BOOM! The real estate market is in a Fury.... once again. 80% increase of sales compared to 2019.
The not so Short, yet Easy summary
February real estate in Greater Vancouver brought the fury. Continued transition throughout asset classes positions townhouses and detached homes at 80% more sales than the same period last year. Open Houses are 15-minute scheduled showings with approx 12-16/day. Offers are multiples, accepted offers are pushing 10% over listing price, subject clauses are for the benefit of the Buyer; not so much for completing with other offers.
February'21 sales were 42.8% higher than the 10-year average.
SALES - How does last months sales break down?
1) Sales of detached homes in Feb'21 reached 1,231, a 39% decrease from the 740 sales recorded in Jan'20 and a 79.7% increase from Feb'20 (685).
2) Attached(townhouse) totalled 737, a 62.3% decrease compared to the 454
sales in Jan'20. Feb'21 sales saw a 82.4% improvement from Feb'20(404).
3) Sales of condos homes reached 1,759 in Feb'21, a 47% increase compared to the 1,195 sales last month (Jan'20). Feb'21 surpassed Feb'20 totals(1,061) by 66%.
A certainly unexpected sales totals as they nearly doubled 2020 Feb results. February officially welcomed condos to the 'high' under demand asset party.
INVENTORY - Properties for Sale
The total number of residential homes for sale(8,358) is a 0.6% increase compared to Jan'21(8,306). This inventory total is just 9.1% lower compared to Feb'20 (9,195). .
New listings continues to be a bright spot to keep up to sale volumes. Homes brought to market in all categories increased by 12.7% compared to new listings in Jan'21. Compared to Feb'20, new listings increased by 26.1%.
Current listings are 21.4 below the 10-year average.
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.
Sales-to-Active ratio for the property types:
44.6 % (all properties combined) compared to: Jan (28.8),Dec (36.2)Nov (29.7)
41.8 % (detached homes) compared to: Jan (26.3), Dec (35.2), Nov (27.9)
61.8 % (townhouses) compared to: Jan (37.6), Dec (50.4), Nov (40.1)
41.7 % (condos) compared to: Jan (27.8), Dec (33.1), Nov (23.9)
What does this mean?
All property types are above 40% and under higher demand than the supply can contain and are nearly double of what a balanced market ratio is considered. Condos has been the lowest ratio for many months and has now caught up to the other asset classes.
The MLS Home Price Index composite benchmark price for all residential property is Metro Vancouver is 6.8% higher than Feb'20, and a mere 2.6 increase from the previous month of Jan'20.
Detached HPI up 13.7 %
Townhouse HPI up 7.2 %
Condo HPI up 2.5 %
Now that we are hoping to avoid a 3rd Wave COVID-19 conditions... what is to be expected?
Realtors are able to conduct in-person open houses safely. We schedule opens now, and allow 15 min independent viewings. 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
Prices overall are up 25% year-over-year!
The Fraser Valley Real Estate Board (FVREB) processed a total of 2,815 sales on its Multiple Listing Service® (MLS®) in Feb'21, an increase of 64% compared to sales in Jan'21 (1,718) and also an increase of 108% compared to Jan'20.
Detached homes had a 60% increase in total in sales volumes (881) compared to Jan'21 (978) and a 103% increase from Feb'20(463).
Attached Townhouses saw a 71% increase in sales (788) compared to Jan'21 (461) and a 131% increase from Feb'20(341).
Condos saw a sales increase of 80% (667) compared to Jan'21 (315) and a 111% increase from Jan'21(313).
Condos, the asset class that has been performing at the slowest pace made a big move in more than doubling sales from last year.
New listings increased by 10% compared to Jan'21. Also, new listings are 29% higher than Feb'20.
Total Inventory saw an increase of 8% compared to Dec'20 inventory and a decrease of 31.5% from Jan'20.
Average HPI Price Index for ALL property types increased by 0.6% from Jan'21, and an aggressive 25% 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.