Dear valued client,
February 2019 statistics have been released and will be an ongoing Monthly Real Estate Market Update. My analysis and predictions over the last few months are coming to fruition. Please take the time to read through this email as I have included some additional info that isn’t available to the public, which may affect your market greatly in the near future.
According to the Real Estate Board:
The Metro Vancouver* housing market saw increased supply from home sellers and below average demand from home buyers in February.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,484 in February 2019, a 32.8 percent decrease from the 2,207 sales recorded in February 2018, and a 34.5 percent increase from the 1,103 homes sold in January 2019. Last month’s sales were 42.5 percent below the 10-year February sales average.
“For much of the past four years, we’ve been in a sellers’ market. Conditions have shifted over the last 12 months to favour buyers, particularly in the detached home market,” Phil Moore, REBGV president said. “This means that home buyers face less competition today, have more selection to choose from and more time to make their decisions.”
“Homes priced well for today’s market are attracting interest, however, buyers are choosing to take a wait-and-see approach for the time being,” Moore said. “REALTORS® continue to experience more traffic at open houses. We’ll see if this trend leads to increased sales activity during the spring market.”
ADDITIONAL INFO THAT YOU WON’T SEE
As you can see from the Real Estate Board Statistics attached below, we are starting to see a slight uptick in prices in certain areas condo-wise. This validates my analysis from the previous few months with regards to the market activity.
Again, the Real Estate Board stats are very generic and without context to the end user. Unfortunately, as these statistics are public and free, the media uses them often, and sometimes for political purposes.
Just the same as last month, I’m here to provide some detailed relevant information segmenting different markets, to make it more applicable to your situation.
As usual, at the bottom of this email, you will find a copy of the Snap Stats, which is something I pay for to benefit my knowledge to my clients. As many of my investor clients know, the price range of sub-markets is critical to the liquidity of the asset. What does that mean? Usually, the lower the price of a solid home, the lower the risk. This does not mean you should buy a “tear-down”, it means the home has to be solid, at a lower price range of its competition. There are a lot of science and theories that gets proven again and again, that is difficult to put into an email. So if you have questions, I would be happy to discuss it with you over the phone or face to face. Please do feel free to call.
In the Snap Stats attached below, you will find the activity of the different price ranges per area. As a rule of thumb, the sales ratio under 12% represents a downward pressure (Buyers’ market). Sales ratio between 12% to 20% represents a balanced market. Sales ratio above 20% represents an upward pressure (Sellers’ market). Over the last 3 months, we have seen a rise in demand within the lower price bands, which theoretically should start to affect market prices. This month, you can see from the Real Estate Board Statistics that prices have indeed started to decelerate downwards, and some condo markets are actually seeing the prices starting to go up!
This spring would be very telling in what our market will do over the next few years. But if you are looking to make a move to sell this year, right now would be your best chance. Call or Email me to arrange a quick 30-minute chat to see whether it’s right for you right now. Everyone’s priorities and timing are different, and you need to equip yourself with the best and most relevant information for you and your family.
WHAT DOES THIS MEAN TO YOU?
Sellers – Your pricing needs to remain SHARP. Activity is picking up, and Spring is in the air. There is still a lot of supply to compete with, but the buyers are there now. If you have a home to sell, we can sell it. This is probably going to be the best chance you’ll have this year. Give me a call or email, and we can walk through exactly how the process will work. Just make the call, and I’ll do the rest. You will be surprised at what I can do in this market.
Buyers – If you’re searching in the lower price end of your submarket, know what you are looking for, then go and look for it. You still have time on the higher end of the market. But understand that many more Buyers just like you are out shopping now. Make sure your Realtor does a full Comparative Analysis on the property you wish to purchase, so you know what the market value is when you make the offer. I’d be privileged to assist if you are in need of expertise and representation.
Details matter in this market. You have to go in with your eyes wide open. If you need any guidance or assistance, please do reach out and call Alex at 604-374-5534, or simply reply to this email. I look forward to helping you and/or your family and friends with all your Real Estate needs.