seller’s market with an average sales ratio of 39%. The best opportunities for buyers are 2-bedroom condos or listings priced between $400,000-$500,000. The best opportunity for sellers is 3-4 bedroom townhouses in Cottonwood.
Detached homes in Maple Ridge saw an interesting March. More inventory was added, which is great, but the number of sales and the average sale price were both down. It’s still a seller’s market with a 28% average sales ratio across Maple Ridge. The buying opportunity is mainly homes priced between $1,500,000-$1,750,000 in areas like Silver Valley. The best selling opportunity is 3-4 bedroom homes in Northwest Maple Ridge.
In terms of presales, there has been an influx of assignments of contract coming onto the market. Some assignments are becoming profitable in certain markets, while in others, there are opportunities for buyers to get a discount on newer products from reputable developers. This may be due to sellers who purchased a pre-sale expecting the value to drastically increase but now having issues getting financing as the development has plans to complete within the next year.
Regarding interest rates, the Bank of Canada did not increase rates in their March meeting, but they have another meeting coming up in April. The Canadian banks set their target based on this rate but also take into consideration competing bank rates, the level of risk in offering a lower rate, in addition to inflation, GDP, and unemployment.
These next few months will be busy. It’s a great time to consider listing or purchasing depending on your real estate goals. If you want a more detailed analysis of your property or to chat about your real estate goals, please never hesitate to reach out. I’m always more than happy to answer any questions.