Hi Everyone! Summer is here! I know everyone is out enjoying their summer because my phone hasn’t been ringing as much as it was before the great weather started. I hope you’re getting out to enjoy our beautiful province and the plethora of patios we’re seeing pop up everywhere.
The East Van real estate market has slowed down as I expected this month. It happens every August when everyone would rather spend their weekends camping or swimming than going from condo to condo. I’m still getting a lot of showing requests, but those are often from serious Buyers who have been looking for something specific. I’m starting to see the number of multiple offer situations decrease though it is situational, and units are still selling quickly, despite not getting multiples! If you price your property particularly low to get multiple offers, it’ll happen, but if you price your property above it’s value to give yourself room to negotiate, you likely won’t get multiples. How the property shows and the quality of the building come into play with pricing strategy too.
A lot of people were expecting an influx of rental units for sale once the Government lifted the moratorium on evictions but we didn’t see it. The vacancy rate is still quote low so the rental market is strong enough that most landlords see the value in keeping their property.
Interest rates are still quite low, generally hovering around 2.1% and I don’t expect to see any major changes in the mortgage world while the world is still recovering from the economic effects of the pandemic. Mortgage lenders are being a little more strict on qualification, but it shouldn’t affect most Buyers. Those who are self employed, temporarily laid off, or with an atypical situation may have a harder time getting financing.
Otherwise, keep your eyes peeled on the new listings and don’t hesitate to send me any questions you may have. If you’re thinking about listing your property soon, get in touch so we can chat about timing and what we can do to make the sale as successful as possible. I expect the market to pick up again in September with new listings and continued interest from Buyers, so keep your eyes on the market and spend the time learning about your options.
Onto the stats.
The HPI Price increased for detached houses and remained steady for condos and townhouses. Detached houses saw the biggest drop when the market slowed down in 2019 so I’m not surprised we’re seeing the biggest increase now.
We did see a slight increase in inventory for condos and townhouses last month but it’s the difference compared to last year that’s more interesting – last month there were 58% more condo listings, 93% more townhouses and 23% more houses for sale than this time last year. The market is a lot stronger than last year and overall, inventory numbers last year were particularly slow. Condo and townhouse inventory is effectively at the highest levels we’ve seen in the last 5 years, whereas detached house inventory is still quite low compared to its highest levels. The number of sales are also up – we’re seeing 23% more condo sales, 21% more townhouse sales and 36% more house sales now compared to this time last year.
The sales to active ratio for each market are hovering around 30% which is indicative of a Seller’s market, something the activity in the market currently supports.
East Vancouver Real Estate Stats up to and including July 2020
If you want to chat through your options, best path forward and the intricacies of the market, let me know! I’m happy to jump on a call to get you started. It takes some finesse to handle a buy and sell, so make sure you know your options before jumping in. If you’d like to slowly dip your toes in the market, I can also set you up on a Custom Real Estate Search so feel free to contact me: [email protected] or 778-387-7371 to let me know what you’re looking for in a new home.
As always, let me know if you need a recommendation for a mortgage broker so you have an up to date idea of what you can afford and why. I’m going through the process again myself and it’s a good reminder to get started on the financing aspect early as it can take some time to get everything in order.
Sending you health and happiness. Support your local East Van businesses!!!!!
– Kristi, contact me at [email protected] or 778-387-7371