Hi Everyone! So, February was a busy month! I don’t know if anyone could predict the intensity of the current market coming this quickly into the new year, but he perfect storm of low interest rates, low inventory and increased Buyer demand after a long (enough) slow down has created an active and competitive market.
The different markets (price points and type of product) are experiencing slightly different markets though multiple offers are common on anything nice that is priced well. A lot of agents are strategically listing low to drive up the competition and almost every agent is postponing any offer review until after the weekend Open Houses – so ensure you’re working with a good realtor and a good mortgage broker.
I wrote another longer blog post about Multiple Offers, so have a look if you’re curious about the scenario and how to be successful if you’re a Buyer: Multiple Offers and Vancouver Real Estate.
On the Westside of Vancouver:
– HPI Price has been fairly steady for months now, and Multiple Offers are becoming common in the condo and townhouse market, and detached houses when a home is listed strategically low. There was a detached house that received 30+ offers, but it was priced well below it’s value at $1,888,000 – so everyone and their mom took a shot with an offer – and ended up selling for $2,408,000. Generally, most detached houses aren’t receiving multiples unless there is something particularly special about it.
– Detached Houses on the Westside have maintained a steady HPI price for the last 11 months. The sales to active ratio is at 12%, which is low, but like I mentioned above, the good ones will go. Inventory since December is the lowest it’s been compared to the last few years (aside from holiday drops) and sales have been fairly steady over the last year. The median days on market is 17.
– Westside Condos have seen a steady HPI Price for over a year now. Total inventory is low right now – it hasn’t been this low since April 2018 – so I do expect it to increase in the Spring. The sales to active ratio is 43% for 1 bedroom condos and 21% for 2 bedroom condos, so expect competition and prepare for multiple offers, especially if the building allows rentals. The average days on market is 8-10 days, which is just enough time to list the property, hold Open Houses and then accept offers.
– Westside Townhouses are experiencing a similar market to Condos, particularly for 1 and 2 bedroom units. The HPI Price has been steady for over a year now. Inventory numbers were very high last year, so it’ll be interesting to see if inventory increases to those numbers, or stays around the numbers we’re seeing now, which is around the average over the last few years. The sales to active ratio is 25% for 1 bedroom townhouses, 31% for 2 bedroom condos and 10% for 3 bedroom townhouses (no surprise there, these are generally more expensive than Eastside houses). The median days on market is between 1 to 2 weeks.
Vancouver Westside Real Estate Stats up to and including February 2020
On the Eastside of Vancouver:
– The detached house market in particular is on a tear right now, with very low inventory and increasing prices, I don’t expect this market to slow down anytime soon. We’re seeing a lot of offers on detached houses, anywhere from 5 to 10 to 20+ so the competition is significant. The condo and townhouse market are a lot easier to navigate but there is still a lot of activity on the good, well priced listings.
– Detached houses are still far off the “top of the market” HPI price we saw over the last couple years, which tells me that this market still has a big price increase to see. Detached House inventory is REALLY low compared to the last couple of years. We haven’t see this amount of inventory since 2016, which was right as priced really started to increase, so expect detached house prices in increase while inventory and interest rates are low. The sales to active ratio for detached houses in East Van is 21%.
– Condo prices are close to the highest HPI prices we’ve seen over the last few years, so I don’t anticipate prices to increase significantly, but expect some increase over the next few months, especially on the good units in well maintained buildings. Condo inventory is more than what we saw throughout 2016 and 2017, but less than this time last year and just over half the highest amount of inventory we saw last year. The sales to active ratio for East Van condos is 56% for 1 bedroom condos and 26% for 2 bedroom condos.
– Similar to condos, Townhouse prices are close to the highest HPI Price we have seen over the last few years. Townhouse inventory has remained relatively steady over the last few years just due to the few number of townhouses across the city compared to condos, though I expect some of the Buyers looking for a detached house will settle for townhouses as prices of detached houses grow out of reach. The sales to active ratio for East Van townhouses is 37%. – The Median Days on Market for each market is between 8 to 10 days, which is standard when Listing Agents lookout offers after the weekend Open Houses.
East Vancouver Real Estate Stats up to and including February 2020
This market isn’t easy to figure out. Multiple offers are frustrating to navigate while pricing on certain listings has increased quite a bit over last year. Dial into your personal finances so you know what you can afford. There are good properties out there and with the right preparation and advice, you can be successful! Call me to talk about what you’re looking for, the buying process and how to navigate multiple offers – it’s a lot easier to talk about in person. It’s still early in the year, and the market still has a lot of growth to see this Spring so the sooner you learn about what’s going on, the sooner you can get in.
If you’d like to slowly dip your toes in the market, I can also set you up on a Custom Real Estate Search so feel free to contact me: email@example.com or 778-387-7371 to let me know what you’re looking for in a new home.
This kind of market leads to a needed reminder for Sellers – you need to ensure your property looks good, is priced right and has an agent truly trying to sell it. Contact me to talk about the best plan of action for the sale of your home – you need good marketing, positive open houses, market knowledge and good negotiation.
For those who aren’t necessarily buying right now, it’s still a great time to consider a re-finance or renewal of your current mortgage. Interest rates are at all time lows right now, so take advantage of it!
As always, let me know if you have any questions!