Greater Vancouver Housing Market – Current Statistics for May 2017
Here is a quick summary of what happened in the Vancouver real estate market during the month of May. 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
The month of May was very active and very hot. The market was mainly driven by sales of Condos and Townhomes.
It is crucial for all Buyers to position themselves to win. Here are 9 very effective strategies that you may want to follow:
1) Obtain a mortgage approval before you start making offers.
2) Work diligently with your mortgage specialist to remove Subject to Financing in couple days vs 5-6 days if you need to use that condition in your offer.
3) Do a pre-inspection or full-inspection before the offer. Agents are willing to open the doors before the offer deadline.
4) Bring your draft deposit with you when you make an offer (even if you still have subject to financing). It shows a lot of commitment to get the deal done.
5) Increase your deposit to show that you have skin in the game. Typically people have a 5% deposit. Can you increase it to 10% to stand out vs other offers?
6) Ask your Real Estate agent to present your offer in person.
7) Be onsite with your Real Estate agent when he or she makes the presentation. The Seller might want to connect with you since you are nearby.
8) Send a compelling letter to the Seller, including your profile, motivation to buy, the specific aspects of the home that you really love and some pictures of you, partner, members of your family and your pet(s). ***This strategy is probably one of the strongest as it appeals to the Seller emotionally.
9) Hire a Real Estate agent who is a professional negotiator and presenter!!!
I hope that those strategies are useful to you. It definitely helped many of my Buyers to separate themselves from the crowd and win their dream home this year. Connect with me if you wish to chat and get some extra tools.
Last month’s sales were 23.7 per cent above the 10-year May sales average and is the third-largest selling May on record.
The sales-to-active listing ratio for Townhomes and Condos clearly surpassed the sales-to-active ratio for Detached homes.
We have seen a healthy increase of listings in May vs April. The inventory level is still below what we have seen in May 2016.
The Condo and Townhome prices are rising up faster than the other products in the market with an increase of 18% (Townhomes) and 13% (Condos) compared to 3% for the Detached homes.
The overall price increase is reflected below.
***It is very important to pay attention to local market trends as they tend to be VERY different. Look at the SnapStats Report and consult your realtor to establish the best winning strategies either for selling or buying. The SnapStats Report is a phenomenal report that you can consult for free to get familiar with the latest trends. Download the SnapStats Report here.
If you are interested in how much a much a mortgage will cost you ‘upfront’ and ‘monthly’, check out the “Mortgage Tool”. Try playing around with the size of your downpayment to see how it will affect your monthly costs.
If you are looking to invest, please have a look at the “Investor Tool”. Use the interactive toggles on the left to see how changes to the purchase price, down payment size, and rent all affect your monthly cash flow. Will your property be cash flow positive? Remember that you can download every calculation you make to excel in the ‘Summary’ tab.
If you have any questions, please send me an email and I would be happy to help you for your Buying or Selling needs.
Watch the Real Estate Board of Greater Vancouver video below for the overall monthly summary or get the market speed for your home in your neighborhood with Market Speedo and the SnapStats report.
Once again, for the ones that like to read, simply scroll down below for the market summary.
Happy read, happy watch and Happy Canada Day!
Home buyer activity returned to near record levels across the Metro Vancouver housing market in May.
“Home buyers are beginning to have more selection to choose from in the detached market, but the number of condominiums for sale continues to decline,” Oudil said.
“Demand for condominiums and townhomes is driving today’s activity, ” Jill Oudil, Real Estate Board of Greater Vancouver (REBGV) president said. “First-time buyers and people looking to downsize from their single-family homes are both competing for these two types of housing.
“While sales are inching closer to the record-breaking pace of 2016, the market itself looks different. Sales last year were driven by demand for single-family homes. This year, it’s clear that townhomes and condominiums are leading the way,” said Oudil. “It’s important to work with your local REALTOR® to understand the different factors affecting the market today.”
Percent of Original List Price Received at Sales: 100% for the past two months vs 98.4% in January 2017.
Sales-to-Active-Listings Ratio: 50.3% vs 53% in May 2016 and 61% in March 2016. The Sales-to-Active-Listings Ratio was 19% in January 2017. A seller’s market typically occurs when this ratio exceeds 20 per cent for a sustained period of time. ***The Sales Ratio in April 2017 was 72% in Downtown Vancouver and 20% in Vancouver Westside for the Detached Home Market. The Sales Ratio for the Detached Home Market in New Westminster was 49%, one of the highest Sales Ratio in the region. Port Coquitlam and Maple Ridge were the winners at 76% followed by North Vancouver and Coquitlam at 45% and Port Moody at 43%. Pitt Meadows had a 91% ratio with a total of 22 properties sold in April.
Total Inventory: 8,168 a 5.7 per cent increase compared to May 2016 (7,776), and a 4.5 per cent increase compared to April 2017 (7,813). There were 6,044 homes listed for sale listing in Metro Vancouver last month. This represents a decrease of 3.9 per cent compared to the 6,289 units listed in May 2016 and a 23.2 per cent increase compared to April 2017 when 4,907 properties were listed.
Benchmark Price: $967,500. This represents a 8.8 per cent increase over May 2016 and a 2.8 per cent increase compared to April 2017. The benchmark price for detached properties is $1,561,000. This represents a 3.1 per cent increase over the last 12 months and a 2.9 per cent increase compared to April 2017. The benchmark price for condos is $571,300. This represents a 17.8 per cent increase over the past 12 months and a 3.1 per cent increase compared to April 2017.
Median Days on Market: 10 days vs 11 days for April and March 2017. The median Days on Market in January 2017 was 22 days. If we take a closer look at Downtown Vancouver, the Median Days on Market was 8 days vs 9 days in April and March. For more information about your neighbourhoods’ sales and price statistics, I strongly encourage you to download the latest SnapStats Report.