Stress Test and Inventory Weigh on Vancouver Housing Market

Amid a fluctuating economic environment, Canadian homebuyers and sellers are optimistic that 2023 could yield a more-balanced market, according to RE/MAX Canada’s 2023 Industry Trends Report. The report examines key economic and transactional trends that are likely to impact Canadian homebuyers and sellers, and the broader real estate industry this year. When it comes to the Vancouver housing market, the top trends expected to impact buyers and sellers in 2023 include rising interest rates, the mortgage stress test and low housing inventory, which is compounded by looming demand from move-over buyers and the influx of new immigrants to the city.

For Canadian homebuyers this year, in terms of home interests, more space continues to be a desirable feature, with many still spending a lot of time at home in the wake of the pandemic – especially with new hybrid work models in place. Homes that offer the opportunity for rental income (i.e. rental suites) are also likely to be of greater interest, especially given mortgage qualifying limits, and affordability issues driven by limited supply in most regions across the country including Vancouver.

 “Forgetting the noise and looking at your own personal situation will be key this year,” says Tim Hill, Real Estate Advisor, RE/MAX All Points Realty. “Make a real estate decision based on how it will benefit you and your family, if it makes sense go for it, and if not – don’t follow the herd. Working closely with your realtor to advise on key considerations and factors specific to your own goals will now be more important than ever before. You should be asking your realtor to provide you with the latest news and counsel around these key factors, specific to your own situation.”

Factors for Buyers in the Vancouver Housing Market:

• Buy for long term. Look at your situation and ask yourself if you can be there for at least 5 years.
• Consider your length of mortgage term and ability to service your mortgage if times get tougher.
• There is opportunity in every market and from a long-term perspective this is a great time to consider real estate.

Factors Impacting Sellers in 2023:

• Selling and buying in this market is relative. You aren’t getting quarter 1 2022 pricing, but you also aren’t buying at that rate either.
• Weigh your options of where you are going and how you are going to get there. Don’t sell and figure it out later. Planning is key.
• Forget timing the market. We won’t know for certain if now or six months from now is a better time to sell until the time has passed. Review your situation and make a decision that works for you.