Overpriced Markets are Now Feeling the Pinch

Market is Settling

• 
• By Nancy Smith
• Qualicum Beach REALTOR®
• Published: Dec 2nd, 2022 at 11:50 am

Sales volume is down, but pricing has barely changed. This is a current snapshot.

02:30 PM EST, 12/02/2022 (MT Newswires) -- Based on November data from the Real Estate Board of Greater Vancouver (REBGV), National Bank of Canada estimates that seasonally adjusted home sales fell 13.5% from October, the ninth deterioration in 10 months and the second fastest among them. As a result, home sales dropped to their lowest level since April 2019 excluding the pandemic slump. On the supply side, National estimates that the number of properties listed for sale swelled 2.9% from October, a second consecutive monthly rise.

According to National, the increase in inventory, combined to the drop of sales, tipped the market in favor of buyers in November. "With this month's performance," the bank said, "it is very clear that the increase in mortgage rates is putting pressure on the real estate market. In the third quarter, Vancouver underwent the largest deterioration in affordability of Canada's urban centers, causing several home buyers to be priced out. With the Bank of Canada expected to raise its policy rate again in December, housing sales should remain weak in the months ahead."

On a year over basis, National noted home sales were down 52.9% and stood 36.9% below the 10-year average number of sales for a month of November, With only a month left in the year, home sales in 2022 are standing 33.2% below their 2021 level, the bank said. On a 12-month basis, sales in the detached, attached and apartment segments plunged by 50.8%, 54.2% and 53.7% respectively, it added.