Cowichan Valley Market stats for September are in and we continue to see all the signs of a softening market. September saw a 21.11% increase in the number of Single Family homes listed, a marginal 1.89% drop in the average sale price and almost double the number of days on market to sell as we saw in the same time period in 2021. We continue to see listing prices reduced and a drop in units reported sold for all types of real estate offerings over the same period last year. Global News recently reported on a RE/MAX Canada poll suggesting up to 44% of Canadians have put their move on hold, citing inflation, rising interest rates & fears of a looming recession as cause to pause. In general, our market area is not as deeply impacted by these influences as larger centres like Toronto or Vancouver but we will still see the effects. Economists and pundits predict a continued slowing market through the end of 2022 (which is typical for fall/winter in any market) and expect things to pick up again mid 2023 as economic conditions & consumer confidence improve.
What does this mean for Buyers & Sellers?
In the meantime & moving forward, Buyers have a little more breathing room but with anticipated interest rate hikes, it’s important to consider your buying power and leverage now. See your lender and get that pre-approval to lock in current rates as soon as possible. For Sellers, while prices continue to drop and it’s unlikely you will see the same “over the top” returns as we saw in the previous 2 years, there is still time to maximize and we are still well above pre-pandemic pricing.
New Legislation Coming Jan 2023 may also affect Market Conditions
Outside of economic conditions other factors will also come into play in 2023 that will further effect Real Estate markets across Canada. The introduction of the Home Buyer Rescission Period & a 2 year Foreign Buyer Ban coming into effect in January are further measures the Canadian Government is implementing to protect consumers, cool the housing market and make homeownership more affordable for Canadians. While it remains to be seen if these measures will have the intended effect, one thing is for certain: Real Estate markets are cyclical. There are ups and downs. There are always buyers wanting to buy and sellers wanting to sell, and in every market, timing is everything. It’s important to have a Real Estate Professional at your side to guide you.
What should you do?
Looking to make a move? Give us a call today to learn more & let us help you achieve your Real Estate goals!