1) Less competition: Lower inventory could result in a better selling experience due to lack of available listings to existing buyers.
2) Test the market: If you don’t see a great offer early, spring and summer markets are typically strong and right around the corner.
3) Put yourself in a buying position: Selling early in the year puts you in a stronger buying position in the spring/summer when there is a better selection of listings. This would reduce your financial risk and put you in a more favourable offer position.
Why Buy in March?
1) Less buyers: snow and rain keeps buyers indoors, which could help you get a better deal on the home you love.
2) Potential deals: Winter weather, less buyers, lingering inventory from the fall can lead to buying opportunities.
3) Seasonality: Every year is different, but in a typical year winter is slower than spring and summer. Take advantage of the slow season before more buyers show up.
Last year we helped over 100 families move on to the next chapter of their lives, and we hope to help more this year! If you’re thinking of buying or selling, or just curious about what your home is worth, give us a call!
2019 was a very interesting (and abnormal) year in Greater Vancouver real estate. Typically we see the strongest market activity in the spring, but in 2019 we were off to a slow start, and the sales activity improved as the year went on. In March the headlines read ‘Vancouver home sales hit 33 year low!’, and by December home sales were up 88% compared to December 2018, and 9.5% above the 10 year December average. Buyer confidence was the main factor. In the first quarter, many prospective buyers were holding off and waiting to see if prices would continue to fall due to changes in the mortgage stress test and new taxes. However, confidence started to return in the summer, and we saw above average sales in the fall 2019.
It feels like the market bottom is behind us and we’re no longer seeing downward pressure on prices. For all property types, the sales-to-active listings ratio for December 2019 is 23.4 per cent. By property type, the ratio is 15.2% for detached homes, 25.7% for townhomes, and 32.5% for apartments. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20%.
Averages tell a general market story, but there are many markets within Greater Vancouver. We’re seeing differences amongst cities, product types and price points. Luxury real estate continues to struggle and experience a buyers market, whereas entry level condos are experiencing bidding wars and seller’s market conditions. Based on these recent trends, we expect the stronger sales in the lower price points to trickle up to higher price points over the coming months. Since the financial markets are up, mortgage rates are low and buyer confidence is back, our expectation is that market activity will continue to strength over the coming months. Expect more bidding wars for entry price point houses, condos and townhouses. As for the luxury market, expect sales to increase, but it will likely take a few years for it to catch up to 2016/2017 pre-foreign tax levels.
Surprise surprise… It’s slow. In terms of units sold, statistically the month of March was the slowest it’s been in 33 years! However, don’t let the media headlines fool you, it’s not that bad for all property types. It may be a ‘Buyers Market’, particularly for luxury homes, fixer uppers and land value, but many entry level homes, condos and desirable areas are experiencing more of a ‘Balanced Market’, we have even experienced a few bidding wars. Check out this video to learn more about our thoughts on the 2019 Spring Market.
Vancouver, BC is one of the most beautiful places to live in Canada, but it comes at a high price. The average price for Vancouver Real Estate in 2019 is $1,019,600, which is 4.5% lower compared to 2018.
It is expensive to own a home in Vancouver, but it is also expensive to rent. The average 1 bedroom apartment price increased by 6.5% from 2018, which is the second highest rental price in Canada, right below Toronto. Burnaby ‘s 1 bedroom rentals increased by 9.8%, which is the third highest in Canada.
MARKET UPDATE BY NEW WESTMINSTER REALTOR JAMES GARBUTT
May is here and it’s time for another New Westminster housing market update.
It’s been a bit of a crazy year, it started off with a lot of snow, followed by a lot of rain, which delayed everything and affected the number of sales that have taken place. In fact, numbers are down considerably. The number of sales of detached homes in New Westminster to date is 62. At this time last year, that number was 186–that’s essentially a third of the number of sales compared to last year and about half the number of sales compared to 2015. Not surprising considering the weather and considering everything that’s happened lately, and, openly, there just hasn’t been a lot of product and a lot of overpriced listings have been sitting on the market.
The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. The sales ratio for detached homes in New Westminster is 30% across the board. That means, that of ten listings, 3 of them sell in a given month. Anything north of 21% is considered a seller’s market, so the market still is strong. Isolating the ratio to focus mainly on a lower price point, say detached homes under $1.2 million, the sales ratio goes from 30% to 70%. That means the out of 10 listings, 7 of them are selling in a given month, and that is a very strong seller’s market. So there’s clear demand for the more affordable price points.
The average detached home sold this year is going for $1.125 million and the average high sales of the year is $2.3 million; but there were two sales north of $2.2 million, both in ‘Queens Park‘.
The REBGV has shown that prices for detached homes in New Westminster have gone up 8% from this time last year; but we’re finding that, for nice family layouts, in a good location, in good shape, in the more affordable price bracket, they’re up about 10%. The busy street homes, the ones that have the land value, are struggling a bit; they’re at par with April of last year or maybe even a little bit below.
Moving forward, I expect the market activity to increase quite a bit; I think sales are just starting to ramp up and that the summer is going to be a busy one. Talk about things such as coach homes for lots over 6000sqft has held back a lot of the inventory as owners wait to see what happens. But, the weather is getting better and the supply is low and the demand is high, so if you are a homeowner and you’re thinking of selling, now is the time to do so.
It’s been a bit of a crazy year; we’ve had some insane weather and condos have been smoking hot. That’s your update—they’re hot!
Overall, the sales for the year are down a little bit from last year, but not significantly. We’ve had 357 sales to date, compared to the same period last year which was 418, and in 330 in 2015.
So even though there’ s been a little bit of a decrease, we’re up from 2015. The sales ratio for these condos, however, is up considerably. The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher. Across the board, the New Westminster condo sales ratio is 76%–a smoking hot seller’s market. That means that out of 10 active listings, 7.6 of them will sell in a given month.
If we isolate the sales ratio to the hottest product right now–entry level one bedroom condos built after 2000–the sales ratio is 183%! Which is ridiculous. It basically means that is you have a newer one bedroom condo to sell, it will sell immediately. And we’ve been experiencing that. Keep in mind that that’s 183% sales ratio when a seller’s market is considered anything north of 21%.
What are prices doing? Well, prices are up. The REBGV says that prices are up 20% compared to this time last year. We’ve had cases where the prices have been up 30%+. We recently listed four New Westminster condos that received 20 offers combined averaging $43,000 above their list prices. So, if you’re a condo owner and you’re looking to sell, it’s a great time to do so; but figure out where you’re going, because if you’re buying another condo, it may be frustrating.
Essentially, everything in the strata seems to be quite active right now in New Westminster. The market is as good and as strong as we’ve ever seen.
On the buy side, expect frustration, expect competing offers and expect to pay more than the last sale. Things may slow down in the fall, but there’s nothing telling us that right now. At the moment, it is a seller’s market and New Westminster condos are hot.
It’s been a bit of a crazy year, and between the snow and the rain, the weather has been awful and it’s held back the sales a little bit; the number of sales are down considerably compared to 2016. As of April 26, 2017, in Vancouver the number of sales of detached home is 701. Now compared to the same period of time last year, it was 1473–just under half the number of sales.
In Burnaby, we see the biggest effect: 267 compared to 1400 last year. In the Tri-Cities, 469 compared to 1098 sales. Overall, the trend is that the number of sales is down considerably and, in most cases, less than half of what they were last year. Mind you, last year was insane and this year we’ve seen some legitimately awful weather.
In terms of prices, let’s look at the sales ratio. To get a good indication of how the market doing, we like to look at the sales ratio. The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher.
In the last 60 days, the sales ratio for detached homes in Vancouver is 15%; that means that of 10 active listings, 1.5 of them are selling in a given month. That’s a low figure, but when you isolate listings at $1.5 million or less, that figure goes from 15% to 38%–a strong seller’s market. When you isolate that figure from $3 million plus it goes from 15% to 9%. So the high end is really what’s dragging down the sales ratio.
And similar stats are in Burnaby, where the sales ratio is 21%, but under $1.5 million, it’s 53%, and at $2 million, it’s 9%. So the high end market is what’s struggling right now, but the entry points are quite active—they’re hot.
Some fun sales of the year:
The highest sale to date was on Point Grey Road and it sold for $17.6 million, this is from the REBGV stats. In the Tri-Cities, the highest sale was $3.4 and it was ‘Anmore‘, which is, in my opinion, one of Vancouver’s best kept secrets.
In conclusion, the weather has held the market back. I expect these sales numbers to improve in the coming months, more so in the seller’s favour. The weather’s going to get better, a lot of homes will be coming on the market and I think it’s going to be a very active time. However, a lot of people are overpricing their homes–$2.5 million homes are being priced at $3 million, or $2 million dollar homes at $2.5 million, and that is proving not to work right now. You could get away with it last year, because the market would climb until it reached that point, but this year, it’s not. We’re seeing price points similar to last year in most areas and we’re seeing prices 20% above last year’s prices. So, there’s a big gap between list price and sale price and that’s holding back the sales ratios in a lot of these places.
If you’d like my opinion, if you’re selling a higher end product:
1. Don’t list it if you’re not serious about selling.
2. Price it properly.
On the buy side, I think it’s a great time to buy higher end product, but I just don’t think the seller’s are willing to come down to your price points yet. On the sell side, now is the sweet spot to sell detached homes. May, June, July, are active months, so take advantage.
MARKET UPDATE BY GREATER VANCOUVER REALTOR JAMES GARBUTT
May is here and it’s time for a Greater Vancouver condo market update. It’s been a bit of a crazy year, and, between the snow and the rain, the weather has been awful and it’s held back the sales a little bit, or at least that’s part of the reason for it.
As of April 26, 2017, the year-to-date number of sales are down from this time last year in the same period. If I were to put an approximate figure on it, I would say it’s down 30% in terms of number of sales. However, number of sales is just part of the equation for the market–prices are up considerably. Condos and townhouses are hot! They’re more affordable than detached homes, and, as a result, have a lot more buyers.
To get a good indication of how the market doing, we like to look at the sales ratio. The sales ratio is the sales-to-active listings ratio or the number of sales that take place in a given month divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher. That usually means that prices don’t back track. In Vancouver right now, we’re seeing a sales ratio of 60% over the last 60 days. In Burnaby, it’s 66%, in New Westminster it’s 76%, and in the Tri-Cities it’s 98%. These are strong seller’s markets.
If we isolate Vancouver condos north of $1.5 million, the sales ratio goes from 60% down to 22%, which is on the fringe of a seller’s market. At that figure, it’s definitely not a climbing market, but it’s definitely not back tracking either. So, sales volume may be down, but the prices are up. According to the latest stats from the REBGV, condo prices are up 16% across all of Greater Vancouver; however, in Burnaby, New Westminster and the Tri-Cities, we’re seeing a figure that seems to be more in line with 25%. And, particularly newer condos built after 2000 that are entry price points in the market, they’re smoking hot. The demand for affordable condos is high; the higher the price points, the lower the demand.
Let’s look at those percentages in a more practical way. Let’s look at a ‘Yaletown‘ 1 bedroom that’s 550 sf mid-level, say 10 years old as well. Those are selling for $1100 a foot this year; in 2016 for $950sf, and the year before it would be $775. Back to back years of 20+% appreciation–that is a hot market. It’s not sustainable, but it is smoking hot at the moment and I don’t expect it to slow down any time soon.
Some interesting stats for Greater Vancouver:
The highest sale as of April 26 2017 is $8.7 million. That was for a 3600sf condo in ‘Coal Harbour‘. That’s bigger than my house. In the Tri-Cities, a condo in Newport Village sold for $1.4 million for 1800sf overlooking the water.
Moving forward, I expect more of those to come; a lot of people that are downsizing are moving into these high end condos. So if you own a high end condo, now is a great time to consider listing. Basically, if you own any condo in Greater Vancouver, now is a great time to sell! The problem is, what are you going to buy? If you’re buying another condo, you may have some challenges.
May is here–and it’s time for a Burnaby detached house market update. It’s been a bit of a crazy year that started off with a lot of snow followed by record amounts of rain and we feel that this held back the number of sales compared to previous years.
As of April 26, 2017, the year-to-date number of detached houses sold in Burnaby was 276 units*, compared to 1400 units in 2016 and 558 units in 2015. That’s basically 1/5th of the sales volume in terms of units sold compared to this time last year. Not surprising, however, because the weather has been awful, and Burnaby houses have become very expensive! The average list price of a detached home in Burnaby at the moment is $2,212,700 (as of April 26, 2017), and the average sale price over the past 60 days has been $1,696,600.
To get a good indication of how the market is doing, we look at the sales ratio. The sales ratio is the sales-to-active listings ratio, or the number of sales that take place in a given month, divided by the number of active listings. A seller’s market is considered to have a sales ratio of 21% or higher. Currently, Burnaby homes are on the fringe of a seller’s market. When looking at the last 60 days of activity, the sales ratio is 21% for all houses in Burnaby. However, if we isolate homes priced under $1,500,000, the sales ration climbs to 53%. If we isolate the $2 million plus price range in Burnaby, the sales ratio decreases to 9%. Basically meaning that 1 of out 10 listings in this price range are selling in a given month. As a Burnaby Realtor, what we’re seeing is that there are a lot of overpriced homes; there are a lot of higher end homes priced 10-20% above where they should be.
Moving forward, we expect to see the sales ratio increase in the seller’s favour. The market is starting to heat up and the weather is getting better. The high end market may still struggle, but we expect houses priced under $2 million in Burnaby to be in high demand over the coming months.
Some interesting stats for Burnaby:
There has been just 1 detached home sold in 2017 for under $1 million and it went for $998,800. It was a small older home on a very busy street (10th Ave). It’s official, the new entry price point to buy a detached house in Burnaby is $1 million. The high sale for 2017 is $3,180,000 and it was a newer home sold in ‘Upper Deer Lake‘.
*Note that this information was taken on April 26, 2017. They are likely firm sales that have not registered on the MLS. Actual 2017 figures may be slightly higher than noted above.