July 2023 Market Update
This past July has shown benchmark sale prices increase +0.6% over June 2023 despite mortgage rates now being the highest Canada has had in over 10 years.
Interestingly, benchmark sale prices this July were also +0.5% over July 2022. Despite two further interest rate increases of 0.25% in both June and July 2023, sale prices have now surpassed where they had been one year ago. This is particularly significant due to July 2022 being a considerably lower interest rate market than present.
A main contributor to this continued price growth are the low inventory levels experienced so far this year (14.4% below 10 year average). While many new buildings are underway, buyer demand still far outweighs the rate at which new homes are being built.
July is historically the beginning of a slightly quieter time of year for real estate prior to the busy fall market starting in September. However, the data would suggest this is slightly less true this year so far as buyers and sellers have remained quite active. While July remained busy, August may bring a slight slowdown as buyers and sellers focus more on summer plans and plan to refocus in the early fall.
This July at Ballard360 we have been working with clients on the North Shore, Vancouver, and Nanaimo!
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Source: The Real Estate Board of Greater Vancouver