“We’re seeing the results today of pent up activity, from both home buyers and sellers, that had been accumulating in our market throughout the year,” Colette Gerber, REBGV Chair said. “Low interest rates and limited overall supply are also increasing competition across our market.”
“Safety remains the top priority for our REALTOR® community,” Gerber said. “We continue to limit in-person interactions with clients and employ different technology solutions to ensure home buyers and sellers can get as much information as possible in a virtual setting.”
According to REBGV, “The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,031,400. This represents a 4.5 per cent increase over July 2019 and a 0.6 per cent increase compared to June 2020.”
From the REBGV, “Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months”.
Sales were up in July compared to June, the average composite price was up. Buyers and sellers are comfortable with the new home buying and selling processes. The long weekend has historically meant for the start of a slow August real estate market. We will have to wait and see what the COVID effect is for a normally quiet month.
While the REBGV has removed the ban on Open Houses, we will be continuing to operate with a showing schedule, buyer’s agent/buyer qualifications process and COVID personal protection equipment. We do not feel it is in the best interests of our clients to open the doors to their home without these measures of control and safety in place. Your safety and the safety of the public is of paramount concern to us.
We continue to see multiple offers in the low to mid range. Buyers are shopping. As realtors, it is our job to prequalify the buyer viewing our seller’s home. We want buyers looking at the home that are truly interested in purchasing the home. We are asking pre-qualifying questions like “Has your buyer sold”, “Has your buyer driven by the home”, “Has your buyer reviewed all the documents”. If there is anything unique about the home, we ask if the buyer is aware of it. We have found this speeds up the selling process and weeds out any lookie-loos, tire kickers, curiosity seekers or those looking for renovation ideas. We have found the use of Matterport technology to be a huge help as buyers prequalify a home prior to viewing. For more info, check out our blog post about why homes do not sell.
“Gradual loosening of COVID-19 restrictions, low mortgage rates and pent-up demand could help the recovery,” said Brendon Ogmundson, chief economist for the B.C. Real Estate Association. “This kind of recovery was seen after recessions in the early 80s, 90s and after the 2008 financial crisis. It’s a really unusual time and a really unusual recession,” Ogmundson said. “We’re not going to get all the way back to normal right away, but we’re on a nice path.”
Of note, the latest info regarding employment is out. From Brendon Ogmundson, “Employment in BC grew by 70,000 jobs (3%, m/m) in July, reaching almost 94% of the February employment level. This followed job gains of 118,100 in June and 43,000 in May. July’s employment gain brought down the unemployment rate by 1.9 percentage points to 11 per cent. In Vancouver, employment increased by 48,000 jobs to reach almost 90% of the February level. Compared to one year ago, employment in BC was down by 7.5% (-192,000) jobs. ”
“This was another good news report. However, gains in July were lower than in June, reflecting reopening measures that began in June where employment growth was coming back from very low levels. We can expect that recovery will be slower from here on, as many of the hardest hit industries have reopened and will continue to maintain physical distancing measures. Also important are consumers’ demand for goods and services, which is expected to be hampered by the still 165,000 unemployed individuals in BC since February, and the winding down of government support programs.” To read the entire article check out our blog post here.
If you need to sell or are curious about selling at this time, call us. We have the answers and you will never feel pressure from us to make a move. We are here to support, inform and advise. Check out our recent blog post from the RECBC on selling a home here. If you are wondering about buying process click here to read our recent blog post from the RECBC on buying a home. Call us with any questions!
We are passionate about real estate and driven to do the best for you – our clients, family and friends. We love your referrals. Referrals keep our business thriving. Referrals and repeat clients are the core of our business. Thank you for your referrals, inquiries and phone calls so far this month.
Here are the numbers…
The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,090,200. This represents an increase of 6 per cent from the MLS® HPI over the last year and a decrease of 0.7 per cent over the last 3 years, up 42.4 per cent over the last 5 years and up 73 per cent over the last 10 years. The numbers indicate that past pricing gains have given North Vancouverites a cushion against COVID-19’s economic impact. Prices are stable-the index increased slightly steady last month by 1.6%. The index increased over the last 6 months by 4.3 per cent. This is good news!
There were 101 detached sales in July 2020, higher than the 84 detached sales recorded in June 2020 up 33% from the 76 sales in June 2019.
The benchmark price for detached properties was $1,601,000 in July. Up 2.4% from June 2020 and up 7.6% from July 2019 up. This represents an increase of 4.1 per cent over the last 6 months and a decline of 6.9 per cent over the last 3 years (peak of the market), an increase of 34 per cent over the last 5 years and an increase of 77.4 per cent over the last 10 years. Meaning, if you are thinking about selling your home and have owned it for 5 years or more, you will do exceptionally well. We are encouraged to see the declines shrinking from last months numbers.
If you have owned your home for less than 5 years, call us to discuss. Our goal is to make sure you make the best financial decision for you and your family. We provide information, knowledge and options so you can do that!
The detached market is a sellers market with a sales ratio of 32 per cent and a build up of about 3 months worth of inventory. This tells us that just over 3 out of 10 homes were priced properly yet 7 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 35 days. Homes are selling on average for 96.5 per cent of list price. The detached inventory peaked in May 2019 at 475. For 2020, inventory peaked in June at 341. Inventory was at 317 listings last month. COVID-19 is not deterring all sellers and buyers from making a move. We are seeing homes listed and sold. The process has changed. We find consumers are feeling comfortable with the process and are proceeding with their plans. This sentiment was echoed in the news and by the REBGV.
North Vancouver saw 119 apartment sales in July 2020 consistent with June 2020. The benchmark price of an apartment property is $582,600 (up 1.3% from June 2020), a 5 per cent increase from July 2019. This represents an increase of 4.3 per cent over the last 6 months and an increase of 5.8 per cent over the last 3 years, an increase of 55.3 per cent over the last 5 years and an increase of 69 per cent over the last 10 years.
The condo market is a sellers market with a sales ratio of 30 per cent and a build up of just over 3 months worth of inventory. The average condo listing sat on the market for 23 days. Condos are selling on average for 97.8 per cent of list price. About 3 out of 10 sellers priced their condos correctly while 7 out of 10 sellers did not. List prices need to be sharp to generate interest, even an extra $10,000 to $20,000 on a condo list price can have a negative impact. Buyers are informed, savvy and value driven. We know how to maximize buyer appeal and your sale proceeds.
Attached property sales in July 2020 totalled 41. The benchmark price of a North Vancouver townhome property is $1,001,000 which represents an 5.9 per cent increase from July 2019. This represents an increase of 5.5 per cent over the last 6 months, an increase of 5.2 per cent over the last 3 years, an increase of 51 per cent over the last 5 years and an increase of 71.4 per cent over the last 10 years. These numbers are increasing which is great news for townhome owners. Townhomes are in demand and inventory is in short supply. If you are thinking about selling your townhome, call us. Now is the time!
The attached market is in a seller’s market position with a sales ratio of 35 per cent and a build up of nearly 3 months worth of inventory. The average attached listing sat on the market in July for 14 days which is consistent with June (17 days). Attached properties are selling for just over 99.6 per cent of list price and nearly 4 townhome sellers out of 10 priced their homes appropriately for the market while 6 did not. We are seeing multiple offers for townhomes and sale prices over asking.
Looking for more info? Call us, we are always happy to help.
Data courtesy of the BCREA, REALTOR Report®, REBGV and SnapStats®