Vancouver Real Estate Market Outlook for 2022

Vancouver Real Estate Outlook for 2022

The year of 2021 was a Sellers market with record activity and rising house prices. The year 2022 will remain a Sellers market but we expect the activity to slow as we approach the September through to December calendar months.

The driving factors for a continuing Sellers market are:

  • Low interest rates with the potential to increase through 2022.
  • A continuing lack of listings offered for sale.
  • Gifting.

 

Interest Rates

Housing sales in Canada usually average 40,000 per month. This average increased to 70,000 per month during COVID. We are expecting the average to decrease and stabilize to 50,000 per month in 2022 but likely to increase to 60,000 per month as interest rates rise. The increase is because buyers will rush into the market to take advantage and lock into a low interest rate. Yet, as rates rise this will slow the Canadian real estate market.

 

Lack of Listings Offered for Sale

The lack of supply of listings is putting pressure on housing prices and driving prices upwards. Multiple offers are the norm in the $500,000 to $2.5 million price range. This will not change until we see a lot more supply enter the local real estate market. Unfortunately, at this time there is no indication that the supply of listings will increase. This is a major factor for the continuation of a Sellers market.

 

Gifting

Gifting is a big positive driving factor in the Canadian real estate market. Thirty three percent of new home buyers are gifted the down payment at an average of $80,000. Ten percent of home buyers that already own a primary residence and want to move up to a bigger home are gifted an average of $100,000. In Vancouver and Toronto, the average gift is much higher. We are currently witnessing the largest transfer of wealth in Canadian history.

The Crystalis

1020 Harwood Street Vancouver BC

Summary

In summary, it looks like another busy year in the Vancouver real estate market with the advantage siding with the Sellers. This is my 35th year as a real estate agent and I still love my job because I know I bring a positive advantage to those who hire me. Knowing the market inside and out gives my clients a huge advantage when navigating challenging conditions and hundreds of thousands and millions of dollars in investment. I look forward to speaking with you and thank you for your continuing support and referrals. I really appreciate it and feel fortunate to continue to work for amazing people.

Don Urquhart
Vancouver Realtor for over 25 years
Macdonald Realty
604 787 1210
email: [email protected]