The Fall market has played out much as (I) expected so far. Listing inventory increased in the first few weeks post Labour Day as typically happens, but not significantly enough to move us into a buyer’s market across the board. Despite the current cost of borrowing, demand in the City of Vancouver remains strong in key sectors. Approximately 25% of all sales at the entry level of both the condominium and single family house markets were above the list price in competing offer scenarios. Values as a result are remaining pretty stable.
The above is in direct contrast with the luxury market, where there is still a major correction happening and I believe there is more to come. Detached homes over $5,000,000 and condominiums over $2,500,000 are massively over supplied in the market and there are very few buyers willing and able to jump in at this level. To pull this product back into the fold of local affordability will require a major correction in pricing. This would also bring some welcome inventory back into that market. This may happen, or international buyers may return at some point to prop it up at closer to current levels. Possibly not a popular opinion in my industry, but I favour the former. Reality will probably fall somewhere in between.
All the best,