The old saying that ‘April showers bring May flowers’ couldn’t be more true! As we approach one of the most beautiful seasons on the North Shore, it’s the perfect time to list and/or start looking for a new home.
“Until more entry level, or ‘missing middle’, homes are available for sale in our market, we’ll likely continue to see prices increase,” Jill Oudil, Real Estate Board of Greater Vancouver (REBGV) president said. “There’s been record building this past year, but much of that inventory isn’t ready to hit the market.”
The sales-to-active listings ratio now stands at 39.9 per cent – up from it’s low point of 13 per cent in January 2017 but down a bit year over year from 45 per cent in April 2016. We are in a seller’s market and expect to see this trend continue into May.
The detached composite benchmark price was $1,599,300 in April – slightly up from the previous month, and 7.5 per cent higher than April 2016, according to the board.
“Our overall market is operating below the record-setting pace from a year ago and is in line with historical spring levels. It’s a different story in our condominium and townhome markets,” Oudil said. “Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm.”
Sales and Listings
North Vancouver detached home sales in April were slightly higher than in March 2017. Sales totaled 110 units, which was a drop of 30.8 per cent compared with the 159 sales recorded in April 2016, and up slightly from the 98 sales in March.
April saw 276 listings hit the market compared with 211 in April of 2016 but on par with the 271 listings we saw in March 2017. We are still sitting at low inventory levels. This is resulting in multiple offers as demand is outpacing supply.
It is taking an average of 30 days to sell a detached home compared to the very brisk time frame of about 2 weeks this time last year.
Sales are increasing, inventory is down, interest rates are low so we expect home prices to continue to track upwards into May. The market got off to a late start this year. It will be interesting to see if things wind down in June. We may see a prolonged spring market given the number of sellers who have sold and are now shopping for a home. We are seeing extended and/or flexible completions. The norm is about 60-90 days but we are now seeing 90+ days or flexible time windows of a month or more.
Many buyers are finding comfort in using home equity to acquire their next home before selling their current home, especially down-sizers. We are also seeing buyers who wish to cash in on their real estate investment or pay off their mortgage by purchasing a smaller home or moving to a different neighbourhood.
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Home prices can vary widely throughout North Vancouver. To get a good idea of home prices in a specific neighbourhood, get in touch. We are available and happy to help.