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 has been a focus for residents during the pandemic. With more days and evenings spent at home this year, people are re-thinking their housing situation,” Colette Gerber, REBGV Chair said. “Throughout this period, REALTORS® have been working to understand and adapt to the latest safety protocols so that they can continue to help the public meet their housing needs in a safe and responsible way.”
“With demand on the rise, homes priced right for today’s market are receiving attention and, at times, garnering multiple offers,” Gerber said. “To understand the market conditions in your neighbourhood and property type of choice, work with your local REALTOR® to assess the latest MLS® housing market information.”
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 seeing multiple offers again. Check out last week’s blog on Competing in a Competitive Market to see what you can do to get the home of your dreams. We have a few other ways to make your offer the best received in competition. Call us, we can help!
The multiple offers are no longer limited to specific North Shore areas. Multiple offers can be 2 or 14 as we saw last week. Condos have slowed down a bit but we are seeing a few properties secure offers within days of listing and in our case at list price. Buyers are price sensitive. To achieve the most on your sale, it is important to use pricing as a strategy for a quick sale. Leaving your home on the market for longer than necessary means less money for you.
Thinking of Selling?
Buyer demand still exceeds current inventory levels. We are seeing many buyers going into interim rentals. 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. Call us, this is your time to capitalize!
What’s happening with mortgages?
At our weekly office meeting, we learned that some homes are not appraising out at the value offered. This happens when we are in a rapidly ascending market. The prices are going up faster than the appraisers can adjust for market changes.
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 expect inventory to slow down leading up to December holidays. This will create even more pent up demand now and for the winter market. We believe the condo market is going to slow down due to the desire for more space and proximity to work no longer being a necessity for many.
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.
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 may have been a record, thank you!
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.
What about the numbers?
Today is the perfect rainy day to curl up on the couch with the stats. When working from home includes a toasty fire and tea, I am in! Here’s what happened in October…
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 $1,117,700. This represents an increase of 9.6 per cent from the MLS® HPI over the last year and 1.6 per cent increase in the last 3 years, up 40.6 per cent over the last 5 years and up 81 per cent over the last 10 years. The 10 year increase is up from last month. Prices are stable-the index increased slightly last month by 0.8 per cent. The index increased over the last 6 months by 4.7 per cent up from last month.
Sellers, we need you. Buyer demand is intense.
There were 128 detached sales in October 2020, on par with 133 detached sales recorded in September 2020 up from the 89 sales in October 2019.
The benchmark price for detached properties was $1,665,100 in October. Up 1.1 per cent from August 2020 and up 13.6 per cent from October 2019. This represents an increase of 7.8 per cent over the last 6 months and a decline of 1.8 per cent over the last 3 years (peak of the market but this number is shrinking), an increase of 32.5 per cent over the last 5 years and an increase of 90.1 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 48 per cent and a build up of just over 2 months worth of inventory. This tells us that nearly 5 out of 10 homes were priced properly yet 5 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 20 days. Homes are selling on average for nearly 98.3 per cent of list price, a decrease of 0.8 per cent from last month.
The detached inventory peaked in June at 344. Inventory was at 269 listings last month. Inventory is down 12.7 per cent from last month.
The pandemic is not deterring sellers or buyers from making a move. We are seeing homes listed and sold. Consumers feel safe with the process of buying and selling and are proceeding with their plans. Everyone knows to book an appointment and to show up with a mask, gloves and hand sanitizer.
North Vancouver saw 142 apartment sales in October 2020 on par with the 140 in September 2020. The benchmark price of an apartment property is $588,900, a 6.3 per cent increase from October 2019. This represents an increase of 2.5 per cent over the last 6 months and an increase of 5.1 per cent over the last 3 years, an increase of 53.9 per cent over the last 5 years and an increase of 71.4 per cent over the last 10 years. The 5 and 10 year figures have increased slightly since last month.
The condo market is a balanced market (bordering on a seller’s market) with a sales ratio of 33 per cent and a build up of nearly 3 months worth of inventory. The average condo listing sat on the market for 27 days. Condos are selling on average for 97.1 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. We are seeing lots of first time buyers getting into the market which is great!
Attached property sales in October 2020 totalled 57. The benchmark price of a North Vancouver townhome property is $1,026,400 which represents an 9.6 per cent increase from October 2019. This represents an increase of 4.4 per cent over the last 6 months, an increase of 5.1 per cent over the last 3 years, an increase of 48 per cent over the last 5 years and an increase of 80.9 per cent over the last 10 years. The increases are up from last month. 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 59 per cent and a build up of over 1.5 months worth of inventory. The average attached listing sat on the market in October for 22 days which is on par with September 2020 (24 days). Attached properties are selling for just over 98.8 per cent of list price and 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.
Data courtesy of the BCREA, REALTOR® Report, REBGV and SnapStats®