“While we’re seeing a variety of long-term projections for the market, it’s critical to understand the facts and trends as they emerge,” said Colette Gerber, REBGV chair, in a release.
“Home buyers and sellers are adapting today, becoming more comfortable operating with the physical distancing requirements that are in place in the market,” she said .
“Home sale and listing activity is down compared to typical, long-term levels and up compared to the activity we saw in April 2020,” Gerber said. “Home buyers and sellers are adapting today, becoming more comfortable operating with the physical distancing requirements that are in place in the market.”
According to REBGV, “The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver today is $1,028,400. This is virtually unchanged from April 2020, a 1.4 per cent increase over the last three months, and a 2.9 per cent increase compared to May 2019”.
“Home prices have held relatively steady in our region since the COVID-19 situation worsened in March,” Gerber said. Go to our blog post about pricing as a marketing strategy to learn more about the impact listing price has on the interest your home garners and activity your home receives.
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”.
“Home buyers and sellers are working with their REALTORS® to use new tools to complete different stages of the real estate transaction virtually,” Gerber said. “When in-person interactions are necessary, we’re working with our clients to follow the physical distancing requirements set out by WorkSafeBC and the provincial health officer.”
While sales were up in May compared to April, prices have remained stable. The new measures and procedures put into place have become normal. Buyers and sellers are comfortable with the new home buying and selling processes. We believe the pent-up demand and historically low interest rates will augment the market recovery as long as the government financial piece is able to keep households afloat.
In light of the new procedures, a more thoughtful buyer has emerged. For the most part, today’s buyer views homes that work for them. We hear less objections since the buyer is well informed about the features, layout, location and finish of the home prior to viewing. We have found the use of Matterport technology to be a huge help as buyers prequalify a home prior to viewing. For more info, check out our blog post about why homes do not sell.
We have experienced and seen several multiple offers both in the low to mid range and luxury market. There are buyers shopping. The buyers have sold some are relocating but they need to move. As realtors, it is our job to prequalify the buyer viewing our seller’s home. We are asking pre-qualifying questions like “Has your buyer sold”, “Has your buyer driven by the home”, “Has your buyer reviewed all the documents”. If there is anything unique about the home, we ask if the buyer is aware of it. We have found this speeds up the selling process and weeds out any lookie-loos, tire kickers or curiosity seekers.
Stephen Poloz, on his final day as Governor of the Bank of Canada, announced yesterday that he is reducing the frequency of the bond buyback program. What does that mean? It means the BOC is confident that the economy will repair itself and the end is insight. Incoming governor, Tiff Macklem took over. We will soon see how his experience stacks up to our current economy.
Better Dwelling wrote this morning that HELOC’s tripled in March. This mean consumers used their home equity during the COVID-19 crisis. You can read the rest of the article here. Do we see this as a problem? Only if home prices decline drastically and people are forced to sell. If the economy heals itself, as the BOC’s actions seem to indicate, and prices remain stable, everyone should be okay.
If you need to sell or 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. 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…
The MLS® Home Price Index composite benchmark price for all residential properties in North Vancouver is currently $1,067,900. This represents an increase of 2.8 per cent from the MLS® HPI over the last year and up 0.9 per cent over the last 3 years, up 40.4 per cent over the last 5 years and up 65.9 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 held steady last month with no change. The index increased over the last 6 months by 4.5 per cent. This is good news!
There were 51 detached sales in May 2020, higher than the 38 detached sales recorded in April 2020 yet lower than the 105 sales in May 2019. Historically, May is the busiest month in the real estate market. COVID-19 could reset this to June. We feel COVID-19 may have caused a month lag in the market due to uncertainty. We will have to wait and see what impact COVID-19 has on activity going forward.
The benchmark price for detached properties was $1,543,800 in May. Again, stable and consistent with April 2020. This represents an increase of 2.4 per cent over the last year and a decline of 8.5 per cent over the last 3 years (peak of the market), an increase of 30.1 per cent over the last 5 years and an increase of 68.7 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. 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 balanced market with a sales ratio of 18 per cent and a build up of about 5.5 months worth of inventory. This tells us that nearly 2 out of 10 homes were priced properly while 8 homes out of 10 were not priced properly and did not sell. The average detached listing sat on the market for 24. Homes are selling on average for 97 per cent of list price. The detached inventory peaked in May 2019 at 475 and has been declining since. Inventory was at 288 listings last month. COVID-19 is not deterring all sellers and buyers from making a move. As the current new normal feels more normal, we are seeing homes listed and sold. The process has changed. We find consumers are feeling comfortable with the process and are proceeding with their plans. This sentiment was echoed in the news and by the REBGV.
North Vancouver saw 55 apartment sales in May 2020 that is consistent with the 45 sales in April 2020. The benchmark price of an apartment property is $577,200 (up about $5,000 from April 2020), a 3.6 per cent increase from May 2019. This represents an increase of 5.8 per cent over the last 6 months and an increase of 12.8 per cent over the last 3 years, an increase of 52.8 per cent over the last 5 years and an increase of 62.2 per cent over the last 10 years.
The condo market is a balanced market with a sales ratio of 18 per cent and a build up of 5.5 months worth of inventory. The average condo listing sat on the market for 34 days slightly more than the 24 days in April 2020 and consistent with March 2020. Condos are selling on average for 97 per cent of list price. Nearly 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 list price can have a negative impact. Buyers are informed, savvy and value driven. We know how to maximize buyer appeal and your sale proceeds.
Attached property sales in April 2020 totalled 27, more than 3 times the 8 sales in April 2020. The benchmark price of a North Vancouver townhome property is $974,200, which represents an 2.2 per cent increase from May 2019. This represents an increase of 4 per cent over the last 6 months, an increase of 2.7 per cent over the last 3 years, an increase of 52.4 per cent over the last 5 years and an increase of 63.8 per cent over the last 10 years.
The attached market is in a seller’s market position with a sales ratio of 29 per cent and a build up of just over 3 months worth of inventory. The average attached listing sat on the market in April for 23 days consistent with April 2020 and March 2020. Attached properties are selling for just over 97 per cent of list price and about 3 townhome sellers out of 10 priced their homes appropriately for the market while 7 did not.
Looking for more info? Call us, we are always happy to help.
Data courtesy of the BCREA, REALTOR® Reportt, REBGV and SnapStats®