The Surrey/White Rock area has been seeing some changes recently, suggesting that the market is beginning to turn. According to WOWA, August of 2022 saw a decrease in the number of year-over-year transactions of all home types in the Greater Vancouver area. The benchmark price of homes also declined from July to August 2022.
Canada’s housing market, as a whole, has been going through a rapid slowdown as a result of high inflation, increased interest rates, and economic uncertainty. August 2022 saw a 25% decrease in year-over-year transactions and a 4% year-over-year decrease in the average home price in Canada, which are very encouraging trends for homebuyers.
Many potential buyers are choosing to wait to purchase a home during this time of uncertainty. This decrease in buyers is helping to balance the buyer-to-seller ratio for the first time in years and is actually great news for homebuyers.
Buyers are finally getting the leverage to negotiate fair prices. The buyer-to-seller balance ratio is likely to fully balance out in the coming months.
What Does This Mean for Buyers?
A decrease in the number of buyers and the resulting slowdown in the housing market in the South Surrey/White Rock area is a very positive signal for homebuyers. Prices are likely to continue coming down as buyers have more leverage and inventory increases throughout the Fall season. The advantage is beginning to tip away from sellers and toward buyers.
As the market stabilizes, buyers will have less competition for homes. As sellers receive fewer offers, buyers gain more control. Lower offers are likely to be accepted, and buyers will have more leverage to have contingencies such as appraisals and home inspections included in their offers. Homeowners will drop prices as homes sit on the market for longer periods.
The most expensive markets in Greater Vancouver are already buyers’ markets. Other Metropolitan areas are likely not far behind. As this shift continues, buyers will continue to have more power to offer lower prices, and still get the property.
Increased inventory also gives buyers more options when selecting their future homes. This is another great advantage buyers are likely to see continue throughout this Fall season.
It’s been a sellers’ market for years now, but the Metropolitan Vancouver area has seen some recent trends to suggest that the market is changing. Fall 2022 is likely to see this trend continue.
Buyers—and even first-time homebuyers—are gaining the advantage for the first time in years. So, if you have been hesitant about buying in the housing market climate of the past few years, now could be the time.
I am proud to be a Realtor with Sutton Westcoast and I'm here to answer your questions. Call me any time Al Dyck, PREC 604-970-7083