March Market Update

“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.

From Craig Munn, 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”.

“A recovery of home sales is underway around the province, and without addressing significant supply issues, any progress made toward improved affordability looks to be short-lived”, Brendon Ogmundson, Chief Economist, BCREA.

As concerns about COVID-19 ripple through economic chatter, the Bank of Canada jumped in this week and dropped “its key interest rate 50 bps”. “As the country braces for economic impact, the Bank of Canada is attempting to curb anxiety and ease the concern of a possible recession”. This could be a win for buyers as long as banks opt to pass the savings on. Please read the rest of the REW.ca article here for the concerned implications of COVID-19 on the real estate market.

We have seen many multiple offer situations in the entry level detached market. This includes homes priced between $1,100,000 and $1,500,000. We were surprised by two other homes above the $1,500,000 threshold that sold above asking in Princess Park. Inventory levels are low as we head into March Break. We are anticipating a robust Spring Market.

North Vancouver detached market was a seller’s market in February. On average, most homes are selling for 97% per cent of list price. Sellers in Central Lonsdale and Lynn Valley did well last month while buyers found good opportunities between $3,000,000 and $3,500,000 and in Edgemont. On average, it took 23 days to sell a home in February that was much faster than the 65 days it took in January. The sweet spot for sales was between $1,500,000 and $1,750,000 with good activity between $1,250,000 to $1,750,000 and $2,000,000 to $2,250,000.

The REBGV stated that, “The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,020,600. This represents a 0.3 per cent increase over February 2019 and a 2.7 per cent increase over the past six months.”

Inventory in February was low and we saw buyers out in force at opens and the offer table. The low supply levels coupled with increased demand has cause entry level homes to sell $50,000 to $150,000 over asking. We could see this continue and create a domino effect into the Spring Market if there is not enough inventory to satisfy buyers.

With the Bank of Canada drop and the impending mortgage stress test changes, it’s a good time to acquire a lower mortgage rate. With affordable and easy money, it is a great time to sell and buy. We may see lack of supply drive home prices up in some areas.  Call us, if you are curious or have any questions. We are always happy to help! 604.561.9802.

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 and phone calls so far this month.

Now, lets get to the numbers…

The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,060,300. This represents an increase of 2.3 per cent from the MLS® HPI over the last year and up 7.6 per cent over the last 3 years, up 48.3 per cent over the last 5 years and up 69.6 per cent over the last 10 years. The numbers indicate that prices are possibly improving. We need a few months more of consistent data to prove prices are improving.

There were 71 detached sales in February 2020, higher than the 24 detached sales recorded in January 2020 and 13 sales in February 2019. The benchmark price for detached properties was $1,546,400. This represents an increase of 3 per cent over the last year and a decline of 1.9 per cent over the last 3 years, an increase of 42.1 per cent over the last 5 years and an increase of 74.2 per cent over the last 10 years that was consistent with last month. The gains are slightly up since last month and the decline is slightly down.

The detached market is a seller’s market with a sales ratio of 27 per cent and a build up of over 3.5 months worth of inventory. This tells us that nearly 3 out of 10 homes were priced properly while 7 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 23. Homes are selling on average for 97.2 per cent of list price. The detached inventory peaked in May 2019 at 475 and has been declining since. Inventory was at 264 listings last month. In keeping with what we normally see at Spring Break, we expect inventory to pick up after the school holiday and pick up again after Easter Weekend.

North Vancouver saw 98 apartment sales in February 2020 that is up from 37 sales in February 2019. The benchmark price of an apartment property is $572,000, a 2.3 per cent increase from February 2019. This represents an increase of 2.9 per cent over the last 6 months and an increase of 20.9 per cent over the last 3 years, an increase of 57.7 per cent over the last 5 years and an increase of 64.8 per cent over the last 10 years.

The condo market is a sellers market with a sales ratio of 37.5 per cent and a build up of over 2.5 months worth of inventory. The average condo listing sat on the market for 25 days consistent with February 2019 and January 2020. Condos are selling on average for 98 per cent of list price. Nearly 4 out of 10 sellers priced their condos correctly while 6 out of 10 sellers did not.

Attached property sales in February 2020 totalled 26, on par with the 24 sales in February 2019. The benchmark price of a North Vancouver townhome property is $951,100, which represents an 0.6 per cent decrease from February 2019. This represents an idecrease of 0.9 per cent over the last 6 months, an increase of 8.9 per cent over the last 3 years, an increase of 59.5 per cent over the last 5 years and an increase of 65.2 per cent over the last 10 years.

The attached market is in a seller’s market position with a sales ratio of 37 per cent and a build up of over 2.5 months worth of inventory. The average attached listing sat on the market for 18 days consistent with February 2019 and January 2020. Attached properties are selling for 98.9 per cent of list and nearly 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 Realtor Report®, REBGV, BCREA and SnapStats®