The Adlaw Report (January 2023 Edition) 2023 Assessments, Market Update & 2022 In Review
Hi, I am Adam Lawrenson, owner of Adlaw Appraisals. We are a residential and commercial real estate appraisal firm servicing Greater Vancouver and the Okanagan areas. Our mission is to help mortgage advisors get more deals done in less time while making you look like a rock star! This edition will discuss real estate values, where they are and perhaps where they are going as well as a promotion you won’t want to miss. Thank you for reading the December 2022 issue of The Adlaw Report.
Market Value Update
2022 ended on a low note, with values declining rapidly since March / April 2022. The values you will expect today or 10-20% down from the highs, and down 0-10% from last December. Apartments in GVA were the only property type to show a 1.7% increase from December Last year. These are agregate # numbers and real estate is nuanced to say the leat. Some key findings:
- Sales volume down 50-60% from last December
- Listings down 37-38% from last December
- Sales Volume hit a historical low in December
Sales to Listing Update: (as of January 5, 2023)
What is a sales to listing ratio? The ratio between the number of homes sold in the last 30 days versus the number of total listings in the market. Why is it important? It is a point in time indicator of demand and supply of housing in a specific area and provides excellent information for buyer’s, seller’s, realtors and valuation experts who cannot afford to wait 3-4 weeks until monthly stats are available. Generally speaking, a downward market (buyer’s market) is when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure (seller’s market) when it surpasses 20 per cent over several months.
Today, I have only added single family ratios in the Fraser Valley and GVA. Moving forward I will add apartments & townhouses as well as the Okanagan Region. Some key findings:
- Fraser Valley Average is 6.37%
- GVA Average is 7.74
- North Surrey has only 5 sales in the last 30 days and 184 active listings.
- Coquitlam, Ladner, Pitt Meadows and Port Coquitlam are all showing a “balanced market” in terms of sales to listings.
2023 BC Assessments
The 2023 BC Assessment is based on a July 1, 2022 valuation date. Most homeowner’s will see an increase in their assessed value. Having worked at BC Assessment for two years, I am well aware of the discrepancies between assessed value and market value. The assessed values are based on limited information and are a result of algorithms and mass appraisal techniques which have their limitations. Market values since July 1, 2022 to today have gone down roughly 7-17% throughout the Lower Mainland. With that said, if you are speaking with homeowners, you can manage their expectations by having this knowledge. Of course, if you are a regular broker client of Adlaw Appraisals and you have a file that Adlaw can complete for you, you can always use our ball park estimate service for a more accurate ball park market value estimate of the property. If you are a homeowner, you can order a tax-appeal appraisal to help lower your value and hence, your taxes. ORDER NOW BEFORE JAN 31, APPEAL DEADLINE
Happy New Year folks, wishing you all an amazing 2023! To all that support Adaw Appraisals, thank you and Happy New Year!