Home sale and new listing activity reached record levels in Metro Vancouver in September.
“We’ve seen robust home sale and listing activity across Metro Vancouver throughout the summer months,” Colette Gerber, REBGV Chair said. “This increased activity can be attributed, in part, to lower interest rates and changing housing needs during the COVID-19 pandemic.”
“While the pace of new MLS® listings entering the market is increasing, the heightened demand from home buyers is keeping overall supply levels down,” Gerber said. “This is creating upward pressure on home prices, which have been edging up since the spring.”
Are we cresting on a precipice?
We are hearing all sorts of predictions and explanations for the real estate market. Some think quality listings are coming in October and that the listings we saw in the Spring and Summer were not the quality listings that buyer’s were looking for. Yet, buyers bought due to low interest rates and demand. Has the first wave of pent up demand died out? Are the second wave of buyers just not as desperate to get into a competitive offer situation?
On the ground last month, we saw multiple offers fizzle out suddenly and then pick up again for some properties. Homes that are not priced competitively for the current market are adjusting their prices downward and/or sitting on the market past the average days on market.
We are still seeing priced out of the market East Vancouverites shopping in the more affordable North Vancouver market. From our Vancouver colleagues, we are hearing that buyers are fatigued. No longer willing to compete, buyers are waiting till offer day passes or ensuring there are limited offers before they put in an offer. Typically, the North Vancouver market feels a ripple to the effects of the Vancouver market.
Thinking of home shopping or renewing a mortgage?
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. 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!
Sales were up nearly 94 per cent in September compared to September 2019. Sales are on par with the peak of the market in May 2017. The average North Vancouver composite price was up. We expect a delay in listings entering the market till after long weekend. We do not see the market slowing down for fall.
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.
What are buyers shopping for? In a nutshell, space!
On September 4, Robert Hogue, RBC Senior Economist, released a commentary about the August 2020 housing market, noting that buyers nationwide are “demonstrating a stronger preference for single-detached homes”. Moreover, the “growing penchant for single-detached homes is supporting stronger price increases in that category”.
In his latest report on September 30, Hogue wrote that the “impact of COVID-19 on the housing market is complex”. According to Hogue, it will “lead to diverging price trends among regions and housing categories”. “It is cooling demand for and boosting supply of rentals in large urban areas,” the economist explained. “This, in turn, is reducing investor interest in condos.”
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?
Many of you know, I love to nerd out with a cup of tea on the stats. Here’s what happened in September…
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 $1,109,300. This represents an increase of 9.5 per cent from the MLS® HPI over the last year and 1.1 per cent increase in the last 3 years, up 41.5 per cent over the last 5 years and up 78.5 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 increased slightly last month by 1 per cent. The index increased over the last 6 months by 3.3 per cent. Good news for homeowners!
Seller, sellers, come out, come out, wherever you are…buyers want to play!
There were 133 detached sales in September 2020, up 29 per cent from the 103 detached sales recorded in August 2020 up 125 per cent from the 59 sales in September 2019.
The benchmark price for detached properties was $1,647,300 in September. Up 2 per cent from August 2020 and up 12.6 per cent from September 2019. This represents an increase of 6.2 per cent over the last 6 months and a decline of 2.8 per cent over the last 3 years (peak of the market but this number is shrinking), an increase of 33 per cent over the last 5 years and an increase of 85.8 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.
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 44.9 per cent and a build up of just over 2 months worth of inventory. This tells us that just over 2 out of 10 homes were priced properly yet 8 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 99.1 per cent of list price, an increase of 2.9 per cent from last month.
The detached inventory peaked in peaked in June at 344. Inventory was at 296 listings 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 (except for the odd surprise) and to show up with a mask, gloves and hand sanitizer.
North Vancouver saw 140 apartment sales in September 2020 up 68.7 per cent from the 92 in August 2020. The benchmark price of an apartment property is $586,300, a 7.3 per cent increase from September 2019. This represents an increase of 0.3 per cent over the last 6 months and an increase of 5 per cent over the last 3 years, an increase of 55.1 per cent over the last 5 years and an increase of 70.8 per cent over the last 10 years. The 5 and 10 year figures have decreased slightly since last month.
The condo market is a balanced market (bordering on a seller’s market) with a sales ratio of 30 per cent and a build up of just over 3 months worth of inventory. The average condo listing sat on the market for 20 days. Condos are selling on average for 97.9 per cent of list price. About 3 out of 10 sellers priced their condos correctly while 7 out of 10 sellers did not. Sharply priced condos have been selling in multiple offers without subjects. 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 September 2020 totalled 42, on par with August 2020 and up significantly from the 21 sales in September 2019. The benchmark price of a North Vancouver townhome property is $1,009,100 which represents an 7.7 per cent increase from September 2019. This represents an increase of 4.7 per cent over the last 6 months, an increase of 4.6 per cent over the last 3 years, an increase of 47.3 per cent over the last 5 years and an increase of 77.6 per cent over the last 10 years. Townhomes are in demand and inventory is in short supply. 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 34.7 per cent and a build up of nearly 3 months worth of inventory. The average attached listing sat on the market in September for 24 days which is on par with August 2020 (20 days). Attached properties are selling for just over 98.7 per cent of list price and just over 3 townhome sellers out of 10 priced their homes appropriately for the market while nearly 7 did not. We are seeing multiple offers for townhomes, sale prices over asking and quick sales. 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®