January Founder’s Message
Market analysts are predicting steady price growth across the Metro Vancouver real estate market in the coming months ahead. With housing prices expected to rise 12% across Greater Vancouver this year, the Canadian Real Estate Association (CREA) says 2022 could be the second-best year on record.
Metro Vancouver showed how pandemic-proof it was as residential home sales reached an all-time high in 2021. The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totaled 43,999 in 2021, up 42.2% from 2020 and 73.6% higher than 2019. REBGV economist Keith Stewart explains that demand for housing is more than we’ve seen in over 30 years and predicts home prices will keep increasing this year.
Historically low interest rates, additional household savings and homeowners requiring more flexible living space during the pandemic has fueled Vancouver’s record-shattering real estate market in the past two years.
And it looks like there is no end in sight. The CREA expects 2022 home sales across Canada to increase 8.6% compared to last year and prices to go up 7.6%. Similarly, most of Canada’s largest mortgage lenders are also forecasting a strong housing market this year, with some areas seeing double digit increases.
Despite the Bank of Canada’s rising lending rates on the horizon, it is expected that Metro Vancouver’s real estate market will remain robust. Most analysts expect the Bank of Canada’s overnight lending rate to increase in a series of hikes from its current 0.25% to 1.25% by the end of 2022. Rate increases will make the cost of borrowing more expensive in the new year.
However, these higher rates are not predicted to impact Vancouver’s real estate market as we are one of the best places to live in the world. The Lower Mainland continues to draw interest from Canadian and International buyers, a trend that is likely to grow this year as the federal government expects to welcome more than 400,000 new residents to Canada.
It is currently a strong seller’s market in Metro Vancouver, and this is expected to remain in the months ahead. The ongoing housing shortage supply is likely to continue to put upward pressure on home prices. The CREA predicts British Columbia and Ontario will see the highest home prices in 2022 at $990,038 and $971,080 respectively.
Despite the global pandemic, many Canadians believe real estate will remain one of the best investment options in 2022. As confidence continues in the Metro Vancouver and Canadian real estate markets, now is an excellent time to schedule a complimentary, in-depth comparative market evaluation on your home with one of our highly experienced Virani advisors.
The MLS composite benchmark price for all residential properties in Metro Vancouver ends the year at $1,230,200, up 17.3% from 2021. Mortgage rates are still at record lows, so it is an ideal time to consider your real estate goals. The year ahead looks bright for Vancouver’s real estate market. We invite you to give us a call so we can ring in the new year together.