September Market Update

“People who put their home buying and selling plans on hold in the spring have been returning to the market throughout the summer,” Colette Gerber, REBGV Chair said. “Like everything else in our lives these days, the uncertainty COVID-19 presents makes it challenging to predict what will happen this fall.”

“Low interest rates and limited overall supply of homes for sale are creating competition in today’s housing market,” Gerber said. “Your local REALTOR® can help you navigate today’s market and ensure that the latest public health requirements are followed at every step of the process. Above all, safety has to remain our top priority during this pandemic.”

Sales were down in August compared to July, the average composite price was up. Buyers and sellers are comfortable with the new home buying and selling processes. The long weekend has historically meant for a delay to the second or third week of September for the real estate market. We do not see the market slowing down for fall.

Given Dr. Bonnie Henry’s advice to begin shrinking our bubbles again, 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.

Inventory is extremely low. Buyers are shopping. We continue to see multiple offers and quick sales (7-10 days).  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.

“The outlook for the BC housing market is much brighter following a surprisingly strong recovery,” said Brendon Ogmundson, BCREA Chief Economist. “We expect home sales will sustain this momentum into 2021, aided by record-low mortgage rates and a recovering economy.”

Shaun Cathcart, CREA’s Senior Economist, says that many would-be buyers and sellers are holding back, but added that the enforced period of being at home has prompted action for others.
“Some purchases will no doubt be delayed, but the new-found importance of home, lack of a daily commute for many, a desire for more outdoor and personal space, room for a home office, etc. will certainly also spur activity that otherwise would not have happened in a non-COVID-19 world,” he said.
We are seeing buyers that want more office space, interior space and better outdoor spaces. This is prompting upsizing moves. Of note, we have seen many buyers request space for Recreational Vehicles and making vacation property purchases.
If you are thinking of making a vacation home purchase or upsizing or cannot decide which one to do, please call us. There are a few financial considerations when purchasing a vacation home that don’t necessarily apply when you upsize your primary residence. We know some great realtors who specialize in vacation and resort areas. We would love to get you in touch with them.

If you 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. 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 home. It has been our absolute pleasure to watch your families grow and friends thrive in changing circumstances.

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…

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”.

The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,098,600. This represents an increase of 7 per cent from the MLS® HPI over the last year and no change in the last 3 years, up 43 per cent over the last 5 years and up 77.2 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 steady last month by 0.8 per cent. The index increased over the last 6 months by 3.6 per cent. This is good news!

There were 103 detached sales in August 2020, on keel with the 101 detached sales recorded in July 2020 up 61 per cent from the 64 sales in August 2019.

The benchmark price for detached properties was $1,614,900 in August. On par with $1,601,000 in July 2020 and up 9.5 per cent from August 2019.  This represents an increase of 4.4 per cent over the last 6 months and a decline of 5.2 per cent over the last 3 years (peak of the market), an increase of 33.1 per cent over the last 5 years and an increase of 83.3 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 33 per cent and a build up of about 3 months worth of inventory. This tells us that just over 3 out of 10 homes were priced properly yet 7 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 24 days. Homes are selling on average for nearly 97 per cent of list price.

The detached inventory peaked in May 2019 at 475. For 2020, detached inventory peaked in June at 344. Inventory was at 315 listings last month.

The pandemic is not deterring sellers or buyers from making a move. We are seeing homes listed and sold. Consumers are comfortable with the process of buying and selling and are proceeding with their plans.

North Vancouver saw 92 apartment sales in August 2020 down slightly from the 119 in July 2020. The benchmark price of an apartment property is $583,600, a 5 per cent increase from August 2019. This represents an increase of 1.7 per cent over the last 6 months and an increase of 5 per cent over the last 3 years, an increase of 57.8 per cent over the last 5 years and an increase of 71.2 per cent over the last 10 years. We are encouraged to see the 5 and 10 year figures increasing over last month.

The condo market is a balanced market (bordering on a seller’s market) with a sales ratio of 20 per cent and a build up of nearly 5 months worth of inventory. The average condo listing sat on the market for 28 days. Condos are selling on average for 97.3 per cent of list price. About 2 out of 10 sellers priced their condos correctly while 8 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 so we can maximize your sale proceeds.

Attached property sales in August 2020 totalled 45. The benchmark price of a North Vancouver townhome property is $1,014,900 which represents an 5.7 per cent increase from August 2019. This represents an increase of 7.1 per cent over the last 6 months, an increase of 4.8 per cent over the last 3 years, an increase of 51.8 per cent over the last 5 years and an increase of 74 per cent over the last 10 years. These numbers have increased for the short term, 5 year and 10 year figures which is great news for townhome owners. Townhomes are in demand and inventory is in short supply. If you are thinking about selling your townhome, call us. Many buyers are looking for space but cannot afford a home. This is the time to sell!

The attached market is in a seller’s market position with a sales ratio of nearly 40 per cent and a build up of 2.5 months worth of inventory. The average attached listing sat on the market in August for 21 days which is slightly slower than July (14 days). Attached properties are selling for just over 98.7 per cent of list price and nearly 4 townhome sellers out of 10 priced their homes appropriately for the market while 6 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®