Happy Lunar New Year East Van! I hope the Year of the Tiger brings great things for you and your family.
Boy, did things pick up in January! I expected the market to be busy, but WOW.
We are seeing multiple offers on everything, and record breaking prices on a lot of properties. It’s really tough to value properties these days – you can barely use the recent sales in the building as a gauge because the market has increased so quickly, and everything seems to be selling for a much higher price than anticipated. Expect to be very competitive when it comes to your offer and price. And don’t get caught up in how much a unit sells for over its asking price – units are often listed artificially low to bring in multiples, so when they sell for a lot more, that was by design. Sometimes they sell for what seems to be too much, but that is the current market.
For those of you that own investment properties, or those of you that own in questionable buildings, now is a great time to consider selling.
The market feels like it could be in a period of flux right now. I don’t anticipate the Spring market to be any slower, but I’ll be curious to see what happens in the Fall, after what I expect to be a slow summer. I think there are still too many buyers out there for the market to die but another few months of continued price increases will have its affect on potential buyers – both financially and emotionally.
Interest rates are expected to increase 0.25 in March and likely 1% in total by the end of the year. Not only should you lock in a rate now, but these anticipated interest rate is going to lead people to try to secure a home soon, because if interest rates rise and they are purchasing at the top of their budget, they will be priced out of the market for the type of property they’re looking for, which is especially important for Buyers who already own a 2 bedroom and are looking to break into the 3+ bed market (whether townhouses or detached). This may lead to Buyers either leaving the city or sticking it out in their current property for a few more years.
If you’re thinking about selling your property, give me a call to chat about value, pricing strategy and the sale process. There are plenty of details to chat about – including timing, value, staging and your potential purchase – so don’t hesitate to contact me if you’d like to get started [email protected] or 778-387-7371. How an agent handles a multiple offer situation as you listing agent can be critical in ensuring you get good offers that are in your best interest. There is a finesse to dealing with multiple offers as both a listing agent and buyer’s agent, so make sure you’re working with good agents.
Onto the stats:
HPI Price increased again this past month – we’re up to $1,805,000 for detached houses ($35k over last month), $1,053,000 for townhouses ($30k drop compared to last month), and $650,100 for condos ($3k increase over last month).
Overall, the number of new listings effectively doubled for each market, though the amount of inventory was somewhat stagnant, only because all of those new listings were snapped up really quickly.
The sales to active ratio has been really high: 18% for houses, 57% for townhouses, 52% for 2 bedroom condos and 64% for 1 bedroom condos – some REALLY strong numbers for this time of year, though I will say that the detached house percentage is skewed, likely by land assemblies and just terrible tear downs. Anything livable and in good shape is flying off the shelves.
Here are some snippets from the Real Estate Board’s monthly update:
“Our listing inventory on MLS® is less than half of what would be optimal to begin the year. As a result, hopeful home buyers have limited choice in the market today. This trend is causing fierce competition for a scarce number of homes for sale, which, in turn, increases prices,” Keith Stewart, REBGV economist said.
For all property types, the sales-to-active listings ratio for January 2022 is 40.3 per cent. By property type, the ratio is 28 per cent for detached homes, 51.6 per cent for townhomes, and 49.7 per cent for apartments. Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
Sales of detached homes in Metro Vancouver in January 2022 reached 622, a 15.9 per cent decrease from the 740 detached sales recorded in January 2021. The benchmark price for a detached home is $1,953,000. This represents a 22.7 per cent increase from January 2021 and a 2.2 per cent increase compared to December 2021.
Sales of apartments in Metro Vancouver reached 1,315 in January 2022, a 10 per cent increase compared to the 1,195 sales in January 2021. The benchmark price of an apartment property is $775,700. This represents a 14 per cent increase from January 2021 and a 1.8 per cent increase compared to December 2021.
Townhome sales in Metro Vancouver in January 2022 totalled 348, a 23.3 per cent decrease compared to the 454 sales in January 2021. The benchmark price of an attached home is $1,029,500. This represents a 24.3 per cent increase from January 2021 and a 2.5 per cent increase compared to December 2021.
East Vancouver Real Estate Stats up to and including January 2022
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
If you have any questions – regardless of how simple – don’t hesitate to send me an email or give me a call: [email protected] or 778-387-7371.
Now is a great time to check in with your mortgage broker about your existing pre-approval considering that rates are likely going up. My preferred mortgage brokers have been great about detailing the difference between fixed and variable rates and how you may be better off going variable, so if you’re looking for a mortgage broker, please ask for a referral! Having a thoughtful, organized broker can make a big difference in a multiple offer situation, and knowing where you stand from a financial perspective now can give you sometime to improve your file to be ready for the Spring market.
As always, if you need anything, let me know! I’m always happy to help.