August Sales up 36% over August 2019 totals, and 20% over the 10-year August average.
The Short, the Quick, the Easy summary
SALES
In August, Greater Vancouver continued to see higher than normal sales volumes due to continued pent-up demand from sales lost in March to the end of May. Not only were sales more than normal.... 19.9% over the August 10-year sales average. No need to get too excited as August is always a slower in regards to sales volume and this can be attributed to pent-up Buyers from the early shut down in March/April/May.
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 Aug'20 reached 1,095, 2.3% decrease from the 1,121 detached sales recorded in July'20 and a 55.1% increase from Aug'19 (706).
2) Attached(townhouse) totalled 620, a 2.1% increase compared to the 607
sales in July'20. Aug'20 sales saw a 51.5% improvement from Aug'19(409).
3) Sales of condos homes reached 1,332 in Aug'20, a 5% decrease compared to the 1,400 sales last month (July'20). Aug '20 surpassed '19 totals by 19.4%.
INVENTORY - Properties for Sale
The total number of residential homes for sale(12,830) is a 6% increase compared to July'20(12,083). The 4% decrease compared to Aug'19 continues to move in opposite direction of increased sales volumes; putting more pressure on Buyers.
New listings kept up to sales. Homes brought to market in all categories increased by 55.1% compared to new listings in July'20. Seller engagement has slowed with 2.3% decrease of newly listed for sale compared to Aug'19.
This begs the question: Why did so many homes come to market in August? Will this continue into September? Which is traditionally a high volume month for residential activity.
I am faithful in a controlled market due to the month-to-month increase of new listings, while pent-up demand continues to push sales through at a torrid pace.
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:
23.8% (all properties combined) compared to July (25.9), June(21) May (15)
23.7% (detached homes) compared to July (25.1), June (20), May (13.5)
30.5% (townhouses) compared to July(31.1), June (25), May (18.9)
21.6% (condos) compared to July (24.7), June (21), May (14.8)
What does this mean?
The ratios are ALL in the Seller's market range. We are now 3 months into this trend but are close to an official Seller's market... again. Townhouse Sellers are in a VERY advantageous position, while Buyers for condos have much more selection.
Prices
The MLS Home Price Index composite benchmark price for all residential property is Metro Vancouver is 5.3% higher than August 2019, and a mere 0.7 increase from July'20.
Now that we are returning to 'BUSY' 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. I sold a condo DT Vancouver closing end of July and it took the full week for the offer, but did obtain 99% of the asking 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
Again !....57.2% increase in sales compared to monthly 2019 sales (August)
The Fraser Valley Real Estate Board (FVREB) processed a total of 2,039 sales on its Multiple Listing Service® (MLS®) in Aug'20, an decrease of 2.9% compared to 2,100 sales in July'20 and also an increase of 57.2% compared to the 1,297 sales during Aug'19. Sales reached the 2nd highest recorded in August in 10 years. Considering the 10-year average, August put sales volumes to shame shattering by 38%.
New listings decreased by a 6.8% compared to July'20 intake. Good news is that the new listings is 40% higher than Aug'19 and 28.9% higher than the 10-year avg. The disparity between sales and new inventory is concerning. Too many sales, too few new properties to the market; a 31% deficiency.
Sales
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.
Inventory
The Fraser Valley Board received 3,309 new listings in Aug'20, a 6.8% decrease compared to July'20 and a 40.4% increase compared to Aug'19.
August finished with 7,404 active listings, an increase of 0.9% compared to July'20 inventory and a decrease of 7.9% from July'19.
Digging deeper into the stats: Compared to Aug'19; 57% more sales, 40.4% additional new listings. A scary gap in slower moving Sellers vs aggressive Buyers.
Prices
Average HPI Price Index for ALL property types decreased by 1.4% from July'20. This gain is weighted due to the high sales volumes of single detached homes and townhouses. Note: Detached homes are up 13.2% compared to Aug'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.
