Here is a quick summary of what happened in the Vancouver real estate market during the month of December. If you would like a complimentary copy of the complete report, including neighborhoods-level sales and price statistics, please give me a call at 778-558-9948 or email me at email@example.com.
Happy New Year Dear Friends!
Number of Sales: 1,953 or 71% increase compared to 1,142 sales recorded in December 2012. December had 15.9% decline in sales compared to the 2,321 sales in November 2013. Last month’s sales were 8.1% below 10-year December average.
Percent of Original List Price Received at Sales: 95.2%, which is 1.8% higher than December 2012 at 93.5%.
Sales-to-Active-Listings Ratio: 18.4%, which is consistent with a balanced market condition and a great improvement vs a Buyer market condition with 9.5% in December 2012. This is the 10th consecutive month over 15%. An upward pressure on price occurs when the sales-to-active-listings ratio is around 20-22% in a particular community for a sustained period of time.
Total Inventory: 10,702, a decline of 11.2% compared to this time last year, and a decline of 27.8% decline compared to November 2013. There were 1,856 homes listed for sale listing in Greater Vancouver last month, an increase of 34.5% compared to December 2012 and 42.8% decline compared to November 2013.
Average Days on Market: 66 days vs 70 days in December 2012. If we take a closer look at Downtown, the average days on market was 42 days vs 33 days in November 2013. As you see, the stats vary from market to market and even from neighborhood to neighborhood. Furthermore, a condo tower can reflect different market status vs another tower as each building is a neighborhood in itself. For more information about your neighborhoods-level sales and price statistics, I strongly encourage you to download the latest SnapStats Report.
“Home sales quietly improved last year compared to 2012, although the volume of activity didn’t compare to some of the record-breaking years we experienced over the last decade,” Sandra Wyant, REBGV president said.
In summary, the sales in 2013 were 14% higher than 2012 and 11.9% lower than 2011. Last year total sales ranked as the third lowest annual total in the last 10 years. On the supply side, the number of listings were 6.2% lower in listings vs 2012 and on par with 10 year average. The Sales-to-Active Listing ratio ended in December with 16.9%, which is consistent with balanced market condition.
With balanced market condition, home prices were able to remain steady with a modest increase over the last twelve months. The benchmark price rose 2.1%, which erased the home price decline of 2.3% we experienced between 2011 and 2012. Some of the largest home price increases in 2013 occurred in the Detached Home markets of West Vancouver (+8%), Port Moody (+5.4%), Vancouver West (+5%) and Vancouver East (+4.6%).
When reviewing home prices, it is critical to consult your Realtor as the conditions of the market change based on the municipality and property types.
“After a really poor start to (2013), as we go into this year I expect to see a little more stability,” said Bryan Yu, an economist for Central 1 Credit Union. “You’re not going to see the volatility we saw last year, though there will be a slight drop off in momentum into the first quarter (of 2014).”
Central 1 Credit Union’s forecast is estimating 7% increase in total home sales compared to 2013. For 2014, Central 1 Credit Union’s forecast is for prices to edge up about 1.5 per cent.
Shifts in 2014 Real Estate prices will also be influenced by the types of properties people are buying, with lower-priced townhouses and condominiums expected to make up a bigger share of the market, according to Lance Jakubec, a senior market analyst for Canada Mortgage and Housing Corp.
From what I have experienced in the market place, a well-priced property can sell really fast. A property I listed on November 28, 2013 sold in 21 days, compared to the average 72 days turn around in the same building. In my opinion, it is important to know your competition and the type of market for your designated property (either a buyer, balanced or seller market). These factors will help you analyze the sales ratio by area, neighborhood and price range. Vancouver buyers are smart and savvy, so an overpriced property can sit on the market for a long time, and in turn be detrimental to the final sale value. The longer it sits on the market, the more stigmas it will incur, hence more price decreases, etc.
As a result, I would like to advise all my clients to be as close as possible to the estimated or fair Market Value in order to generate the maximum interest possible. A multiple offer situation generates a lot of good energy around the sale property where buyers can compete by having somewhat of a bidding war…how fun is that!? Other factors to consider when strategizing price are the motivation of the seller, condition of the property, location, current and future growth of the neighborhood, and comparable properties on the market.
In conclusion, what I’m trying to say is that PRICING is the most important factor in selling your property. No matter what time of year you want to sell, as long as your home is priced well, it should sell. A certain season will not sell your home quicker. The longer you wait, keep in mind that you will also have more competition. The inventory of homes is currently low and Vancouver is a great Real Estate market with Buyers ready to buy. Thinking of selling in the spring? Don’t wait, sell it now.
Not only you get the SnapStats report on Vancouver Downtown, Vancouver Westside, Vancouver Eastside, North Vancouver, West Vancouver and Richmond but also NOW starting this month, you will get statistics from GRD including Burnaby, New Westminster, Coquitlam, Port Coquitlam, Port Moody, Pitt Meadows and Maple Ridge. Also, check out the new feature “Sale Price SQFT” Feel free to pass along to your friends and family!
To access the complete SnapStats report (PDF) for the month of December 2013 for your specific neighborhood and area, please give me a call at 778-558-9948 or email me at firstname.lastname@example.org
How to Read The Report? The SnapStats report will give valuable information and the answer the following questions:
– What is the sales ratio of where I live or where I want to live?***
– What is the trend on inventory, price and number of sold properties for the last 13 months?
– Who can help me better determine my market value and help me use SnapsStats to my advantage? FRANCIS!
***Sales Ratio over 21% is considered a Seller Market
***Sales Ratio of below 14% is officially a Buyer market