According to the REBGV, “Home sale and listing resurgence extends into the fall. Home sale and new listing activity remained at near record levels across Metro Vancouver in October”.
“Home buyer demand has been at near record levels in our region since the summer,” Colette Gerber, REBGV Chair said. “This is putting upward pressure on home prices, particularly in our detached and townhome markets.”
“The supply of homes for sale are a critical factor in understanding home price trends,” Gerber said. “The total number of homes for sale in Metro Vancouver is lagging behind the pace of demand right now. This trend favours home sellers in today’s market.”
“While demand remained elevated across the region, home buyer activity was particularly focused in more remote areas like the Sunshine Coast, Gulf Islands and Squamish,” Gerber said. “The rise of work-from-home arrangements and physical distancing policies is causing some home buyers to opt for less densified areas.”
Looking for luxury?
We are seeing sales in the luxury home market which had previously been quiet. Low interest rates are creating the perfect scenario to upsize.
We are still seeing multiple offers. Wondering how to compete in multiples? Check out last our blog on Competing in a Competitive Market to see how you can compete against other buyers and win. Call us, we can help!
The multiple offers are happening across the North Shore. We are seeing competing offers often in the double digits. Condos are slowing down as we see inventory build especially in the luxury segment. Buyers and sellers are proceeding cautiously in the condo arena. Many sellers are testing the market while buyers are looking for a deal. Please remember there are no deals in real estate – there is market value.
Thinking of Buying?
Buyer demand still exceeds current inventory levels. We are seeing 30+ showings at homes within a weekend that lead to multiple offers on a Monday or Tuesday. Serious buyers are doing inspections prior to offering. Please remember to do your due diligence when competing. It is paramount to know what you are buying and if any repairs or deferred maintenance are required. Call us, if you are curious or have questions. We are always happy to hear from you and keep you informed.
We want buyers looking at the home that are truly interested in purchasing the home. Our current COVID protocol when showing homes is in keeping with the REBGV and the Real Estate Council mandate.
- Buyers have already listed or sold their current home,
- Buyers are working with a realtor,
- Buyers are prequalified or have the means to finance the purchase.
Sabeena had a great article last week regarding bridge financing. Many buyers think this is a viable financing term to use in order to purchase first and sell later. It can be expensive and there are requirements for approval. Click here to read Sabeena’s article or give us a call if you have questions about buying or selling first. Every situation is unique. Good information will help you make an informed decision for your family. Call us, we are available and happy to help!
Thinking of Selling?
If you have a home that would be challenging to sell in a normal market (creek, busy street, 2 beds up), this is your time to shine. If you have a family home on a quiet street, buyers want your home. Not sure whether to renovate or sell? Call us, this is your time to leverage location, layout and lot. Call us to find out about capitalizing on your real estate investment or to discuss the current market. We love to hear from you and see you prosper!
What’s happening with mortgages?
Sabeena wrote a great article on What Mortgage Financing Will Look Like in 2021 which you can click here to read.
On the mortgage front, purchasers are often getting better mortgage rates than current homeowners so make sure to push hard on your bank if you are trying to renew an existing mortgage. We are also noticing that it is taking a little extra time to get financing approvals done. Start ahead if you are thinking of making a move.
In a competitive market, sellers are not always interested in granting a 10 day subject removal period when there are other buyers knocking at their doors. It’s also nice to know what you can afford so you stay within budget and do not get disappointed. If you are thinking of purchasing a home, a financing pre-approval is the way to go. We know the best in the business and they put your needs first. Call us!
Any signs of a market slow down?
Yes and no. We expected inventory to slow down leading up to December holidays. We are seeing some great homes come on the market in December which is delightfully surprising to many buyers (and their realtors) still trying to find the perfect home. There has been a lot of speculation about the condo market slowing down and the Canadian real estate market. In a recent Better Dwelling article, RBC, “previously stated a somewhat unusual trend for leading markets. They believe Ottawa, Montreal, Toronto, and Halifax are likely to lag this trend. Typically these markets are trend leaders, but the pandemic boost is believed to provide a cushion. RBC’s forecast is in-line with downturns from other major risk agencies, and non-lender forecasts”.
Open or appointment?
We are still not holding open houses. 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.
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. Our current COVID protocol when showing homes is in keeping with the REBGV and the Real Estate Council mandate.
- Buyers have already listed or sold their current home,
- Buyers are working with a realtor,
- Buyers are prequalified or have the means to finance the purchase.
Thinking of selling but not sure about this muddled market?
If you are curious about selling at this time, call us. We have the answers you need and you will never feel pressure from us to make a move. We are here to support, inform and advise.
We are passionate about real estate and driven to do the best for you – our clients, family and friends. The most important part of our business are the relationships we create and continue long after our clients and friends have sold or purchased their homes. It has been our absolute pleasure to watch your families grow and friends thrive in changing circumstances.
Last month and last week may have been a record, thank you!
November surpassed October and we are over the moon. We love your referrals! We love meeting and working with your dear friends and family. 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.
Last week was busy in a wonderful way! We had 3 home possessions and 4 buyers shopping for homes. It is always exciting for us to hand over keys and help our clients/friends find their forever homes.
What about the numbers?
Another perfect rainy day to curl up with a cup of tea and the stats. Craving a London Fog from End of the Line today! Here’s what happened in November…
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”.
Overall…
The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,116,900. This represents an increase of 9.3 per cent from the MLS® HPI over the last year and 1.2 per cent increase in the last 3 years, up 35.1 per cent over the last 5 years and up 80.8 per cent over the last 10 years. These numbers are slipping slightly from last month. 10 year increase is up from last month. Prices are stable-the index decreased slightly last month by 0.1 per cent. The index increased over the last 6 months by 4.6 per cent.
Buyer demand is intense. Inventory can’t keep up.
There were 94 detached sales in November 2020, down from 128 detached sales recorded in October 2020 up from the 78 sales in November 2019.
The benchmark price for detached properties was $1,671,500 in November. Up 0.4 per cent from October 2020 and up 11.6 per cent from November 2019. This represents an increase of 8.3 per cent over the last 6 months and a decline of 0.8 per cent over the last 3 years (peak of the market but this number is shrinking), an increase of 27.1 per cent over the last 5 years and an increase of 92 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 and the 10 year figures increasing from last months numbers. Great news for anyone thinking about upsizing!
If you have owned your home for less than 5 years, call us to discuss. You can still do well given the rapidly changing market. 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 43.3 per cent and a build up of just over 2 months worth of inventory. This tells us that just over 4 out of 10 homes were priced properly yet nearly 6 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 28 days – about a week longer than last month. Homes are selling on average for nearly 99 per cent of list price, an increase of 0.7 per cent from last month.
The detached inventory peaked in June at 344. Inventory was at 271 listings last month. Inventory is down from 279 from last month.
The pandemic is not deterring sellers or buyers from making a move. We are seeing homes listed and sell quickly when priced correctly. Consumers feel safe with the process of buying and selling and are proceeding with their plans.
North Vancouver saw 128 apartment sales in November 2020 down slight from the 142 in October 2020. The benchmark price of an apartment property is $585,300, a 7.3 per cent increase from November 2019. This represents an increase of 1.4 per cent over the last 6 months and an increase of 2.7 per cent over the last 3 years, an increase of 48.3 per cent over the last 5 years and an increase of 69.1 per cent over the last 10 years. Many of these figures have decreased slightly since last month. Call us if you are curious about whether or not now is the time to sell a condo. Every situation is unique.
The condo market is a seller’s market with a sales ratio of 35.6 per cent and a build up of nearly 3 months worth of inventory. The average condo listing sat on the market for 30 days on par with last month. Condos are selling on average for 96.9 per cent of list price. Just over 3 out of 10 sellers priced their condos correctly while nearly 7 out of 10 sellers did not. Buyers are informed, savvy and value driven. Buyers also have access to funds they could not acquire before given the low mortgage rates. Lots of first time buyers are getting into the market which is great!
Attached property sales in November 2020 totalled 34. The benchmark price of a North Vancouver townhome property is $1,031,400 which represents an 10.1 per cent increase from November 2019. This represents an increase of 5.9 per cent over the last 6 months, an increase of 4.9 per cent over the last 3 years, an increase of 42.5 per cent over the last 5 years and an increase of 83.6 per cent over the last 10 years. Townhomes are in demand. Many buyers are looking for space but cannot afford a detached home. This is the time to sell and maximize your return. If you are thinking about selling your townhome, call us.
The attached market is in a seller’s market position with a sales ratio of nearly 32.7 per cent and a build up of 3 months worth of inventory. The average attached listing sat on the market in November for 22 days which is equal to October 2020. Attached properties are selling for just over 98.9 per cent of list price and 3 townhome sellers out of 10 priced their homes appropriately for the market while 6 did not. We are seeing speedy sales for townhomes. Call us to find out which neighbourhoods are in demand!
Looking for more info? Call us, we are always happy to help.
Data courtesy of the BCREA, REALTOR® Report, REBGV and SnapStats®