Vancouver Real Estate Market Update – February 2020
February 2020 statistics have been released. Selling rate in Metro Vancouver increased from 17% in January to 22% in February. However in this blog, we will explain what it all means. It may not be what you think. Please read on to “Alex’s Inner Circle Intel” section.
Supply dropped again, pushing up the activity and price. The current state of the market remains an “Honest Market”. Sellers who are overpriced, will not be able to sell. Buyers who want to lowball, will not be able to buy. It takes both sides to be sincere and honest to come to an agreement. In other words, it’s the perfect market to Sell and Buy (to move).
Are you or anyone you know thinking of Selling, Buying, or Both this year? Please reply to this email or call/text Alex at 604-374-5534 for a brief conversation to discuss options. Knowledge is value.
According to the Real Estate Board:
VANCOUVER, BC – March 3, 2020 – February saw steady home buyer demand and reduced home seller supply across Metro Vancouver.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,150 in February 2020, a 44.9 per cent increase from the 1,484 sales recorded in February 2019, and a 36.9 per cent increase from the 1,571 homes sold in January 2020.
Last month’s sales were 15.6 per cent below the 10-year February sales average. “Home buyer demand again saw strong year-over-year increases in February while the total inventory of homes for sale struggled to keep pace,” Ashley Smith, REBGV president said. “This was most pronounced in the condominium market.”
“Our Realtors are reporting increased traffic at open houses and multiple offer scenarios in certain pockets of the market. If you’re considering listing your home for sale, now is a good time to act with increased demand, reduced competition from other sellers, and some upward pressure on prices,” says Smith.
Alex’s Inner Circle Intel
Reading between the lines, and looking at the numbers, the Board is correct that the activity and prices are picking up, resulting in multiple offer situations. We have already encountered and sold numerous homes in the past 2 months and resulted in multiple offers. However, it is important to know the market segment that this is occurring in.
As the Board stated above, it is mostly the Condo market. But it’s not just any Condo Market…it’s the relatively lower price range in each area in Vancouver. The trigger started when the overall priced dropped just over 18%. Why is this important? When traditionally the higher price range market leads the lower price range markets, what has happened in the last few years that would trigger a sudden surge in the lower priced market and not the higher priced ones, and specifically at around the 18% price drop period?
The Mortgage Stress Test. The Stress Test introduced 2 years ago, had essentially affected the Buyers borrowing power by about 18-20%. This just leveled off, causing the pent up pressure from that submarket to flood. With the new Mortgage Stress Test rules that’s starting next week, this would be more pronounced in the following couple of months.
So what does this mean? If you are looking to Sell this year, and especially if you are moving up, CALL US ASAP. This surge will not last past a few months, and it will be balanced again with fluctuating market values. Take advantage of the current situation if you can.
As usual, we are here to provide some detailed relevant information segmenting different markets, to make it more applicable to your situation.
At the bottom of this email, you will find a copy of the Snap Stats, which is one of the tools we utilize to provide value to our clients. Please do feel free to call Alex at 604-374-5534 to discuss in more detail with regards to your specific areas.
In the Snap Stats attached below, you will find the activity of the different price ranges per area. As a rule of thumb, sales ratio under 12% represents a downward pressure (Buyers’ market). Sales ratio between 12% to 20% represents a balanced market. Sales ratio above 20% represents an upward pressure (Sellers’ market).
If you are looking to make a move of any sort, Call or Email Alex to arrange a quick 30-minute chat to see whether it’s right for you right now. Everyone’s priorities and timing are different, and you need to equip yourself with the best and most relevant information for you and your family. Plan early, so you know when to execute for the highest profits.
WHAT DOES THIS MEAN TO YOU?
Sellers – Market it fully, and PRICE IT RIGHT! Most sold homes in this market, are getting within 2-5% of the listing price. This is when an experienced Realtor can make a difference. Buyers are waiting for your home to come up for sale due to low supply, and you have to make them want it. Make sure you fully understand the relevant market prior to proceeding. If you are looking to sell, please call Alex at 604-374-5534. You want the LOCAL EXPERT on your side!
Buyers – If you are looking to purchase a property, be sincere in your offers. Dragged out negotiation processes will hurt you. Do your homework, talk to your realtor, and understand where the market value is. This market will not stay forever. You still don’t need to overpay, but be sure you are READY and DECISIVE. Opportunities are still available, and you need to make sure you are going in with a realistic mindset by being equipped with a Comparative Market Analysis, and to be more ACTIVE in your search. If you are looking to buy, please call Alex at 604-374-5534. We would be privileged to assist if you are in need of expertise.
Details matter in this market. You have to go in with your eyes wide open. If you need any guidance or assistance, please do reach out and call Alex at 604-374-5534, or simply reply to this email. I look forward to helping you and/or your family and friends with all your Real Estate needs.