Greater Vancouver Housing Market – Current Statistics for November 2014
Here is a quick summary of what happened in the Vancouver real estate market during the month of November. 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
Bonjour dear friends!
Christmas is at the door! Can you believe it? I felt the month of November and December just flew by. What about you?
The Real Estate market, as usual, is one of our favorite subjects of discussion in Vancouver. I encourage you to read some of the articles I posted below. You will see that there are some divergent opinions about where the market is going. Is that a surprise?
Will the market crash? Will we experience a soft landing? Will we have a moderate growth next year? I tend to believe that the later statement holds more truth. Things are changing fast. Just think about the drop of the oil price as an example. Moreover, the Real Estate market is extremely local. The market performance depends on various factors such as the location, type of products (detached, townhouse or condo), interest rates, governmental regulations, employment rate, consumer sentiment etc.
Are you a proponent for a crash, a soft landing or a steady Real Estate performance theory? How does it feel to be in a declining market? Can you find any opportunities for it at all? If you are a Buyer, you tend to have more time to find the perfect home at a better price. What about the Sellers? Well, if you Sell and Buy, it could be an opportunity to upgrade to a bigger house at a lower price. Your savings will usually offset the “loss” you have on the sale of your house. Imagine, you “loose” 10% on $500,000 ($5,000) and save 10% on your $800,000 home purchase ($8,000); the end results is a positive $3,000 in your pocket.
In a rising market such as what we experienced in 2014, the Sellers were happy. If those same Sellers were also Buyers, they most probably found that it was more difficult to find the dream home, especially when they were involved in a bidding war. The bidding wars could be very emotional for Buyers, which tends to accelerate the inflation on prices.
The actual sales-ratio is currently at 19.5%, an indicator of a Balanced Market, which means there are opportunities for Buyers and Sellers. Keep in mind that location and the type of housing have a huge impact on the selling ratio metric.
When you are considering Selling or Buying Real Estate, I believe that the motivation to transact is the most important element. Do you want to live in a bigger place? Do you want to get closer to work? What lifestyle are you looking for? Do you want to raise your own wealth and stop paying a rent to your landlord? Do you want to simplify your life by downsizing to a luxurious condo from you’re a bigger home and travel all around the world? The choice is yours and your purpose in life will define your actions.
What is my conclusion? I know one thing; the Real Estate market is cyclical and tends to always increase in the long run. There are always opportunities to Buy or Sell despite the general market conditions. The population will grow. Vancouver is an amazing city that is considered as an emerging super-prime housing market competing with other big cities in the world. Worst-case scenario, I can only expect a soft landing in some areas. If you don’t believe me, just ask the economists; they seem to all have the same opinions about it? 😉 haha
Now enjoy the stats!
Home Buyers in Metro Vancouver remained active in November, a month that is traditionally a quieter time of year for real estate.
“It’s been a more active fall than we typically see in the Metro Vancouver housing market,” Ray Harris, REBGV president said. “Home prices across the region have experienced steady gains in 2014 of between three and seven per cent depending on property type.”
“Economists from the BC Real Estate Associations (BCREA), Canada Mortgage and Housing Corporation (CHMC) and Central 1 Credit Union agree that the market is well positioned to stay steady moving forward. All of these institutions are projecting a minimal fluctuation in home prices and sales in 2015. Homes prices are expecting to increase between 1% and 2% over the year. Interest rates are expected to remain low in 2015 but rise slightly compared to current levels. Most projections also anticipate between 30,000 and 35,000 new residents moving to Metro Vancouver in the coming year. Expect this activity to contribute to market demand in the year ahead.” Dan Morrison REBGV Vice-President said.
Number of Sales: 2,516 or 8.4% increase compared to 2,321 sales recorded in November 2013, and a 17.7 per cent decline compared to the 3.057 sales in October 2014. Last month’s sales were up 6.9% above the 10-year sales average for November.
Percent of Original List Price Received at Sales: 96.3%, which is 1.1% higher than November 2013 at 95.2%.
Sales-to-Active-Listings Ratio: 19.5%. 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: 12,553, a decline of 10.2% compared to this time last year, and a 9.4% decrease compared to October 2014. There were 3,016 homes listed for sale listing in Greater Vancouver last month, a decrease of 7.1% compared to November 2013 and a 32.8% decline from 4,487 new listings in October 2014. *** “This is traditionally a low inventory time of year, so it’s a good time to list your home for sale if you want to face less competition in the marketplace,” Harris said.
Benchmark Price: $637,300, an increase of 5.7% over November 2013. Detached homes prices increased 7.9% from November 2013 to $997,800 and condos increased by 4.8% over the last year to $480,200.
Average Days on Market: 56 days vs 62 days in November 2013. If we take a closer look at Downtown, the average Days on Market was 29 days in November 2014 vs 22 days in October 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 ower 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
Fed Promises ‘Patient’ Approach In Determining When To Raise Interest Rates
The Federal Reserve is edging closer to raising interest rates from record lows given a strengthening U.S. economy. But it will be “patient” in deciding when to do so. Read more
Real Estate, High Debt, Bad Loans The Start Of A Financial Crisis
Real estate value in Canada may be overvalued by as much as thirty per cent. (CBC) Read more
CMHC To Hike Issuer Fees And Mortgage Rates Could Follow
Canada Mortgage and Housing Corp. is tripling the fee it charges some financial institutions to guarantee loans in the mortgage-backed securities market, a move that could end up costing consumers more. Read more
Face It, Canada’s Housing Market Could Fall Like Oil: Don Pittis
Recent reassuring comments about the Canadian housing market remind me of similar blandishments when oil prices began to fall. Read more
Houses Might Not Be As Overvalued As The Bank of Canada Thinks, Moody’s Report Suggests
A new report from Moody’s Analytics suggests the Canadian housing market has seen some “structural changes” that might justify today’s prices Read more
What Bubble? Renters Underpin Toronto, Vancouver Condo Markets
Economists at the bank said in a new research note that while new condos in Toronto and Vancouver are plentiful, so too are tenants. Read more
Real Estate Delivers Value, Any Way You Slice It
Over the past two years RealNet Canada Inc. has offered a helpful analysis of the long-term value of investment properties in Metro Vancouver. Read more
Canada’s Economy to Benefit From Broader Export Demand In 2015: RBC Economics
Canada’s economy is expected to see higher export growth in 2015, despite the recent decline in oil prices, according to the latest Economic and Financial Market Outlook issued today by RBC Economics. Read more
Vancouver Housing Sale Prices To Grow 3% In 2015
Continuing the trend of rising home sale prices in the Lower Mainland, prices are expected to keep growing in 2015. Read more
The Future of Housing Occupancy: Vancouver CMA
Vancouver CMA is projected to grow by 1.05 million people over the next 28 years. Read more
The Most Popular Kitchen Storage Ideas of 2014
Of all the kitchen storage photos uploaded to Houzz this year, these 14 were tops. Which will you save to your kitchen ideabook? Read more
7 Keep-Tidy Tips for Compact Entryways
Banish the clutter — and the last-minute search for keys — with these ideas for organizing your entry Read more
Want to Know What Is Your Home Worth? Curious About Your Neighbor’s Recent Home Sold Price?
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! 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!
SNAPSTATS REPORT – NEW BONUS REPORT!
Get the SnapStats report and discover the specific trends in your neighborhood for Vancouver Downtown, Vancouver Westside, Vancouver Eastside, North Vancouver, West Vancouver and Richmond. The statistics from GRD are also included covering Burnaby, New Westminster, Coquitlam, Port Coquitlam, Port Moody, Pitt Meadows and Maple Ridge. Remember to check the feature “Sale Price SQFT” Feel free to pass along to your friends and family!
BONUS REPORT HERE: Get the Historic Annual Statistics, 2013 Monthly Statistics and 2014 Monthly Statistics.
To access the complete SnapStats report (PDF) for the month of November 2014 & Bonus Report 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