A slight calming in November. Sales up 22% over Nov'19 totals, but drop 16.9% from October'20 sales.
The not so Short, yet Easy summary
SALES
The calming of the storm, November saw sales drop 16.9% from a red hot October, yet still 22% over 2019 tallies. However, new listings decreased month-to-month by 27%, once again leaving Greater Vancouver with less new inventory vs sales activity, leaving it vulnerable to price increases.
Townhouse and detached home sales again lead the way. Moving upward in property class and moving outward away from urban centers is the story.
SALES - How does last months sales break down?
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1) Sales of detached homes in Nov'20 reached 1,061, nearly a 20% decrease from the 1,335 sales recorded in Oct'20 and a 28.3% increase from Nov'19 (825).
2) Attached(townhouse) totalled 632, a 20% decrease compared to the 782
sales in Oct'20. Nov'20 sales saw a 40% improvement from Oct'19(451).
3) Sales of condos homes reached 1,371 in Nov'20, a 12.6% decrease compared to the 1,570 sales last month (Oct'20). Nov'20 surpassed '19 totals(1,222) by 12.1%.
INVENTORY - Properties for Sale
The total number of residential homes for sale(11,118) is a 10.5% decrease compared to Oct'20(12,416). This inventory total is just 3.2% higher compared to Nov'19. Any decrease in supply is our trigger to then watch for higher prices.
New listings continues to be a bright spot to keep up to sale volumes. Homes brought to market in all categories decreased by 27% compared to new listings in Oct'20. Compared to Nov'19, new listings increased by 36.2%.
Arguably the MOST important stat at this time is the listing-to-sales ratio. Our benchmarks are 12 and 20. When the ratio goes below 12, for continuous months, we are generally in a Buyer's market where prices can come down. When the ratio rises above 20 for continuous months, we are in a Seller's market where prices can rise.
The ratio for the property types are:
29.7 % (all properties combined) compared to: Oct (29.7), Sept (27.8) Aug (23.8)
27.9 % (detached homes) compared to: Oct (30.9), Sept (28.3), Aug (23.7)
40.1 % (townhouses) compared to: Oct (43.5), Sept (36.1), Aug (30.5)
23.9 % (condos) compared to: Oct (24.9)Sept (24.8), Aug (21.6))
What does this mean?
We are DEEPLY engaged in a Seller's market and we have been officially in a Seller's market since June. Townhouses continue to run rampant in this stat breaching the 40% mark. Condos remain the slow-zone.... surprisingly.
Prices
The MLS Home Price Index composite benchmark price for all residential property is Metro Vancouver is 6% higher than Oct'19, and a mere 0.4 increase from Sept'20.
1-year Change
Detached HPI up 9.4%
Townhouse HPI up 5.6%
Condo HPI up 3.4%
Now that we are entering 2nd Wave COVID-19 conditions... what is to be expected?
Real Estate Council of B.C. asking that Realtors not hold in-person open houses until case numbers come down to manageable levels. Here is link to our protocol and safety considerations we as Realtors are taking to keep our clients safe.
- REBGV Sourced Summary
If you are thinking of selling in 2020, reach out to me, and lets talk about TECHNOLOGY, INVENTORY and TIMING!
Fraser Valley Real Estate Update
Fifth consecutive month of record-breaking or near-record activity for sales and new listings in the region.
The Fraser Valley Real Estate Board (FVREB) processed a total of 2,173 sales on its Multiple Listing Service® (MLS®) in Nov'20, an decrease of 8.3% compared to sales in Oct'20 and also an increase of 54.7% compared to Nov'19. Detached homes and townhouses saw the strongest November demand in 99-year history.
Sales
Detached homes had nearly the exact total in sales volumes (978) compared to Oct'20 (979) and a 90.3% increase from Nov'19(514).
Attached Townhouses saw a 12.9% decrease in sales (532) compared to Oct'20 (611) and a 51.1% increase from Nov'19(352).
Condos saw a sales decrease of 14.3% (430) compared to Oct'20 (502) and a 15.3% increase from Nov'19(373).
Detached and townhouses continue to light up the sales environment in the the Fraser Valley.
Inventory
New listings decreased by 28% compared to Oct'20 intake. Good news is that the new listings is 18.1% higher than Nov'19.
Total Inventory saw an decrease of 14.9% compared to Oct'20 inventory and a decrease of 13.2% from Nov'19. Once again; low inventory level growth comparative to high sales growth is sending the market in 1 direction... higher prices
Prices
Average HPI Price Index for ALL property types increased by 7.2% from Oct'20 and a whopping 23% increase in 1-year. This gain is weighted due to the high sales volumes of single detached homes and townhouses.
- FVREB sourced summary
Considering COVID - 19 What does this mean?
As a Seller - Do you want the public in your home? Leverage digital marketing efforts such as 3D virtual tours. Accept Subject to Viewing offers. Consider lockbox options allowing flexibility in showing times. Open Houses are still being discouraged by local real estate boards.
As a Buyer - will Sellers be allowing Buyers and the public into their homes? Traditional Open houses are NOT an option during the state of emergency in BC. Only private showings are permitted. Virtual open houses & tours are happening! Sellers & Buyer agents may require masks, gloves in order to create a safe environment for all.
Real estate has been deemed an essential service. Realtors are ready to find safe solutions to make transactions for our clients (Buyers and Sellers) happen.
Here is my
Blog on COVID-19 and how we can respond in the real estate sector in Vancouver.
