September Sales up 56.2% over Sept '19 totals, and 44.8% over the 10-year September average.
The Short, the Quick, the Easy summary
The most sales on record for September!
This market is HOT! Interest rates at the 2% for a 5-year fixed. Lifestyle needs at home are changing. Townhouse and detached home sales have seen the largest up-tick giving the impression that more space/room at home is in demand.
SALES - How does last months sales break down?
1) Sales of detached homes in Sept'20 reached 1,317, 20.3% increase from the 1,095 sales recorded in Aug'20 and a 76.8% increase from Sept'19 (745).
2) Attached(townhouse) totalled 730, a 17.7% increase compared to the 620
sales in Aug'20. Sept'20 sales saw a 73% improvement from Sept'19(422).
3) Sales of condos homes reached 1,596 in Aug'20, a 20% increase compared to the 1,332 sales last month (Aug'20). Sept'20 surpassed '19 totals by 36.9%.
INVENTORY - Properties for Sale
The total number of residential homes for sale(13,096) is a 2.3% increase compared to Aug'20(12,803). The 2.6% decrease compared to Sept'19 continues to move in opposite direction of increased sales volumes; putting more pressure on Buyers and prices.
New listings was a bright spot in that it 'tried' to keep up to sale volumes. Homes brought to market in all categories increased by 10% compared to new listings in Aug'20. Compared to Sept'19, new listings increased by 31.6%.
Why are townhouses and detached homes seeing such a rally? Increased time spent at home, in a home that may not have had enough space, becomes more apparent and elicits action. Action that translates in the sales volume we see today.
Current inventory and new inventory is sadly not keeping up. Prices are already going up. It has been a steady shallow climb, but ALL indicators say that expect robust increases in pricing immediately moving forward.
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:
27.8 % (all properties combined) compared to: Aug (23.8) July (25.9), June(21)
28.3 % (detached homes) compared to: Aug (23.7) July (25.1), June (20)
36.1 % (townhouses) compared to: Aug (30.5) July(31.1), June (25))
24.8 % (condos) compared to: Aug (21.6), July (24.7), June (21)
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. Condo inventory is the closest to balanced market, however, since it is this segment that sees the most sales volume and is the lowest priced assets, this could change quickly.
The MLS Home Price Index composite benchmark price for all residential property is Metro Vancouver is 5.8% higher than September '19, and a mere 0.3 increase from Aug'20.
Now that we are entering to 'CRAZY' conditions... what is to be expected?
- Realtors - Buyer Agents are competing. Listing agents are scheduling listings around open houses and offer presentations... AGAIN.
- Sellers - Where are you planning to buy next? Is that property available? You may want to consider putting that deal in place before selling.
- Buyers - Interest rates are low. If you find a good deal, take it! If you don't, someone else will, and you may pay more the longer you wait.
- 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
Sales on Fire! Up 66.9% compared to Sept '19! Highest on record.
The Fraser Valley Real Estate Board (FVREB) processed a total of 2,039 sales on its Multiple Listing Service® (MLS®) in Sept'20, an increase of 9.4% compared to sales in Aug'20 and also an increase of 66.9% compared to Sept'19. Sales reached the highest on record. Considering the 10-year average, August put sales volumes to shame shattering by 38%.
Detached homes have seen a 1.2% increase in sales volumes (877) compared to July'20 (867) and a 71.6% increase from Aug'19.
Attached Townhouses have seen a 7% decrease in sales (516) compared to July'20 (555) and a 44.9% increase from Aug'19.
Condos saw a sales increase of 5.7% (430) compared to June'20 (407) and a 25% increase from July'19.
Townhouses cooled in August and detached homes flourished.
New listings increased by 6.2% compared to Aug'20 intake. Good news is that the new listings is 26.9% higher than Sept'19. The disparity between sales and new inventory is concerning.
September saw an increase of 0.9% compared to Aug'20 inventory and a increase of 7.2% from Sept'19. Once again; low inventory level growth comparative to high sales growth is sending the market in 1 direction... higher prices
Digging deeper into the stats: Compared to Sept'19; 66.9% more sales, 26.9% additional new listings. A scary gap in slower moving Sellers coming to market vs more Buyers at the party.
Average HPI Price Index for ALL property types increased by 3.3% from Aug'20 and a whopping 15.1% increase in 1-year. This gain is weighted due to the high sales volumes of single detached homes and townhouses. Note: Condo prices are up 8.5% compared to Sept'19.
- 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.