East Vancouver Real Estate Market Update – April 2017
Hello We Love East Van readers!
The real estate market is… still busy! The condo and townhouse market is still seeing multiple offers on just about everything (over priced listings tend to sit) and even the detached house market is starting to pick up quite a bit. For the most part, this has been the case for the last two years so it shouldn’t be much of a surprise at this point.
This year started with a bang, and it’s been busy ever since. Low inventory numbers, high sale prices (that seems to increase every week), and multiple offers are common in the sub $1.5-million market, while activity starts to decrease as property gets more expensive.
March is always an interesting month thanks to March Break. A lot of families head to Whistler, Palm Springs or Mexico during the holidays, and it always seems like the market slows down a bit. This last March, the number of listings seemed low but the number of Buyers was still high (for all types of properties in East Van, inventory was at 997 in February and 987 in March, while the Sales to Active Ratio jumped from 23% to 39% over that period of time). Easter is coming up this weekend, so I don’t expect this week to be very busy with ew listings, but after Easter we’re on a straight path from the Spring Market to Summer, and I expect to see a steady increase in the number of listings during that time, though it will need to be A LOT of listings to balance out the demand from Buyers.
I’m often asked for my thoughts on this market, and what might need to change in order for it to slow down. It’s really a number of things, with, in my opinion, some of the biggest players being: a significant increase in interest rates (unlikely), significant increase in inventory (with the City slow to move on new developments, it’s unlikely) or a change in Government (i.e. Mortgage or Tax) policy. The Provincial Election is coming up in May, and that may have an impact on the market depending on who’s elected. If the Liberals are re-elected, I can’t seem them changing any policies that might impact Real Estate any further (their 15% foreigner’s tax was big one) but the NDP has been proposing new housing policies, so expect to see new rules if they’re elected.
Pricing strategy is an important detail to consider in this market. Analyzing how a listing is priced compared to other recent sales will indicate if it was underpriced, over priced and priced just right. I’ve had some Buyers this year take advantage of an overpriced listing that only received one (our) offer, which gave my Buyer the chance to negotiate and subject an offer with subjects. Make sure you work with a realtor who can go through the numbers and give you a sense of value. Though every Buyer asks, predicting what a unit will sell for in multiple offers is almost impossible – it becomes a lot more emotional than logical in that situation – but you can still have a sense of where the offers might go, and at what point it crosses into over-valued territory. I find I usually have a good sense of where they may go, but certain situations surely surprise.
Let’s take a look at the numbers…. notice how the sales to active numbers increase as inventory decreases or flatlines.
(Green is Detached Houses, Blue is Townhouses, Orange is Condos)
Total Inventory for East Van Real Estate:
Sales to Active Ratio for East Van Real Estate
Home Price Index (HPI) Price for East Van Real Estate
Check out our more detailed look into the East Van condo, townhouse and detached market:
If you are looking into buying a home and haven’t yet sat down with a real estate agent to start a professional relationship, you need to give us a call! Given that you’ll be competing with other Buyers who have put in the work to be prepared, you’ll need to do the same. We can ensure that you’re knowledgeable about value, construction and offers so you can be successful. Having an existing relationship with a trustworthy agent will ensure that your best interests are kept in mind during this busy market.
If you’re thinking about selling your home soon, talk to us! We’re a highly qualified team with a thorough marketing and sales plan to ensure a successful sale. Managing a multiple offer situation takes skill, organization and good negotiation skills to make the most of it.
To get started, give us, and your mortgage broker, a call, to ensure you’re aware of your options and finances.
Considering buying or selling in East Vancouver? Give us a shout, or check out our handy Guides below: