OVERALL MARKET SUMMARY

successfully launched and achieved an overall absorption rate of over 50 percent, attracting hundreds of attendees. Developers are expected to release more inventory into Metro Vancouver in the coming year, and well-located and positioned projects with attractive incentives are likely to generate pre-sale activity.

Overall, the active listings for multi-family homes decreased by 36 percent compared to the previous quarter but increased by 88 percent compared to the same quarter last year. The active listings for the High Rise, Low Rise, and Townhome sectors decreased by 31, 39, and 43 percent, respectively, compared to the previous quarter.

In conclusion, while the Fourth Quarter of 2022 saw a decrease in the resale market due to higher borrowing rates, there were still positive developments in the new home market and optimism for the future with a potential pause on interest rate increases and the release of new inventory in the coming year.

Q4 — Observations and Opinions

The Bank of Canada’s decision to raise the overnight lending rate twice during the Fourth Quarter of 2022 was part of the trend established in early 2022 to combat inflationary pressures. The increase brought the overnight lending rate up to 450 basis points, which has continued to impact the sentiment of potential home buyers. Higher borrowing rates have resulted in a decrease in home buying activity and an increase in demand for rental housing.

Despite this negative impact, there is still optimism in the real estate market, as indicated by BoC Governor Tim Macklem’s recent address in January. In his address, he indicated a conditional short-term “pause” on further rate increases, leading to the belief that interest rates may have peaked in 2023. This sentiment was reflected in the successful launches of multiple projects in the Fourth Quarter of 2022, which achieved an overall absorption rate of over 50 percent and attracted hundreds of attendees.

Developers are expected to release more inventory into the Metro Vancouver area in the coming year, and projects that are well-located, well-positioned, and offer attractive incentives are likely to generate pre-sale activity. This positive outlook for the future, combined with the successful launches in the Fourth Quarter, suggests that despite the impact of higher borrowing rates, the real estate market remains optimistic and continues to attract investment and interest.

Notable projects that could launch in the First or Second Quarter of 2023 include: Vancouver Downtown – Brivia Group’s CURV, Marcon’s 2030 Barclay; Vancouver West - Solterra’s Italia, Alabaster’s Thesis, Forme Properties SOTO on West 28th; Vancouver East - First Track Development’s Woodland Block, Streetside Developments’ Bailey; Burnaby - Anthem’s South Yards (Phase 1), Polygon’s Perla, Kingborn’s Koi; North Shore -Polygon Homes’ Lennox; Tri-Cities - Townline’s Terrayne, Onni Group’s Pine & Glen; Richmond/South Delta – Westmark Development’s Camden Square, Executive Group Development’s West Coast Estates (Condos); South Surrey/White Rock - Gramercy Developments’ The Loop; Central Surrey/ North Delta - Concord Pacific’s The Piano, Westland’s Core, Landa Group’s Lucent; Langley/Cloverdale – Inspira’s Insignia, Mortise’s Unison, Streetside Development’s Cascadia; Abbotsford/Mission - Pacific Hills Development’s Westminster Plateau, AB Wall’s Highstreet Village Phase 3, Redekop Faye’s Jacob; Ridge-Meadows - Pacific Vision Development’s La Riviere.