Monthly sales surpass June 2019!!
Greater Vancouver real estate market continues to show its strength.
The Short, the Quick, the Easy summary
In June, Greater Vancouver has surpassed pre COVID-19 sales volumes! Buyers and Sellers lead by their Realtors are confident and transacting at levels higher than 2019. Sales burgeoned to 65% over May'20 sales volumes but more importantly exceeded June '19 tallies by 17.6%. Starting in April I stopped comparing current real estate activity to previous years because we were in un-chartered grounds and it is not an even playing field to compare. We are past that now.
Low interest rates, confidence in progressing from Level 1, to Level 2, to Level 3 government structured re-opening of the economy in British Columbia has flowed into real estate. I feel there is no surprises here. An educated public, prepared Realtors and clients have fuelled the already resilient and strong real estate market in Greater Vancouver.
As robust as this 2nd month of recovery is, we are still 22% behind the 10-year June sales average.
SALES - How does last months sales break down?
As we are returning to a regular rhythm in real estate activity, statistic focus will return to annual comparisons as well as previous month stats.
1) Sales of detached homes in June'20 reached 866, 62.1% increase from the 534 detached sales recorded in May'20 and a 16.1% increase from June'19 (746).
2) Attached(townhouse) totalled 472, a 58.4% increase compared to the 298
sales in May'20. June'20 sales saw a 21% improvement from June'19(390) .
3) Sales of condos homes reached 1,105 in May '20, a 69.2% increase compared to the 653 sales last month (May '20). June'20 surpassed '19 totals by 17.4%.
INVENTORY - Properties for Sale
The total number of residential homes for sale(11,424) is a 15% increase compared to May'20(9,927). However, we need to be careful with the 23.7% decrease compared to June'19. When inventory drops, Buyers compete and prices rise.
New listings kept up to sales. Homes brought to market in all categories increased by 57.1% compared to new listings in May'20. Seller engagement is stronger with 21.8 increase of newly listed for sale compared to June'19.
I am content seeing new inventory keeping up with surging sales. It is also comforting that newly listed properties are surpassing 2019 levels.
Our 2nd 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:
21.4 (all properties combined) - compared to May'20 (15) & April'20 (11.8)
19.9 (detached homes) compared to May'20 (13.5) April'20 (10)
25.2 (townhouses) compared to May'20(18.9), April'20 (14.7)
21.3 (apartments) compared to May'20(14.8), April'20 (12.4)
What does this mean?
The ratios have ALL made major moves into the beginning side of a Seller's market. We are seeing multiple offers once again in well-priced properties. Townhouses are the hottest real estate category in Greater Vancouver.
"Home prices have remained steady with minimal fluctuation over the last few months," says REBGV Chair Colette Gerber.
Now that we are returning to 'normal' conditions... what is to be expected?
- Realtors - Buyer Agents be ready to compete. Listing agents can get creative with listing and pricing strategies.
- Sellers - Are you getting the most for your property? Don't be afraid to give your listing time (more than 1 week) and exposure to find that right Buyer and your maximum price.
- Buyers - Interest rates are low. If you find a good deal, take it! If you don't, someone else will.
- REBGV Sourced Summary
If you are thinking of selling in 2020, reach out to me, and lets talk about COMPETITION, INVENTORY and TIMING!
Fraser Valley Real Estate Update
113% increase in total sales in June'20 compared to May'20 totals!
The Fraser Valley Real Estate Board (FVREB) processed a total of 1,718 sales on its Multiple Listing Service® (MLS®) in June'20, an increase of 113 % compared to 805 sales in May'20 and also an increase of 23% compared to the 1,306 sales during June'19. Sales statistics are now at a level of typical activity.
Chris Shields, President of the Board adds, “People buy and sell for lifestyle reasons and currently, even during this uncertain time, conditions are
favourable. The market is balanced, inventory is growing, and prices remain stable.”
However, new listings increased by 57% compared to May'20 intake. This is far from the 113% gain in sales volumes. This is a predicate of a inventory shortage that Realtors will be following that will drastically affect purchasing competition for Buyers and future pricing.
Detached homes have seen a 126.6% increase in sales volumes (657) compared to May '20 (290) and a 30.4% increase from June'19.
Attached Townhouses have seen a 102.2% increase in sales (451) compared to May'19 (223) and a 38% increase from June'19.
Condos saw a sales increase of 113.1% (407) compared to April '20 (191) and a 23.7% increase from June'19.
Detached homes continue to be a foundational driver of the real estate sector in the Fraser Valley with leading sales volumes and increased capacity.
The Fraser Valley Board received 2,345 new listings in May, a 57% increase compared to May's intake of 2,207 new listings and a 23 % increase compared to June'19. May finished with 7,063 active listings, an increase of 9% compared to May's inventory and a decrease of 17% from June'19.
Digging deeper into the stats the real story/concern is decrease in active listings in the 3 major categories compared to June'19:
Single Detached: - 27.6
Townhouse: - 18.4%
Average HPI Price Index for ALL property types increased by 4.6% from May'20. This gain is weighted due to the high sales volumes of single detached homes vs lower priced townhouse and condo segments.
- 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 recent Blog on COVID-19
and how we can respond in the real estate sector in Vancouver.