October 2022 Greater Vancouver Real Estate Market Update

The October 2022 real estate market in Metro Vancouver painted a picture of caution as inflation and rising interest rates continued to dominate headlines. While the month experienced a slight uptick in sales compared to September, the overall activity remained significantly below the historical norms.

The Real Estate Board of Greater Vancouver (REBGV) reported 1,903 home sales in October, marking a 45.5% decrease from October 2021 but a 12.8% increase from the previous month. However, this figure sits 33.3% below the 10-year October sales average, underscoring a slower market pace influenced by macroeconomic factors.

A Market Adjusting to Economic Pressures

Inflationary concerns and the Bank of Canada's rising interest rates prompted both buyers and sellers to carefully reassess their options. The increase in active listings—now at 9,852 properties, up 22.6% from October 2021—has shifted the dynamic, providing more selection for buyers while applying downward pressure on prices.

• The MLS® Home Price Index composite benchmark for all residential properties sat at $1,148,900, reflecting a 2.1% year-over-year increase but a 9.2% decline over the past six months.

Sales-to-Active Listings Ratios

For October 2022, the sales-to-active listings ratio hovered at 19.3% across all property types, close to the balanced market threshold. However, performance varied by property type:

• Detached homes: 14.3%

• Townhomes: 21.6%

• Apartments: 23.2%

This data suggests that while prices have softened from their peak earlier in the year, townhomes and apartments have maintained relatively stronger demand.

Spotlight on Key Areas

Focusing on our core service areas, the October market provided some nuanced trends:

• Burnaby North: The benchmark price for all residential properties was $994,400, with a modest 4.8% year-over-year price growth despite a slower pace of sales.

• Vancouver East: A benchmark price of $1,127,300, representing a small 0.4% year-over-year increase but a notable 10% decline over the past six months.

• New Westminster: Resilient with a 7.4% year-over-year price increase, benchmark prices reached $809,800.

• Coquitlam, Port Moody, and Port Coquitlam (Tri-Cities): The area saw mixed results, with Port Moody showing a strong 7.6% annual increase to $1,117,500, though sales volumes have eased across the region.

What This Means for Buyers and Sellers

The market’s shift provides opportunities and challenges:

• Buyers: With increased inventory and more time for due diligence, buyers are in a stronger position to negotiate favorable terms. Securing financing early remains critical as further rate hikes loom.

• Sellers: Pricing remains pivotal. While the market is no longer at the frenzied highs of spring 2022, accurate pricing based on current market conditions can still generate interest and achieve favorable results.

A Changing Landscape

October 2022 marked a transitional phase in the Metro Vancouver market. The balance of power between buyers and sellers is shifting, creating a more measured environment. As we head into the final months of the year, staying informed and proactive will be key to navigating the evolving real estate market.

For tailored advice or to discuss how these trends impact your buying or selling journey, feel free to contact me directly. I’m here to help you make informed decisions in every market condition.