Despite the fact that detached home values appreciated in the first quarter of 2022, the second quarter saw those same prices soften, reigniting home buying activity in Greater Toronto and Vancouver.
In Greater Vancouver, 75% of markets saw downward pressure on prices between Q1 and Q22. This was especially staggering considering that many Vancouver markets reported peak levels in the first quarter. Whistler/Pemberton saw the more significant depreciation of around 16% between the two quarters, followed by Delta – North in the Fraser Valley, which saw around a 13% drop. The rest of the GVA markets saw declines below 10%.
Price drops and a sweeping return to traditional in-office work have sparked buying activity in Greater Toronto and Vancouver. “For those buyers that were active in Q2, improved housing affordability due to easing prices and the threat of higher rates down the road clearly provided the impetus for many to leap into detached home ownership,” says Alexander. “Greater selection, particularly in coveted hot pockets, also played a significant role in April and May as the pandemic-fuelled buying spree drew to a close. Buyers locked into five-year fixed terms as the overnight rate hovered between 1% in early April to 1.
Meanwhile, within Greater Vancouver, Burnaby, Coquitlam and Port Coquitlam have attracted buyers after affordability and centrality. North Vancouver and Squamish have also registered strong buyer interest and sales activity.