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October 2017 – Market Update From Francis Piché



Greater Vancouver Housing Market – Current Statistics for October 2017

Here is a quick summary of what happened in the Vancouver real estate market during the month of October. 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 francis@francispiche.com To view the email I sent to my subscribers, please click here

 

Dear Friends,

Wow…time is truly flying fast! Where did October and November go? I hope you are getting ready for another great holiday season. We are only a little more than 4 weeks away from Xmas!

There is currently a lot of activity in the market. I have been involved in many multiples lately. Just this week, my condo listing in Burnaby received 11 offers (sold 12% over asking). In addition, I had the chance to make a Buyer happy last week who was competing against 3 other buyers in Kitsilano.

The multiples were not only on condos but also on detached homes. Two days ago, another Buyer of mine was trying to get a house in Delta. Unfortunately, the house sold the same night at 12% over asking and we didn’t get it. The good news: we will continue to shop and find a better place 🙂

There are obviously a lot of Buyers that are trying to buy before the new mortgage rule comes into effect in January 2018 and this explains the surge in activity.

The most important thing to remember for the new rule is this: 

Effective January 1, 2018, home buyers who don’t require mortgage insurance — those with a down payment of 20 per cent or more — must qualify for their mortgage at a higher rate (greater of the five-year benchmark rate published by the Bank of Canada or the contractual mortgage rate +2%.)

This new stress test won’t apply to people renewing their uninsured mortgage.

I strongly suggest that you talk to your mortgage specialist and potentially act on your purchase plan before January 1 2018, which is the date when the new rule comes into effect. Read morehere.

On another note, if you are a Seller, I highly recommend having a staging consultation before you put your property on the market. The extra time it takes to get it ready after following the recommendations is well worth it!Once again, my client invested time and money in painting, cleaning, decluttering and external storage…which resulted in amazing pictures, unbelievable traffic during the opens and…like I said earlier, a great number of offers (11) to choose from!

I will repeat this previous insight from last month —> There is a great news here for Buyers:Follow the “7 Tips To Help You Win”  – Scroll down for the winning strategy. The Buyer’s agent of the winning offer (out of 11) worked hard for her client and deserved it. My client (Seller) liked her client’s story and she was the ONLY ONE with a letter to my Seller explaining her personal motivation and desire to get the property.

Lesson here: when you hire the right agent, your chances to win will truly increase!

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Only 5 more weeks! Remember the great contest! Now this is my time to say THANK YOU in a HUGE WAY by doing a generous Referral Contestto YOU my friends and your friends & family! Join the fun and you will be able to be rewarded a minimum of $500 up to $5,000 for each referral!

What’s even better is that you will have a chance to win a $250 Gift Card simply by sharing the contest to your friends and family!

The contest ends on Christmas! Lots of time toGet Your Piece Of The Pie and use the rewards to spoil your loved ones!!! 

***Click below for more details

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***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 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 Referral Contest!

Cheers,

Francis

October Sales Exceed Historical Average
 

 

Metro Vancouver* home sales exceeded typical historical levels in October with the majority concentrated in the townhouse and apartment markets.

Last month’s sales were 15 per cent above the 10-year October sales average.

“Conditions continue to vary significantly based on property type. The detached home market is well supplied with homes for sale, which is relieving pressure on prices,” Jill Oudil, REBGV president said. “It remains a much different story in the townhouse and apartment markets. Buyers of these properties continue to have limited supply to choose from and are seeing upward pressure on prices.”

“The growth in our provincial economy and job market is contributing to today’s demand,” Oudil said. “The federal government’s announcement of plans to tighten mortgage requirements for the seventh time in the last eight years also helped spur activity in the short term. Many buyers are trying to enter the market before the changes are in place.”

October’s Statistics

 

Number of Sales: 3,022 or a 35.3% increase compared to October 2016 when 2,233 home sold, and an increase of 7.1 per cent compared to September 2017 when 2,821 homes sold. Sales of detached properties in October 2017 reached 940, an increase of 44.2 per cent from October 2016 when 652 homes sold. Sales of apartment properties reached 1,532 in October 2017, an increase of 30.1 per cent compared to the 1,178 sales in October 2016. Last month’s sales were 15 per cent above the 10-year October sales average.

Percent of Original List Price Received at Sales: 99% vs 99.4% last month.

Sales-to-Active-Listings Ratio: For all property types, the sales-to-active listings ratio for October 2017 is 33.1 per cent. By property type, the ratio is 16.8 per cent for detached homes, 44.8 per cent for Townhomes, and 66 per cent for condominiums. A seller’s market typically occurs when this ratio exceeds 20 per cent for a sustained period of time.

Total Inventory: 9,137 a 0.1 per cent decrease compared to October 2016 (9,143) and a 3.5 per cent decrease compared to September 2017 (9,466). There were 4,539 homes listed for sale listing in Metro Vancouver last month. This represents an increase of 14 per cent compared to the 3,981 units listed in October 2016 and a 15.6 per cent increase compared to September 2017 when 5,375 properties were listed.

Benchmark Price: $1,037,300. This represents a 10.6 per cent increase over September 2016 and a 0.7 per cent increase compared to August 2017. The benchmark price for detached properties is $1,609,600. This represents a 4 per cent increase over the last 12 months and a 0.5 per cent decrease compared to September 2017. The benchmark price for condos is $642,000. This represents a 22.7 per cent increase over the past 12 months and a 1 per cent increase compared to September 2017.

Median Days on Market: 13 days vs 12 days last month. 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 10 days for the last three months. For more information about your neighbourhoods’ sales and price statistics, I strongly encourage you to download the latest SnapStats Report.

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Francis Piché
421 Pacific Street
Vancouver, BC V6Z 2P5

Cell: 778-558-9948
Office: 604-685-5951
Email: francis@francispiche.com

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