Inflation, supply chain and interest rate hikes lead to 'strategically' priced Vancouver real estate
Real estate trends are starting to shift, and it can be hard for would-be buyers and sellers to keep up.
While most reports focus on real estate for the average homeowner, the luxury market is also being impacted.
CTV News spoke to a Realtor about what those involved in real estate at that level should know before they start shopping.
Her answers will likely be helpful to those at all levels of the market, not just those dealing in properties worth millions.
Question: What trends have you seen in the luxury market over the last few months?
Answer from Faith Wilson, president and CEO of faithwilson | Christie's International Real Estate: Trends don't happen overnight.
In the past few months and to date, we are experiencing a layering of things that affect real estate markets – supply chain issues, inflation and interest rate hikes for example.
The luxury market can be an $8-million home or a $50-million home, and there are potential differences in how they fluctuate.
The properties have to be priced strategically to reflect the current market conditions and in anticipation of how we believe the market will play out.
People still want to negotiate regardless of the price point; everyone wants to feel like they have won.
We currently see tighter movement in the mid-tier of the luxury real estate market, around $6 million to $8 million. The higher ends of $10 million-plus and $20 million-plus continue to see similar levels of activity relative to previous months prior to the interest rate hikes.
Question: Do you expect to see sales decreasing or increasing in the coming months?
Answer: Realtors who are actively working in the marketplace will start to see market shifts prior to the statistics coming out that bear fruit to what they are experiencing.
We are seeing a little slow-down in sales, and this softening will likely continue in the coming months.
When new policies are implemented, and also having come off a stellar previous year of (exponential) increase in sales points, it stands to reason that there may be a "wait and see" attitude among purchasers and sellers alike as they try to make sense of a changing market.
Supply and demand are always key factors, and currently, the supply is still low.
The supply/demand ratio needs to be understood from a granular neighbourhood perspective and from the property type (condominiums, attached properties and single-family homes). It's clear that areas and neighbourhoods and property types don't react the same way across the board.
Question: Luxury homes are often on the market for some time (for example, this mansion has been for sale for two years, and the price recently dropped. Why is this the case?
Answer: Simply put, the more expensive a property is, the number of buyers that can afford that property diminishes.
An important note is that the number of days on the market is, to a certain degree, correlated with value and pricing – although it is interesting that you can have an amazing property that you put on the market, and if the right buyer is there, it sells quickly.
Question: What can you tell us about the buyers of luxury homes, and have you found the foreign buyers tax a deterrent?
Answer: B.C.'s luxury buyers can come from anywhere, but there are many local buyers.
Of course, as Canada has always had a large immigrant population and is recognized for its diversity, people often want to move to Canada. When they look at where in Canada they want to relocate, B.C. stands out with its scenic natural mountain and water landscape, excellent schools and cultural diversity.
Our buyers are coming globally, although most appear to have Canadian citizenship or permanent residency.
(The tax) is an important topic and one we should be paying close attention to, but questions around it are better directed to provincial and federal real estate associations.
What I can tell you is we don't anticipate the foreign buyers' tax will affect our luxury property listings, as many buyers we're seeing are from the Lower Mainland, Okanagan and Canada in general.
Some of Wilson's answers have been edited for clarity and length.
Vancouver Top Stories
CTVNews.ca Top Stories
Patrick Brown is alleging political corruption played a role in his disqualification from the Conservative Party of Canada's leadership race, a move that came following allegations that his campaign violated election financing rules.
Despite being disqualified by the Conservative Party of Canada from becoming its next leader, ousted candidate Patrick Brown's name will still appear on the ballot.
Video has emerged showing a worker dangling in the air above a Toronto construction site after accidently getting entangled in a tagline attached to a crane.
The federal government has no intention of dropping the controversial ArriveCan app because it gives the Public Health Agency of Canada (PHAC) key health information about travellers who test positive for COVID-19 through testing at airports and land borders, senior government sources tell CTV News.
Air Canada and Toronto's Pearson airport again claimed the top spots for flight delays on Tuesday, marking at least four days in a row where the country's biggest airline has placed No. 1 of any large carrier worldwide.
Air Canada said on Wednesday it will not allow animals in the baggage hold until Sept. 12 due to 'longer than usual' delays at airports, as carriers and airports wrestle with complaints over lost luggage and long lines.
As gas prices slightly trend down this week after some of the highest national averages seen in recent months, some Canadians may be thinking twice before planning their usual summer road trip plans. CTVNews.ca looks at how drivers can save at the pumps while travelling.
Prices have been easing slightly recently, but affording a mortgage is still a very difficult task for many Canadians. How much of a mortgage can you afford? Contributor Christopher Liew breaks it down in an exclusive column for CTVNews.ca.
A federal judge Wednesday sentenced Jerry Harris, a former star of the Netflix documentary series 'Cheer,' to 12 years in prison for coercing teenage boys to send him obscene photos and videos of themselves and soliciting sex from minors at cheerleading competitions.
Investigators say a man was lying in the roadway when he was struck and killed by a vehicle near Courtenay, B.C., on Wednesday.
The driver of a logging truck was airlifted to hospital in Victoria after he was pinned inside the vehicle following a rollover crash on Wednesday morning.
The number of Vancouver Island marmots in the wild increased this week, with 10 of the critically endangered rodents released onto a Mount Washington ski run.
Calgary drivers might be asking why the price of gasoline is more expensive in their energy rich province where oil is refined and extracted than in Ontario, but one retail expert claims to have the answer.
Police are investigating after receiving reports of shots fired late Wednesday afternoon in Bankview.
Blackfalds RCMP were called to the scene of a serious hit and run collision Wednesday evening.
Wade Stene, who admitted to kidnapping and sexually assaulting an eight-year-old Edmonton girl, was sentenced to 15.5 years behind bars Wednesday afternoon.
Emergency crews were called to a Mill Woods school on Wednesday after a security guard reportedly experienced irritation on their hands after finding a white powder.
Blackfalds RCMP were called to the scene of a serious hit and run collision Wednesday evening.
'I cannot get any rest': Residents complain of sleepless nights after alleged nightclub opens up under condo
Residents living in Toronto’s west end say they have been left utterly exhausted after an alleged nightclub opened up at the base of their condominium.
Ontario has likely entered a new wave of the pandemic driven by the more infectious BA.5 subvariant, the province’s science advisory table says.
A mother from Nova Scotia is speaking out about her recent travel experience through Toronto Pearson Airport after a WestJet flight delay left her and her daughters sleeping on a nursing room floor.
WATCH LIVE @ 9 A.M.
WATCH LIVE @ 9 A.M. | With another COVID climb, Quebec health minister calls news conference for Thursday morning
With COVID-19 cases and hospitalizations on the rise in Quebec, public health officials have called a news conference for Thursday morning.
'Not a time when Quebec can afford to lose young doctors,' province's opposition leader says of ER exodus
The leader of Quebec's Liberal Party paused her vacation briefly on Wednesday to react to the news that two young emergency room doctors have quit their jobs in their hometown of Montreal to work in Toronto.
A prominent Montreal drag queen who recently faced pressure from critics over library readings to young children says her storytime events scheduled for the fall were abruptly called off for unknown reasons.
A political breakup at Winnipeg City Hall is creating intrigue in a council race.
A community organization is proposing a network of cameras in an effort to bolster safety throughout the area.
Residents in a southern Manitoba town are asking questions as to why they are facing a summer with no emergency room.
A crash involving a fire hydrant was the first in a chain of events that led to a chaotic scene in a Saskatoon intersection.
Starting Thursday, riders looking to take Access Transit to get to their destinations will notice a shift in service over the next three weeks.
Two Ukrainian refugees, a brother and sister, are settling into their new home in Saskatoon.
The city’s executive committee discussed possible upgrades for Regina’s recreation facilities and event venues during a meeting Wednesday.
'I feel like I have everything to lose': Riders' Tevin Jones looks to maintain place on active roster
Wide Receiver Tevin Jones got his first regular season Canadian Football League (CFL) start in week four and will look to continue the momentum against Ottawa.
SaskEnergy has gained ownership of its Regina head office building following a decade long legal battle.
A person has been taken to hospital with serious injuries following a shooting in Halifax Wednesday night.
Halifax Regional Police and fire crews are investigating after receiving reports of a missing swimmer in Dartmouth.
The ex-boyfriend of Cassidy Bernard has been sentenced to 15 years in prison for manslaughter and a consecutive three years for child abandonment in connection with the young mother's death.
Once again due to staff shortages, the emergency departments at both Listowel and Wingham hospitals will be closed overal several upcoming dates.
Provincial police have identified the victim of a deadly motorcycle collision that occurred earlier this week.
The victim of a fatal head on collision earlier this week in Blandford-Blenheim has been identified as a 41-year-old man from Plattsville.
Christ the King Church in Sudbury is looking for your scrap vehicle.
Whether you’re looking for a change of pace, a breath of fresh air, or a glimpse into nature, northern Ontario has an outdoor oasis waiting to be discovered.
The chair of the Station Mall Merchants Association says news of the mall's sale to a southern Ontario holding company brings to a close years of uncertainty regarding the future of the property.
Break-ins targeting restaurants, salons, dress shops and cannabis stores have been reported in Kitchener, Waterloo and Woolwich.
'There’s no great answer': Low-income tenants weigh options in Cambridge as renovations push them out
Tenants of the Tiger Lofts, an affordable apartment building in Cambridge, say they’re being “renovicted” and won’t be allowed to stay after extensive renovations.
Police are looking for a man who allegedly grabbed and sexually assaulted a woman in a Kitchener park.