Is your home value about to plummet?

In this crazy market there is a lot of speculation that home prices will fall, but

how do you accurately gauge when to get into the market and estimate when prices will fall. There are some key formulas and market ratios that indicate where things are going. I am going to give you some insights from Adam Lawrenson of Adlaw Appraisals.

Here are his notes from a recent update to mortgage brokers - The Sales to Listing Ratios are an indicator of demand and supply. It is all the completed sales in the last 30 days divided by the total number of active listings. There is downward pressure on prices when the ratio dips below 12 percent for a sustained period, while home prices often experience upward pressure when it surpasses 20 percent over several months. Check out these micro markets:

*Statistics based on sales from July 4 to Aug 4, 2022 and active listings as of August 4, 2022.

It is clear that most areas, and property types are below 12% and have been for a few months. This means there is pressure for prices to continue to decrease in the near future. You will see that some markets are in the +/- 15% which means a more balanced market. Two areas which have a very strong buyer’s market are Surrey and Vancouver West Single Family. Seller’s still have some control to maintain a high price point for their apartments and townhomes in the Burnaby South and North Vancouver areas.

The data suggests most markets being a “buyer’s” market which will push  downward pressure on prices.  

With an expectation of another rate increase, we can likely predict this  trend to continue. As a purchaser you want to balance interest rate with  your purchase price to hit your affordability.  

Give me a call and we can assess your Total Debt Servicing and determine when it’s the best time to buy, based on your affordability.