Greater Vancouver Housing Market – Current Statistics for January 2015
Here is a quick summary of what happened in the Vancouver real estate market during the month of January. If you would like a complimentary copy of the complete SnapStats report, including neighborhoods-level sales and price statistics, please give me a call at 778-558-9948 or email me at firstname.lastname@example.org To view the email I sent to my subscribers, please click here
Bonjour dear friends!
Happy Chinese New Year!
The Bank of Canada’s recent announcement to lower its benchmark interest rate was a surprise for many experts and is an important measure that will have an impact for home Buyers, Sellers and Investors.
Today, according to the Daily Market Update from Western Union Business Solutions: “Canadian retail sales on Friday are forecast to fall 0.4% for December. Such a weak reading if realized could see the loonie test recent six-year lows against the U.S. dollar as it would strengthen calls for another Bank of Canada rate cut. The BOC next meets on March 4.”
Ray Harris, REBGV president said: “A reduced rate could allow you to pay down your mortgage a little faster, save some money on your monthly payments, or change the amount you qualify for. It’s important that you do your homework and understand how these announcements impact your situation.”
As usual and for logical reasons, many people fear that the Real Estate market bubble will burst in the Metro Vancouver. According to a Global and Mail article “Influx of New Residents Expected For B.C. Over Next Several Years”: “Most council members (made up of 14 Canadian economists) expect B.C.’s housing market to cool off, with a couple of economists saying that a “soft landing” has occurred in real estate already.”
If the soft-landing has occurred, it is certainly not in Vancouver (please do not confuse with Greater Vancouver) as we witness a steady demand where multiple offer situations occur in the detached home market due to a lack of inventory. I can speak from my own experience; the condo market is also very hot in a lot of areas. My last listing had an accepted offer after 7 days and despite the fact that the offer collapsed a week later, I received 3 offers the day after the first offer was cancelled and it got sold!
Five years go, Vancouver hosted the Olympics and we can still witness the positive repercussions. Vancouver was transformed and inherited an amazing transportation system with the Canada Line connection between Downtown Vancouver and the airport. The Olympics also gave us popular new community facilities in the surrounding areas as well as new Real Estate development for the region.
The point and the matter is that Vancouver is an amazing and a popular city to live in. Vancouver attracts new residents and we can expect the population to grow for many years to come, which means that the Real Estate market will also continue to grow.
I still feel that there are great opportunities to own Real Estate in Vancouver. I personally moved to Vancouver from Montreal eight years ago and I had to make a lifestyle change decision by buying a smaller home for more money! It sounded crazy at the time especially when my living area decreased by more than 50%! I am not suggesting that Buyers and New Home Buyers have to make the same sacrifice as I did but I think we can ask ourselves the following questions: “How much space do I REALLY need to feel REALLY happy at home? How many people in the world have the luxury to live in a place surrounded by mountains and the ocean?
Now enjoy the stats!
The first month of 2015 saw home sale activity above historical norms, while the number of homes listed for sale trended below typical levels.
“While demand remains steady, we’re seeing fewer homes for sale at the moment,” Ray Harris, REBGV president, said. “This is creating greater competition amongst buyers, particularly in the detached home market. The number of detached homes listed for sale today is the second lowest we’ve seen in four years.”
Number of Sales: 1,913 or 8.7% increase compared to 1,760 sales recorded in January 2014, and a 9.6 per cent decline compared to the 2,116 sales in December 2014.
Percent of Original List Price Received at Sales: 96.9%, which is 1.4% higher than January 2014 at 95.5%.
Sales-to-Active-Listings Ratio: 17.2%. 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. The ratio was at 13.3% in January 2014.
Total Inventory: 10,811, a decline of 14.2% compared to this time last year, and a 4.8% increase compared to December 2014. There were 4,737 homes listed for sale listing in Metro Vancouver last month, a decrease of 11.4% compared to January 2014 and a 4.8% decline compared to December 2014. *** List your home for sale now if you want to face less competition in the marketplace! The law of Supply and Demand will prevail and affect the pricing.
Benchmark Price: $641,600, an increase of 5.5% over January 2014. Detached homes prices increased 8.4% from January 2014 to $1,010,000 and condos increased by 2.5% over the last year to $382,800.
Average Days on Market: 60 days and stayed the same as December 2014. If we take a closer look at Downtown Vancouver, the average Days on Market was 29 days in January 2015 vs 30 days in December 2014. 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 building 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.
REAL ESTATE & ECONOMIC NEWS | HOME & DESIGN
Greater Vancouver Home Sales Prices Slip As Number Of Sales Increase: CREA
Despite a 5.7% increase in home unit sales, the average selling price fell across Greater Vancouver. Read more
Influx of New Residents Expected For B.C. Over Next Several Years
British Columbia’s economy is expected to get a lift over the next several years from an influx of new residents, helping fill job vacancies and spurring demand for housing. Read more
Olympics Enhanced Vancouver’s Cosmopolitan Character
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Business Owners Say No To Transit Tax: CFIB Poll
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New Program To Lure Asian Headquarters To Vancouver
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Room of the Day: A His-and-Hers Office They Both Want to Use
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WANT TO KNOW WHAT IS YOUR HOME WORTH?
I have great news for you! It’s a new resource that I can share with you called Market Snapshot. No need to collect Just Sold or Just Listed Direct Mail pieces anymore! With Market Snapshot, you will be able to research the local housing market conditions just like a Realtor. Get exclusive access to live market activity and statistics such as sold homes, properties for sale, inventory and days-on-market trends. To view what it looks like, click here! Call or email me and I will set it up for you.
HOW TO SELL YOUR HOME FAST & USE SNAPSTATS?
Price it right! As I previously mentioned in my newsletters of the past few months, a well-priced property is the most effective can sell really fast. I constantly used the SnapStats report to check the Price Band Sales Ratios of the homes listed in the market as well as the Sales Ratio of the neighborhoods because it helps Sellers and Buyers identify the price pressure of the properties they want to Sell or Buy.
It is in my own opinion 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.
The best way to understand your local market trends and get your home sold is to contact your Real Estate agent. Vancouver is a great Real Estate market with Buyers ready to buy. Thinking of selling? Don’t wait, contact me and sell it now!
GET YOUR SNAPSTATS REPORT
Not only you get the SnapStats report (PDF) on Metro Vancouver which includes Vancouver Downtown, Vancouver Westside, Vancouver Eastside, North Vancouver, West Vancouver and Richmond but also, you get statistics from Greater Vancouver 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!
Click on SnapStats report (PDF) to access your complimentary report for the month of January 2015 for your specific neighborhood and area.
How to Read The Report? The SnapStats report will give valuable information and the answer the following questions:
***Sales Ratio over 21% is considered a Seller Market
***Sales Ratio of below 14% is officially a Buyer market