July Market Update

“REALTORS® continue to optimize new technology tools and practices to help their clients meet their housing needs in a safe and responsible way,” Colette Gerber, REBGV Chair said

“Over the last three months, home buyers and sellers have become more comfortable operating within the physical distancing and other safety protocols in place.”

“Much more of the real estate transaction is happening virtually today. Before considering an in-person showing, REALTORS® are helping potential buyers pre-screen homes more thoroughly by taking video tours, reviewing floorplans and an increased number of high-resolution images, as well as often driving through the neighborhood.”

According to REBGV, “The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,025,300. This represents a 3.5 per cent increase over June 2019 and a 0.3 per cent decrease compared to May 2020.”

“Home prices have remained steady with minimal fluctuation over the last few months,” Gerber said. “With increasing demand, REALTORS® have begun seeing multiple offers for homes priced competitively for today’s market.” Check out our blog post about pricing as a marketing strategy to learn more about the impact listing price has on the interest your home garners and activity your home receives.

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 June compared to May, prices have remained stable. Buyers and sellers are comfortable with the new home buying and selling processes. We believe the pent-up demand and historically low interest rates will augment the market recovery as long as the government financial piece is able to keep households afloat.

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.”

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.

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 $1,073,200. This represents an increase of 3.6 per cent from the MLS® HPI over the last year and up 0.2 per cent over the last 3 years, up 39.8 per cent over the last 5 years and up 69.6 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 held steady last month with a minimal increase of 0.5%. The index increased over the last 6 months by 4.3 per cent. This is good news!

There were 84 detached sales in June 2020, higher than the 51 detached sales recorded in May 2020 and on par with the 82 sales in June 2019. Historically, May is the busiest month in the real estate market but it was eclipsed by sales in June. COVID-19 has prolonged the market into the summer months. The month lag we predicted COVID-19 caused has been realized. We will have to wait and see what impact COVID-19 has on the summer market going forward.

The benchmark price for detached properties was $1,563,500 in June. Slightly up but consistent with May 2020 benchmark price of $1,543,800.  This represents an increase of 2.5 per cent over the last year and a decline of 7.5 per cent over the last 3 years (peak of the market), an increase of 31.2 per cent over the last 5 years and an increase of 74 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 25 per cent and a build up of about 2.25 months worth of inventory. This tells us that just over 2 out of 10 homes were priced properly about 8 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 27 days. Homes are selling on average for 97.5 per cent of list price. The detached inventory peaked in May 2019 at 475 and has been declining since. Inventory was at 188 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. We sense there is some fear that there will be a second wave of COVID-19 in the fall. This is causing sellers and buyers to move quickly now with their real estate plans rather than wait and see what happens in the fall.

North Vancouver saw 110 apartment sales in June 2020 a sharp increase t0 the 55 sales in May 2020. The benchmark price of an apartment property is $575,000 (consistent with May 2020), a 4.1 per cent increase from June 2019. This represents an increase of 4.1 per cent over the last 6 months and an increase of 8.7 per cent over the last 3 years, an increase of 51.5 per cent over the last 5 years and an increase of 64.4 per cent over the last 10 years.

The condo market is a sellers market with a sales ratio of 31 per cent and a build up of nearly 2.25 months worth of inventory. The average condo listing sat on the market for 27 days. Condos are selling on average for 97.8 per cent of list price. About 2 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 June 2020 totalled 39. The benchmark price of a North Vancouver townhome property is $989,000, which represents an 4.5 per cent increase from June 2019. This represents an increase of 6.9 per cent over the last 6 months, an increase of 5.4 per cent over the last 3 years, an increase of 49.6 per cent over the last 5 years and an increase of 68.8 per cent over the last 10 years. 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 37 per cent and a build up of 2 months worth of inventory. The average attached listing sat on the market in June for 17 days faster than May 2020 (23 days) and April 2020 (25 days). Attached properties are selling for just over 98.5 per cent of list price and about 4 townhome sellers out of 10 priced their homes appropriately for the market while 6 did not.

Looking for more info? Call us, we are always happy to help.

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