Greater Vancouver Market Update – August 2021

Steady Sales, Reduced Listings, Prices Hold.

The summer market has been steady, it is still a seller’s market, and townhouses remain to be the hottest property type.  In June, the sales volumes showed signs of easing compared to previous months, and it seemed that the market was slowing down.  However, July sales were still 13.3% above the 10 year average, and the supply of listings dwindled down.  In fact, the volume of new listings coming to the market have been below the 10 year average since March. On the other hand, the sales volume has been above the 10 year average for every month in 2021, with record sales being achieved in April and March.  

Here’s a look the monthly sales volume compared to the 10 year average:

  • July 13.3% above 
  • June 18.4% above 
  • April 56.2% above 
  • March 72.2% above 
  • Feb 42.8% above 10 
  • Jan 36.4% above 10 

Due to the lower supply of listings, above average sales volume, and low interest rates, we anticipate the Seller’s market to remain for the foreseeable future. 

What to expect this fall?

In September we anticipate more listings to hit the market, which will be followed by more sales due to the pent up demand. The market will remain in the Sellers’ favour, and upward pressure on prices will likely continue.  We need a flood of new listings or a rise in interest rates to shift this market anytime soon.  For many areas throughout the Lower Mainland, we expect more multiple offers situations this fall.

– James Garbutt 

Our Top Home Sales from Summer 2021

July & August – Condos, Houses & Townhouses Sold!

As summer is about to come to a wrap we wanted to highlight some of our top home sales in the Greater Vancouver area!

Best Wow Factor!

2401 258 Nelson’s Court – 2 Bed, 2 Bath, 1,075sf – List Price $899,000

This sub-penthouse at the Brewery District in New Westminster features two huge patios and panoramic views from every room!

Hottest House Sold!

314 Holmes Street – This beautiful 5 bedroom, 3 bathroom New Westminster home was listed at $1,199,000. 

After approximately 40 showings they received 9 offers and SOLD at over $246,000 over list price!

Hottest Condo Sold!

103 – 2001 Balsam St, Vancouver – 1 Bed, 1 Bath, 671sf – List Price $549,000 

This renovated condo in Kitsilano received multiple offers and sold for 108% of list price in just 1 week!

Hottest Townhouse Sold!

30 – 245 Francis Way, New Westminster – 3 Bed, 3 Bath, 1,720sf – List price $950,000

This Victoria Hill townhouse received multiple offers and sold for 105% of the list price in just 1 week!

Garbutt + Dumas July and August to date Sales:

205-2496 Wilson Avenue, Port Coquitlam – 2 Bed, 2 Bath, 811sf – $595,000

9-1141 Eagleridge Drive, Coquitlam – 3 Bed, 3 Bath, 1,357sf – $785,800*

601-1026 Queens Avenue, New Westminster – 2 Bed, 2 Bath, 938sf – $439,900*

103-2001 Balsam Street, Vancouver – 1 Bed, 1 Bath, 671sf – $549,000

245 Warrick Street, Coquitlam – 4 Bed, 3 Bath, 2,433sf – $1,199,000*

208-609 Cottonwood, Coquitlam –  2 Bed, 2 Bath, 878sf – $649,000*

158-13888 70 Avenue, Surrey – 2 Bed, 2 Bath, 1,616sf – $549,000

1101-1816 Haro Street, Vancouver – 1 Bed, 1 Bath, 692sf – $610,000*

2410-258 Nelsons Court, New Westminster – 2 Bed, 2 Bath, 1,075sf – $899,000

124 Seventh Street, New Westminster – 4 Bed, 2 Bath, 2,174sf – $1,499,000*

608-4165 Maywood Street, Burnaby – 2 Bed, 1 Bath, 928sf – $619,000*

301-3399 Noel Drive, Burnaby – 2 Bed, 2 Bath, 903sf – $725,000

415-500 Royal Avenue, New Westminster – 2 Bed, 2 Bath, 866sf – $628,000*

45554 Worthington Place, Chilliwack – 4 Bed, 3 Bath, 4,322sf – $1,019,900*

3320 Jervis Street, Port Coquitlam – 3 Bed, 2 Bath, 1,792sf – $959,800*

330 Carnegie Street, New Westminster – 3 Bed, 3 Bath, 3,096sf – $1,525,000*

*Represented the Buyer

Our Top Home Sales for June 2021

Every month we want to highlight some of the amazing properties we get to sell. Here are some of our top picks from June:

Hottest Property in June!

2-56 Richmond Street, New Westminster – This 3 Bedroom, 3 Bathroom, 1,606sf townhome was listed at $779,000.

This great townhome has not just one but two beautiful private outdoor spaces. In an adult only complex, this townhome went fast and sold at 109% of the list price!

Best Kitchen of June!

11255 Tully Crescent, Pitt Meadows – 4 Bedrooms, 3 Bathrooms at 2,698sf this home was listed at $1,399,000.

With a built-in espresso machine and wine fridge, this kitchen is what dreams are made of! This exquisitely renovated Pitt Meadows home sold in June for 105% list price. 

Best Backyard of June!

20845 94B Ave, Langley – This property was listed at $1,199,000 with 4 bedrooms, 3 bathrooms and 2,059sf.

This oasis of a backyard sells itself. It includes a covered gazebo, updated deck and patio, koi pond, and plenty of greenery. This Walnut Grove home sold at 107% of the list price in just one week. 

Garbutt + Dumas June Sales:

306-655 Goldstream Avenue, Victoria – 2 Bed, 2 Bath – $399,000*

216-4373 Halifax Street, Burnaby – 2 Bed, 1 Bath, 927sf – $525,000* 

113-440 E. 5th Avenue, Vancouver – 1 Bed, 1 Bath, 682sf – $549,000*

11941 Evans Street, Maple Ridge – 5 Bed, 3 Bath, 2,265sf – $1,088,000*

317-13911 70th Avenue, Surrey – 3 Bed, 2 Bath, 1,640sf – $550,000

203-1240 Quayside Drive, New Westminster – 1 Bed, 1 Bath, 926sf – $425,000*

804-12069 Harris Road, Pitt Meadows – 2 Bed, 2 Bath, 1,044sf – $648,000*

204-222 N. Templeton Drive, Vancouver – 1 Bed, 1 Bath, 669sf – $499,000

509-10 Renaissance Square – 1 Bed, 2 Bath, 686sf – $499,000*

411-1669 Grant Ave, Port Coquitlam – 1 Bed, 1 Bath, 780sf – $399,000*

502-114 W Keith Road, North Vancouver – 2 Bed, 2 Bath, 1,202sf – $799,000

2796 Daybreak Ave, Coquitlam – 6 Bed, 3 Bath, 2,862sf – $1,799,000

30-245 Francis Way, New Westminster – 3 Bed, 3 Bath, 1,720sf – $950,000

334 Oliver Street, New Westminster – 3 Bed, 1 Bath, 1,185sf – $1,398,000

*Represented the Buyer

Our Top Home Sales for the Month of May 2021

Every month we want to highlight some of the amazing properties we get to sell. Here are our award winners for the month of May:

Hottest Property of May!

314 Holmes Street – This beautiful 5 bedroom, 3 bathroom New Westminster home was listed at $1,199,000. 

314 Holmes St, New Westminster

After approximately 40 showings they received 9 offers and SOLD at over $246,000 over list price!

314 Holmes Street, New Westminster, 5 Bed, 3 Bath, 2,143sf – SOLD!

Best View Sold in May!

230 Salter Street is where this stunning 3 bedroom, 3 bathroom New Westminster townhome was listed for $899,000.

20-230 Salter Street, New Westminster

With gorgeous views of the river, an excellent layout with charming features, and an amazing rooftop patio this townhome sold at 99.6% of the listing price!

20-230 Salter Street, New Westminster – 3 Bed, 3 bath, 1,537sf – SOLD!

Best Backyard Sold in May!

Gorgeous backyard and 4 bedroom, 3 bathroom, 2799 sf of living space, in this charming family home. A covered patio, hot tub and water feature, who would not want to relax in this oasis?

1507 Dublin Street, New Westminster

Listed at $1,499,000 this home sold at $76,000 over list price!

Garbutt + Dumas May Sales:

210-9262 University Crescent, Burnaby – 2 Bed, 2 Bath, 724sf – SOLD! 

312-340 Ginger Drive, New Westminster – 1 Bed, 1 Bath, 773sf – SOLD!

1501-111 E 1st Ave, Vancouver – 1 Bed, 1 Bath, 611sf – SOLD!

403-2330 Wilson Ave, Port Coquitlam – 2 Bed, 2 Bath, 975sf – SOLD!

20-102 Fraser Street, Port Moody – 3 Bed, 2 Bath, 1,410sf – SOLD!

450 Kelly Street, New Westminster – 5 Bed, 2 Bath, 2,042 – SOLD!

2502-660 Nootka Way, Port Moody – 2 Bed, 2 Bath, 848sf – SOLD!

307-26 E Royal Ave, New Westminster – 2 Bed, 2 Bath, 1,060sf – SOLD!

310-3921 Carrigan Court, Burnaby – 2 Bed, 1 Bath, 920sf – SOLD!*

104-55 Eighth Ave, New Westminster -2 Bed, 2 Bath, 874sf – SOLD! *

3018 Maplebrook Place, Coquitlam – 2 Bed, 1 Bath, 1,250sf – SOLD!*

34-55 Hawthorn Drive, Port Moody – 3 Bed, 3 Bath, 1,511sf – SOLD!

8165 Forest Grove Drive, Burnaby – 3 Bed, 3 Bath, 1,987sf – SOLD!

71-3295 Sunnyside road, Port Moody – 3 Bed, 2 Bath, 1,516sf – SOLD!*

A210-8150 207 Street, Langley – 2 Bed, 2 Bad, 960sf – SOLD!

26-50 Panorama Place, Port Moody – 3 Bed, 3 Bath, 1,740sf – SOLD!

1019 Hamilton Street, New Westminster – 6 Bed, 4 Bath, 2,837sf – SOLD!*

3339 Windsor Street, Vancouver – 3 Bed, 3 Bath, 1,518sf – SOLD!

22620 125A Ave, Maple Ridge – 5 Bed, 3 Bath, 2,319sf – SOLD!

*Represented the Buyer

Pricing Strategies When Listing Your Home

A seller must consider various factors when selecting a listing price for their home. These factors can include market trends, time of year, inventory availability, uniqueness of the property, and the homeowner’s current financial situation.

James and Denny share their process and classification system for selecting a price point for their client’s homes.

This episode will focus on understanding what potential buyers are looking for, the dangers of pricing your listing too low or too high, the value of a great location, and the difference between pricing condos, townhouses, and single-family homes.

Watch and listen to the Garbutt+Dumas Real Estate Podcast below and follow us on SpotifyiTunes & YouTube.

NOTES FROM THE EPISODE:

The strategies behind selecting a home’s price when listing is constantly changing. This process depends heavily on the following factors:

  1. Current Inventory and Time of Year
    • Inventory is likely to be low in the first few months of the year. A seller may opt to list their home at a low price and then rely on multiple offers and bidding wars to increase the final sale price to a number equal to or above market value.
    • More inventory will likely become available in late Spring, which will decrease the amount of competition. The market is still hot during this time, but sellers will see fewer multiple offer situations.
    • The real estate market may begin to cool down as the year progresses into the winter months.  
  2. Market trends
    • Know what types of homes are popular at this time. Entry-level single family homes are getting a lot of interest and selling quickly. In these circumstances, pricing conservatively can work in your favour. Mid to upper-priced homes should be listed at or above market value. This can give the homeowner some wiggle room to negotiate price if needed.  
  3. Seller’s situation
    • If you have already bought another property and need to sell your current one quickly, the best option in most situations is to list your home just below recent sales. This strategy will increase interest and hopefully secure a quick deal. 
    • If you are selling your home and want to achieve a goal number to buy another property afterward, price it at a number you feel comfortable selling it for. In this circumstance, do not expect a bidding war to push up the price. 

Current Strategies for April 2021

listing price strategies for a townhouse

Underpricing your listing is a riskier strategy now than it was in February or March.

For example, in March, a homeowner may list their $1.5 million home for $1.399 million to get more interest and offers. In the recent market, there is less competition to drive up that price, so it is most likely the best idea to price it at the value you believe it should sell for.

If a homeowner decides to list it below its value to increase the attention the home receives, give it at least six days on the market before looking at offers. It is also important to understand that you may have to relist your home at a higher listing price down the line if you initially do not get the offer price you desired.

The Classification System for Pricing Strategies when Listing

When selecting a listing price, G+D classifies townhouses and single family homes into three different categories:

A – a great house with a fantastic layout on a prime street in a desirable neighbourhood

B – a good house on a less favoured street in a desirable neighborhood

C – a house with a poor layout or in need of renovations on a busy street

Currently, you can still get away with a multiple offer strategy (listing low and expecting a bidding war to raise the final sale price) for a home in the A classification group.

The low B and C classification group homes should be listed at the price you think the property is worth. There will be more products available in these groups so the competition may be lower.  

Condos follow a different system when selecting a listing price:

listing price strategies for condos

The real estate market for condos is more price-sensitive and budget-conscious. Many buyers have a strict ceiling for the maximum price they are willing to pay. Because of this, homeowners have to be very cautious with their choice of listing price – they could list low to get more eyes on the property or stretch above the last sale price to encourage a higher offer.

The neighbourhood plays a huge role when selecting a listing price for a condo. Communities within each city are following different trends. In most cases, sellers should list their condo at the price point they want to sell it for.  If it is a unique property with a great view or if it is a prime building that has not seen inventory in the last couple of months, you may be able to price more aggressively in the hopes of attracting more substantial offers.

Lastly, if you have a tenanted condo, try not to overprice it as it will most likely not outperform other available apartments for sale.

Planning a Pricing Strategy when Listing your Home

It can be challenging to choose the best price when listing your home. When trying to determine the value of a home, James and Denny go through the following processes:

  1. Dig deep into the history of similar properties in that price point
    • Ex. Review prices of all 2002 condo sales
  2. Review the sales in that area for the last 3 to 6 months
    • Ex. All sales in that building or complex
  3. Break down the sales from the previous 30 days
    • Ex. Look for sales for the specific price range that you are thinking of selling at and compare them to your property

When choosing a listing price, it is essential to have a thorough understanding of the product and how properties at that price point have recently been performing in the market. Keep in mind that every home is unique, and it is best to speak with a Realtor who can help you find your home’s market value.

Do you have questions regarding current market trends in your neighbourhood and what your home could be worth? Contact us! We would love to help you maximize your property’s value.

Market Update Spring 2021: Is the Market Finally Slowing Down?

In the last 30 days, the G+D team has experienced an abrupt shift in the market as more properties become available after months of few listings.

James and Denny summarize what they have seen recently compared to the highly competitive, subject free and multiple offer situations they encountered at the beginning of the year.

This episode will focus on the difficulty of evaluating a property in this current market, the importance of setting a reasonable listing price as more properties go up for sale, the significant jump in single-family home sales in the last four months, and the debate on whether the government will introduce a new tax for homeowners.

Watch and listen to the Garbutt+Dumas Real Estate Podcast below and follow us on SpotifyiTunes & YouTube.

New Construction Opportunities in Vancouver

New construction in the Greater Vancouver Area offers great incentives and lower deposits for potential home buyers. Even so, how can you be sure that buying new construction is the best move for you?

James and Denny weigh in on the pros and cons of investing in pre-built homes and share past experiences with this type of property.

This episode will focus on the significance of a developer’s reputation when considering new construction, the benefits of a seven-day rescission period, the permitted size and layout changes during construction, paying 5% GST on top of the purchase price, and the 2-5-10 year warranty.

Watch and listen to the Garbutt+Dumas Real Estate Podcast below and follow us on SpotifyiTunes & YouTube.

5 Tips to Avoid Buyer Fatigue in a Seller’s Market

What is Buyer Fatigue?

We are currently experiencing a hypercompetitive seller’s market with low inventory and many active buyers. This quickly spirals potential home-buyers into the frustrating realm of buyer fatigue. Buyer fatigue refers to buyers who have seen so many properties, written too many unsuccessful offers, and are flat out exhausted with the buying process. Searching for the dream home can be an exhaustive undertaking and when you are losing out time and time again you start to feel like you will never win a bid.

Where Does This Fatigue Come From?

Buyer fatigue sneaks up on house hunters that want to start slow and take their time feeling out a hot market. Possibly based on their family or friends’ advice, they may make a cautious initial offer on a home with the hopes of strengthening it if it’s rejected. Unfortunately, listening to someone who is not familiar with the market can lead you into disappointing territory.

When buyers are skeptical of market advice and don’t capitalize on opportunities to write winning offers, they can waste crucial weeks, or even months, in a damaging cycle of submitting offers, getting rejected, modifying offers, getting rejected again, then starting all over with the next property. Listening to a knowledgeable Realtor can help you navigate through this process in a more efficient way.

The Greater Vancouver housing market is extremely competitive. The current market value in most neighborhoods is quickly increasing and the sale price of each condo, townhouse, or single-family home sets the precedent for the next one in that neighborhood. New home buyers can fear overpaying when advised to bid above the asking price on their first offer. The cold hard truth is that some houses are selling for upwards of $100,000 over the asking price. Sellers have the leverage and the luxury to pick whichever offer has the highest price and the fewest subjects.

Buyers have to learn quickly! If you take too long adjusting to the market conditions, buyer fatigue is going to set in. Unfortunately, desperation can also kick in at this point.

The biggest bummer of this whole process is that when the buyer finally does buy a home, they may long for the one that got away!

5 Tips to Boost Your Defense Against Buyer Fatigue:

  1. Hire an experienced agent you can trust! This means that right now may not be the best time to try out your cousin who just got licensed. Choose an agent who can balance writing a winning offer and protecting your interests. Select someone who clearly communicates and takes the time to explain the risk in waiving subjects.
  2. Speak with a mortgage specialist to help you get the most out of your money. They can walk you through the best type of financing for your individual situation and share helpful tips based on their knowledge of the industry.
  3. Get fully and thoroughly pre-approved! Get pre-approved before making an offer. Make sure to complete all the paperwork you can ahead of time.
  4. Don’t be afraid to go ALL IN with your first offer. Know that it is okay to fall in love with the first house you make an offer on. Remember that subjects can be removed if due diligence was properly done before writing an offer. Having an experienced agent to guide you through these decisions is vital.
  5. Consider updating your wish list. If you have lost out in previous offers, speak with your agent about reevaluating your wish list. You can increase the number of potential homes by broadening your preferred neighborhoods or updating the minimum property size (just to name a few). Additionally, the properties in less popular areas may have reduced audiences which lowers the amount of competition.

Next Steps for Success

While waiting for a showing or in preparation for your next offer, listen to our most recent podcast episodes to equip yourself with the information you need to help land your dream home:

The Right Questions to Ask Listing Agents When Buying a Home

Buyers Beware: Unpermitted Renovations

Market Update: The Growing Demand for Detached Houses

It is important to know that buyer fatigue can happen to anyone, even experienced buyers.  Align yourself with a proven and trusted team. Our hope is that you will find the home of your dreams before the fatigue sets in!

How we Helped a Family Sell a Townhouse and Condo to Buy their Dream Detached House

This is the story of a family selling two strata properties and coming together to buy a multigenerational dream detached house in a scorching-hot market. We will rename them the Smith Family for the purposes of this blog post.

Currently, we are knee-deep in a Seller’s Market, and desirable, well-priced properties are flying off the shelf. While detached houses are selling quickly with overbooked showings and multiple offers, the buyer’s side is very competitive. Buyers may lose out on several houses before winning the bid. So, what does this mean for those wanting to buy AND sell?

Searching for the Dream Detached House

It was an advanced magic trick that required trust, timing, and finesse to secure this three-part deal for the Smiths. We had been searching for the perfect multigenerational home for the Smith family for over a year in the Port Moody real estate market. It was a slower Buyer’s Market when we started shopping so we had more time and less pressure to visit local showings. Unfortunately, the right product was nowhere to be found.

The Smith family was looking for:
– A completely above-ground in-law suite that felt like part of the main home.
– A property in the Heritage Mountain, Port Moody area to stay close to friends and family.

We found a few potential homes in the summer of 2020, but the market was starting to shift. We put in offers on 3 or 4 houses but lost out in multiple offer situations because we had Subject to Sale of TWO properties. 

Finding the Dream Home

Being Port Moody realtors, we had the advantage of regularly being in the area. We continued to keep an eye out for any new listings that fit the bill. It took time and patience, but a few weeks ago we finally found THE DREAM HOME! The Smith family was willing to do anything to get this house. The property was $200,000 over budget (and in our opinion a little overpriced), but otherwise perfect. My real estate partner Lucas and I discussed this purchase many times and it all boiled down to timing. 

Sale #1: How we Won the Dream Detached House

The dream detached house with a SOLD sticker

It is a challenge to negotiate dollars off the purchase price in a Seller’s Market. Our plan was to present the offer in a way that would convince the Seller that this is a win for all of us. We put our offer together with an extensive Comparative Market Analysis (CMA) arguing our case for the purchase price and a personal letter from the family.

We decided to drop the Subject to Sale of the townhouse because we had a good feeling about where the market was at for this type of property.

After a few cleanup items and a fair conversation with the Listing Realtor, the Seller accepted our offer! The house had been listed for over a year, and the family wanted it sold.

Condo and Townhouse for Sale

Now came the scary part: we needed to sell, and we needed to sell fast. With only two months until completion (the day you pay for the home), there was not a lot of time to test out the market. We priced their Westwood Plateau condo and Heritage Mountain townhouse at the top end of market value. This meant that we had to bring the heat with marketing their homes!

The townhouse in Port Moody was very popular, so we decided to give it 2 weekends on the market before looking at offers. This strategy was nerve-wracking and definitely tested our patience. For the condo in Coquitlam, we opted to look at the offers as they came. We put the condo on the market one week before the townhouse, as we knew it could potentially take longer to sell.

Sale #2: Offer time for the Cascade, Coquitlam condo

Two real estate agents standing in front of a sold condo in Coquitlam

The day before we were going to drop the condo price, we received an offer! We negotiated the price up to a very acceptable range: $5,000 higher than the price drop that was scheduled. Just to note, the contract did come with some subjects.

Sale #3: Offer time for the Discovery Ridge, Port Moody Townhouse

Two realtors standing in front of a sold townhome in Port Moody

We were scheduled to present offers on the townhouse in Port Moody the very next day. We received 8 offers after 45 buyer showings. Two of those offers really stood out. All buyers were given a chance to put their best foot forward and, in the end, we had a winner!

I want to take a quick break here to let you know that the winner was the LAST BUYER to view the property. We may have easily left money on the table if we had not given every person a chance to see the home.  

Once we had our winner, we negotiated the exact dates we needed for Completion/Possession to line up with the dates on the Smith’s DREAM detached house purchase. We also managed to slip in a very clever subject protecting the Sellers in case subjects did not get removed on the condo sale.

Are you still with me? To break it down, we put in a Subject to the Seller entering into an unconditional contract to purchase a new residence. This type of subject typically does not work in a buyer’s market, but we knew the moment was right and had the expertise to present it to the buyers in a way that made it feel like a win-win. We agreed to let the buyers do some due diligence during that time AND we got the 2nd best offer to agree to be in a Back-Up Offer position. This way, if the first offer fell through for any reason, we had another one on deck!

Putting up SOLD Stickers on THREE Properties

When Subject Removal day arrived, we were excited to remove subjects on all 3 properties. Our plan worked perfectly!

How were we able to quickly sell the strata properties? The major keys were market timing, appropriate price, and prepared real estate agents. Having the strata documents ready, all paperwork in order, and thoroughly reviewing the documents prior to listing gave buyers a sense of confidence. Buyers have a much higher rate of removing subjects when realtors can answer every question with clarity. This is extremely important. 

Goodbye strata life!

The Smith family is packing for the big move that is set to take place in just a few short weeks. Our real estate team is delighted for this family and so grateful that they put their trust in us. 

Congratulations to our amazing clients on your dream detached house in Port Moody!

Vancouver Housing Market Recap and 2021 Predictions

The real estate industry fluctuated throughout the 2020 year, finishing strong during the fall and early winter months. The last Garbutt and Dumas recap was done in June 2020 which marked an uncertain time with little data to help with future predictions.

Fortunately, there was an increase in activity and September was a record-breaking month for the Garbutt and Dumas realtors (with November being a close second). Rates are low, higher priced properties are starting to move, and land value is increasing.

In September:

  • Single-family homes went from slow-selling to outrageously active
  • Condos remained relatively slow unless they had a strong selling feature (like great view or good neighborhood)
  • Big trend towards upsizing. Buyers are wanting more space!
  • Multiple offers for certain listings (depends on how saturated the market is in that area)
  • The number of homeowners moving out of downtown Vancouver to the surrounding cities is still increasing
    • Driven by affordability
    • Includes Langley, Tsawwassen, Sunshine Coast, and the Okanagan
    • Communities with little population will double in a relatively small amount of time
    • This movement will keep the market busy for years to come
  • Downtown Vancouver market remained slow
    • Buyers finding larger and newer condos in Brentwood for the same price

What makes the market climb?

The real estate market will climb when there is a shortage of supply. When there are limited properties on the market, more buyers are looking at each one. Real estate agents may receive multiple offers on a listing, however only one can purchase the house. The other buyers must continue looking and place an offer on another property when it becomes available. As more buyers enter the market, it can become more competitive, pushing the prices to increase.  In a hot market, the offer that is subject free and has a deposit attached will be a real contender.

There is a definite upward trend in the real estate market and here are the numbers to prove it!

A sales ratio breaks down how many sales were completed in each month compared to the total number of listings available. Townhouses had the highest sales ratio with 40% and condos had the lowest sales ratio with 20% – both are significantly high. Townhouses are in high demand and it is estimated that we will see an approximate increase in price of 10-15% by summer.

Low interest rates have also played a role in the real estate market climb. More people can now afford a mortgage and are entering the real estate market. This increases the competition and can help to boost prices. HSBC announced a 0.99 rate. This will put pressure on other big banks like RBC, TD, and Scotia Bank to make their rates more competitive. It looks as if rates will remain low!
A great tool for finding out what type of rate you will qualify for is ratehub.ca. Talk to your bank or an independent mortgage broker for a better idea on your specific situation.

our predictions for 2021:

  1. The market will be active – lots of up-sizers (due to low interest rates and wanting more space) and down-sizers (due to high prices)
  2. People will continue moving out of Vancouver into smaller cities and suburbs
  3. Port Moody, Langley, Maple Ridge, Squamish, Tsawwassen, North Vancouver, and East Vancouver will see record-high prices and sales activity
  4. Townhouses and detached houses will be hot! Value of property will continue to increase
  5. Condos will increase in price (but less so compared to houses and townhouses)
  6. More investors will be coming back

Denny’s advice: buy a house now or you may never own one!

There is a limited amount of land available for single-family/detached homes to be built on. With a decreased chance of a newer house being built in your community, there are fewer properties to compare to when looking to sell. This leads to less competitive pricing, which will in turn increase selling price over time.

It is hard to know for sure if all of our predictions will come true, but one thing is for certain: the Garbutt and Dumas realtors are looking forward to helping you navigate through all things real estate in 2021!

Listen to The Garbutt+Dumas Real Estate Podcast: 2020 Greater Vancouver Market Recap – What’s Happening Now and What to Expect Next Year episode to listen as James and Denny discuss more about what trends they have seen and their predictions for 2021.

Do you have questions regarding low-interest rates, the upsizing trend, the popularity of apartments and townhouses, and the growing appeal of moving out of the city and into the surrounding areas? We would love to hear from you – contact us and we can help you with some of the specifics.