Market Update Summer 2023

Market Update : Summer 2023

Happy Summer

Can you believe it’s already July? Time sure flies, doesn’t it? Summer is in full swing, and we’re already halfway through 2023! It’s a season of sunshine and good vibes, especially here in Beautiful BC. We hope you’re savouring every moment of this delightful time, whether you’re basking in the sun or embarking on exciting adventures across our picturesque province. So, slap on that sunscreen, grab your inflatable unicorn, and get ready for the most epic newsletter ride of the season.

Now, let’s dive into the exciting world of real estate and uncover where we’ve been and where we might be headed. Buckle up!

After a somewhat tumultuous 2022, marked by an early boom followed by a gradual bust in the composite MLS HPI, 2023 has been a year of recovery. We’ve witnessed a steady 8.1% increase Year-to-Date (YTD), painting a positive picture on the charts. Higher interest rates may have slowed down some buyers, but the demand continues to outpace supply, resulting in price increases across the board.

MLS HPI Price Graph:

REBGV Stats - Summer 2023
However, it’s important to approach the future with a cautious perspective. This week’s rate hike might have significant implications for variable rate mortgage holders and those approaching renewal. For instance, imagine you have a $563,000 mortgage (the city average according to Google) on a 5-year fixed rate about to be renewed. Brace yourself because your monthly payment is set to rise from approximately $2,700 to $3,500 – a substantial 30% increase. Given that most households exceed the recommended 36% Debt-to-Income ratio, many might find themselves in water hotter than Meager Creek Hot Springs (the most visited non-commercial Hot Springs in BC prior to the 2010 landslide).

Now, let’s not get too pessimistic. The market is still performing well, but it’s essential to acknowledge the growing difficulty of mortgage payments for many Canadians. This situation might have implications, particularly for investment properties, as rising mortgage payments outpace rental income. As we dive into summer, it’s worth keeping an eye out for potential opportunities that might arise – particularly in downtown condos.

Speaking of summer, it’s a time when the real estate market tends to slow down as buyers and sellers shift their focus to enjoying the beauty of BC’s mountains and beaches. Open houses and house hunting might take a backseat as everyone indulges in the delights of the season.

However, once supply comes back on track in the fall, we may find ourselves in multiple offer situations once again. After all, who doesn’t want to move here when we have weather like this?

Before we wrap up, we have some exciting news to share with you! We’re thrilled to welcome two new faces to our team: Donita Dyer (left below) and Christa-Lee Ferris (right below).
Their expertise and passion for real estate will undoubtedly enrich our services. Additionally, we’re busy preparing marketing materials for our upcoming projects with the Saint Group of Companies. Keep an eye out for these East Van beauties that will be offered to you, our valued subscribers, for the first look.

As always, we are immensely grateful for your continued support and dedication to Blu. Our mission is to provide you with valuable insights and information to navigate the real estate landscape. Whether you’re enjoying the summer sun by the pool or exploring the breathtaking wonders of BC, rest assured that we are here to support you every step of the way.
Shawn Lee and Jimmy Lee
Wishing you a cool and enjoyable summer!

Warm regards,

The Blu Team

P.S. Most inflatables end up in the landfill (or river bottom), so please be kind to our environment.
Shawn Lee and Pickles