February Market Update



“With home sale activity well above our January average, the supply of homes for sale isn’t able to keep pace,” Colette Gerber, REBGV Chair said. “This is causing increased competition amongst home buyers and upward pressure on prices.”

“Shifting housing needs during the pandemic and historically low interest rates have been key drivers of demand in our market over the last six months,” Gerber said. “People who managed to enter the market a few years ago, and have seen their home values increase, are now looking to move up in the market to accommodate their changing needs.”

Market Predictions for 2021? 

According to a recent Vancouver Sun article, “The first six months of 2021 will be crucial … to setting up the (sales and price) trends for the next years,” said Eitel.

“If homeowners who have been stretching to keep up with mortgage payments since buying their homes in 2016, possibly for more than what they are worth now, see current rising values as an incentive to put their properties on the market rather than continue holding them, it could increase the supply of detached homes for sale and temper price gains, he said.”

“The average price (then) was $1.790 million, and 11,400 sales occurred in Greater Vancouver. The overwhelming majority will be up for the five-year mortgage renewal in the (first half) of 2021.”

“It wouldn’t be impossible to see 20 per cent of those (sales) come to market in an attempt to stem the losses. That could result in an increase of 2,200 (units of) additional inventory,” wrote Eitel.

Thinking of Buying?

Buyer demand exceeds current inventory levels. We saw 67 showings at a townhome over a weekend and 13 offers with a final sale $226,000 over asking. Two other townhomes were in multiple offers the same day with 4 offers over asking on one and 3 subject free offers. The second had 13 offers. Both sold over asking. This is a direct result of low to no inventory. Townhomes are in demand. Buyers cannot make the leap from a condo to a detached home. The desire to have more space with a more confined budget make townhomes very desirable.

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.

Our current COVID protocol when showing homes is in keeping with the REBGV and the Real Estate Council mandate.

  1. Buyers have already listed or sold their current home,
  2. Buyers are working with a realtor,
  3. Buyers are prequalified or have the means to finance the purchase.

Thinking of Selling?

Don’t wait until Spring, NOW is a great time to sell!

Here’s why:
  • Buyers are actively searching (interest rates are low, demand is high, expiring rate holds)
  • Inventory is low (sellers’ market, market is brisk)
  • First time home buyers want to get into the real estate market and many current home owners are looking to upsize

Being homebound is spurring buyers to move. We are seeing homes list and sell quickly when priced correctly. Consumers feel safe with the process of buying and selling and are proceeding with their plans.

If you’re thinking about listing your property, give us a call, we can leverage the current market conditions to get you the most money and help make the process as seamless and stress-free as possible.

What about the numbers?

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 $1,134,700. This represents an increase of 8.6 per cent from the MLS® HPI over the last year and 3.1 per cent increase in the last 3 years, up 31.5 per cent over the last 5 years and up 87.5 per cent over the last 10 years. The index increased slightly last month by 1.1 per cent. The index increased over the last 6 months by 4.1 per cent.

Buyer demand is intense. Inventory can’t keep up.

There were 45 detached sales in January 2021, down slightly from 81 detached sales recorded in December 2020 up from the 24 sales in January 2020.

The benchmark price for detached properties was $1,722,300 in January. Up 1.1% from $1, 702,600 in December 2020 and up 12% from $1,537,500 in January 2020.  This represents an increase of 7.6 per cent over the last 6 months and an increase of 2.9 per cent over the last 3 years (peak of the market), an increase of 22.8 per cent over the last 5 years and an increase of 100.6 per cent over the last 10 years. Meaning, if you are thinking about selling your home and have owned it for 10 years or more, you will do exceptionally well. It’s a great time to upsize or downsize!

If you are thinking about a move, call us to discuss. You can 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 32 per cent and a build up of 3 months worth of inventory. This tells us that 3 out of 10 homes were priced correctly for the market yet nearly 7 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 40 days – consistent with last month. Homes are selling on average for nearly 100.2 per cent of list price, a increase of 2.4 per cent from last month.

The detached inventory peaked in June at 344. Inventory was at 145 listings last month. Inventory is on par with the 152 listings in December 2020.

North Vancouver saw 92 apartment sales in January 2021 slightly lower than the 124 sales in December 2020. The benchmark price of an apartment property is $591,400, a 5.9 per cent increase from January 2020. This represents an increase of 1.5 per cent over the last 6 months and an increase of 3.9 per cent over the last 3 years, an increase of 47.4 per cent over the last 5 years and an increase of 76.1 per cent over the last 10 years.

Curious about buying  or selling a condo? Call us! Every situation is unique and we have all the information you need.

The condo market is a seller’s market with a sales ratio of 40 per cent and a build up of nearly 2.5 months worth of inventory. The average condo listing sat on the market for 34 days on par with last month. Condos are selling on average for 98.2 per cent of list price. 4 out of 10 sellers priced their condos correctly for the current market while 6 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 January 2021 totalled 36 (on par with December 2020). The benchmark price of a North Vancouver townhome property was $1,020,700 in January 2021 which represents an 7.6 per cent increase from January 2020. This represents an increase of 2.1 per cent over the last 6 months, an increase of 2.9 per cent over the last 3 years, an increase of 38.9 per cent over the last 5 years and an increase of 81.7 per cent over the last 10 years.

Curious about buying or selling a townhome? Call us! Townhomes are in demand and inventory is low. Many buyers are looking for space but cannot afford a detached home. This is the time to sell and maximize your return. 

The attached market is in a seller’s market position with a sales ratio of 54 per cent and a build up of nearly 2 months worth of inventory. The average attached listing sat on the market in December for 33 days which is slightly higher than the 24 days it took in December 2020. Attached properties are selling for just over 99 per cent of list price. Nearly 6 townhome sellers out of 10 priced their homes appropriately for the market while 4 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 and provide the information you need to make an informed decision.

Data courtesy of the BCREA, REALTOR® Report, REBGV and SnapStats®