Happy New Year East Van!
I’ll keep this review short since the market will be all about what happens next.
Inventory has remained low, though in the grand scheme of things, inventory wasn’t at all time lows this past year despite feeling like it was – it was that was at an all time high. We will need to see a huge influx in inventory to curb the demand out there, and unfortunately I don’t see any inclination that we will see that needed increase in inventory. I have a handful of clients who will be listing their house for sale, but they will be buying as well, so we end up with a zero sum game. Many won’t sell until they buy, so the question becomes how long will it take them to buy?
Interest rates were expected to rise this year, though with the new strain of Covid leading to more restrictions, I don’t anticipate interest rates to rise as much or as quickly as we originally thought. With interest rates remaining low, you know there will be Buyers out there trying to take advantage of low rates given the increase in prices.
Multiple Offers are still common across all products and neighbourhoods, so you have to be willing to compete if you’re interesting in buying. There was a house in Burnaby that received 43 offers just after Christmas, if you can believe it, and it wasn’t priced obscenely low. Every now and then a property doesn’t receive any offers because it was priced too high, so if you can’t be competitive for some reason, look to these properties as your opportunity to submit a conditional offer.
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.
Onto the stats:
HPI Price increased again this past month – we’re up to $1,770,000 for detached houses (14.5% increase over the last 12 months and 1.45% over last month), $1,085,000 for townhouses (21% increase over the last 12 months and 1.41% over last month), and $647,600 for condos (8.8% over the last 12 months and 1.25% over last month).
Inventory and the number of new listings dropped considerably, though that was expected given the holidays. It will slowly increase as we get into the New Year, often starting with re-lists of older properties.
The sales to active ratio has been really high: 29% for houses, 71% for townhouses, 47% for 2 bedroom condos and 93% for 1 bedroom condos – some REALLY strong numbers for this time of year.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 43,999 in 2021, a 42.2 per cent increase from the 30,944 sales recorded in 2020, a 73.6 per cent increase from the 25,351 homes sold in 2019, and a four per cent increase over the previous all-time sales record of 42,326 set in 2015.
Last year’s sales total was 33.4 per cent above the 10-year sales average.
“Home has been a focus for residents throughout the pandemic. With low interest rates, increased household savings, more flexible work arrangements, and higher home prices than ever before, Metro Vancouverites, in record numbers, are assessing their housing needs and options,” Keith Stewart, REBGV economist said.
Home listings on the Multiple Listing Service® (MLS®) in Metro Vancouver reached 62,265 in 2021. This is a 14.7 per cent increase compared to the 54,305 homes listed in 2020 and a 19.9 per cent increase compared to the 51,918 homes listed in 2019.
Last year’s listings total was 11 per cent above the 10-year average.
“While steady, home listing activity didn’t keep pace with the record demand we saw throughout 2021. This imbalance caused residential home prices to rise over the past 12 months,” Stewart said.
East Vancouver Real Estate Stats up to and including December 2021
*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 the sale, 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.
I hope you’re getting out to enjoy this Winter Paradise. If you have any questions as you start thinking about your real estate goals for this year, don’t hesitate to ask.