G’day East Van! I hope everyone has survived Snowstorm 2019 (RIP daffodils).
I’ll get right into it… things are happening! There have been some changes in the mortgage world benefiting Buyers and a more active real estate market as well.
We’re looking at a balanced market right now.. good for Buyers and Sellers. There are a lot of good properties the market thanks to an expected increase in inventory and some hesitant Buyers. Inventory is slowing increasing giving Buyers a few more options, so Buyers are taking advantage of the opportunity to take their time to find a property, submit conditional offers and negotiate with Sellers.
Sellers have to be priced reasonably from the get go in order to elicit Buyers, otherwise your days on market will be high because Buyers won’t bother trying to negotiate, forcing you to finally lower your price. However, Buyers are still keen on reasonable priced properties, and why not, prices have softened slightly over the last few years and interest rates are holding steady, if not, dropping, before an expected increase over time (giving Buyers a chance to lock in at a good rate). I’ve seen quite a few multiple offer situations this year, on everything from 1 bedroom condos to houses. The offers don’t reach extremes with price but it shows that if you’re priced right and show well, Buyers will be there.
For those buying and selling, remember that you need to focus on the overall change in value of your purchase and sale, not the fact that your current property may not be worth as much as it was before. It’s more than likely that the more expensive property that you’re looking to move up too has dropped a bit more in value, make this a good time to make the jump.
Prices can still vary significantly, so don’t let that stop you from looking at a particular property (within reason, of course). A lot of properties are priced high because the Seller has built in a bit of a negotiation buffer, some properties are priced reasonably, and like I mentioned, I’ve seen a few low priced properties receive multiple offers. Do your due diligence, check out the comparable listings and sales, and start submitting offers. You’ll never know if a Seller is keen to sell until you get an offer in front of them.
Here are the latest Real Estate stats for East Van. Keep in mind that these stats represent January, which was slow for the first 2 weeks. I imagine the February numbers to really show the uptick in activity.
As always, talk to a mortgage broker if you haven’t yet. Interest rates are changing soy can lock in a good rate (which can be decreased if rates go down, but won’t increase if rates go up during that time frame).
If you want a more detailed view into the market you’re buying or selling in, give us a call: [email protected] or 778-387-7371. These numbers only tell a small part of the story.
EAST VAN CONDO MARKET UPDATE
The East Van condo market is chugging along given the current market conditions. The sales active ratio is 19% for 1 bedroom condos and 11% for 2 bedroom condos, which are both indicated of a balanced market, if not a buyers market for 2 bedroom condos.
I’m seeing what feels a bit like a logjam with this market where if first time home buyers don’t buy the 1 bedroom condos, then the 1 bedroom owners can’t move up to a 2 bedroom and the 2 bedroom owners can’t move up to a townhouse or house. Interest rates dropping definitely help first time buyers who have to face the stress test, and prices have softened enough that there are some deals out there.
Average prices saw a slight uptick since December. Total inventory dropped significantly since last fall but it’s still higher than it has been compared to the last few years. I expect inventory numbers to keep increasing through the Spring, so there should be a lot of good options, keeping the market balanced for Buyers and Sellers. Average days on market is 44 days for 1 bed condos, 42 days for 2 bed condos and 58 days for 3 bed East Van condos.
EAST VAN TOWNHOUSE MARKET UPDATE
The East Van townhouse markets showing only a 5% sales to active ratio for 2 bedroom units and a 14% sales to active ratio for 3 bedroom units. The average sales price has been dropping for 2 bedroom townhouses in East Van and has been up and down for 3 bedroom townhouses (though keep in mind this market features cheaper leasehold units in South Van on one side and newer higher end 3 bedroom townhouses close to downtown). The average days on market is 74 days for 2 bedroom condos and 25 days for 3 bedroom condos in East Van.
EAST VAN DETACHED HOUSE MARKET UPDATE
The East Van detached house market remains slow, but the stats don’t tell the whole picture. Entry level detached houses in East Van, as long as they’re well maintained and have a mortgage helper, are still finding buyers, but houses in disrepair or are on the top end of the market are slow to move. The sales to active ratio is at 8% and inventory numbers are been fairly steady since 2017. Prices have also remained fairly steady in mid 2018. Days on Market averaged 53 days for re-sale properties.
January didn’t have any new construction detached house sales in East Vancouver.