Before the fall.

Like the observant sage Post Malone once said, “seasons change.” The fall market always brings its own adventure, and we’re here to help you navigate what could be coming. Here’s what a traditional fall market looks like, and what this particular fall market could have in store for us.

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Season’s greetings.

Generalists, summary-lovers, no-fear Shakespeare readers, lend us your ears. You’re going to like what follows. For everyone else, know that everything we’re going to say about a typical fall real estate market is not hard truth. Every year is different, but there are without a doubt seasonal similarities. Especially amongst fall markets that didn’t happen to take place during a pandemic. Yes, we’re referring to that somewhat memorable global event responsible for your never-ending Zoom calls and newfound passion for sourdough fermentation—that pandemic.

baking

Before COVID-19, the seasonal effects of a fall real estate market were pretty noticeable - and they’re ones that could well return this fall, so listen up. For sellers, there’s lots to love. Pre-miserable Vancouver winter weather means that open houses still attract crowds, and many prospective buyers are incentivized to start their home search with a renewed sense of urgency. The impending winter lull in listings is palpable, which typically pushes homeseekers to act.

For buyers, it’s common to see new inventory enter the market in the fall, in addition to the repositioning of homes that did not sell during the summer. Sellers who don’t want to move during the cold winter months or over the holidays are motivated to close quickly, which means there’s typically more room for negotiation - a benefit for buyers.

All that being said, the seasonality of the real estate market is always at the mercy of market conditions, and this year will be no exception to that rule. Now that you know what a typical fall market looks like, let’s take a look at what this fall market might look like. But first…

How we got here.

The journey to fall 2022 has been a lot of things, but boring is not one of them. We took the long way round, the scenic route, just like Frodo and Sam. Before we look at where things are headed, let’s review how we got here.

adventuretime

Interested is interesting.

interest

Interest rates have made more moves this year than the Canucks front office, with hikes being announced in April, June, July and September. Rate hikes make borrowing money more expensive, which in turn has led to a cooler market this summer than in recent years past.

Money doesn’t grow on trees.

The main reason rates are rising is to tackle inflation, which has risen rapidly over the past year. From the grocery store to the gas station, price jumps can be felt across the country.

Rapids ahead.

uncertainty

Interest rate hikes and inflation don’t necessarily signal calm waters ahead, which is a large part of what led to the summer slowdown. Talks of a recession have been in the news regularly, and consumer confidence has been fledging. With uncertainty being the word of the day, fewer and fewer homeowners chose to list properties this summer. So what does this mean for the fall?

Here and now.

For starters, it could signal the return of inventory. September’s rate hike could well be the last of the year, and an indication of that from the Bank of Canada would calm the waters of uncertainty. For agents and buyers, a typical fall market where more sellers come off the sidelines would be a welcomed occurrence. There’s no doubt that rate hikes scared buyers, which in turn scared sellers - but at the end of the day, not everyone can stay put forever. While plans can be put on hold, anyone interested in upsizing or downsizing will need to act at some point, and the fall has traditionally been one of those seasonal points. For agents, it’s time to prepare for a fall market with a lot of opportunities.

Rising rental prices are another factor that could come into play here. Renters in Vancouver just experienced the most dramatic rent increase of 2022, which could push some renters towards making a purchase.

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The future isn’t what it used to be.

Will sellers return? Will buyers meet them at the door? Only time will tell. One thing’s for sure—the fall real estate market is about to get underway, and we’ll be here to help guide you through it.

Millions of homeseekers trust REW to help them find their next home every month. If you’re an agent preparing for a busy fall, REW can help you reach buyers and sellers with ease. Join the best agents in Canada and meet the future of the Canadian real estate industry in One power-packed platform.