Greater Vancouver Real Estate Market Overview
There were 3,787 properties sold of all types in Greater Vancouver in October this year compared with 3,741 sold last month, 2,892 sales in October last year and 1,995 sold in October 2018. It was the second highest amount of sales for the month of October on record in Greater Vancouver, second to 3,942 in 2003. Each month it seems that the end of this run gets forecasted but we’ve yet to see that happen. Of course, as we go through a typical year of market cycles, November, December and January see activity slow down.
While this hasn’t been a typical year, it is safe to assume we’ll see this trend playout for the next 3 months as we come off the highs we’ve experienced. This shouldn’t be surprising nor indicative of anything more. This extremely local and well-founded market has the strength of significant demand behind it. But the current pandemic conditions and economic weight from the pandemic may play into market activity, but as we’ve seen it can both pull and push the market. And it is interesting to note that total sales in Greater Vancouver so far in 2020 are just shy of the total sales in 2019 and have already surpassed total sales in 2018. This is much more than pent up demand from a Covid-19 shutdown in the spring.
Total sales in October were 36 per cent above the ten-year average for the month. Looking at the different types of properties, detached home sales were up 43 per cent year over year (77 per cent in September), townhouses up 45 per cent year over year (72 per cent in September), apartments up 13 per cent year over year (36 per cent in September). The number of sales in October last year was the highest by month for 2019 so not surprising to see the year over year increases less this October. Detached homes made up 35 per cent of all sales, while townhomes made up 21 per cent and apartments 41 (down from 44) per cent. Total active listings for apartments are up 31 per cent year over year (compared to 20 per cent at the end of September), and active listings for townhouse and detached homes are down 12 per cent and 20 per cent respectively year over year (compared to 9 and 21 per cent).
In October there was a significant decrease in the number of new listings compared to September. In fact it was the lowest amount by month since May of this year. The number of new listings in October were 24 per cent higher than the ten-year average for this month but with the decrease in new listings and continued demand from buyers, the total number of active listings in Greater Vancouver has dropped down to 12,797 at the start of November. This is compared to the peak this year of 13,790 at the end of September and 12,658 at the beginning of November 2019 in Greater Vancouver.
Average Weekly Listing and Sales Statistics for Greater Vancouver During Covid-19
- First two weeks of March – 253 new listings, 138 sales
- Last two weeks of March – 167 New Listings, 98 Sales
- April – 120 new listings, 56 sales
- May – 189 new listings, 75 sales
- June – 274 new listings, 115 sales
- July – 274 new listings, 147 sales
- August - 299 new listings, 157 sales
- September – 313 new listings, 176 sales
- October 5 to 9 – 300 new listings, 169 sales
- October 13 to 16 – 311 new listings, 186 sales
- October 19 to 23 – 254 new listings, 206 sales
- October 26 to 30 – 222 new listings, 167 sales
Fraser Valley MLS® HPI Benchmark Price Activity
- Single Family Detached: At $1,046,900 the Benchmark price for a single-family detached home in the Fraser Valley increased 1.4 per cent compared to September and, increased 9.9 per cent compared to October 2019.
- Townhomes: At $569,200, the Benchmark price for a townhome in the Fraser Valley increased 0.3 per cent compared to September and increased 5.0 per cent compared to October 2019.
- Apartments: : At $434,600, the Benchmark price for apartments/condos in the Fraser Valley decreased by 0.5 per cent compared to September and increased 4.2 per cent compared to October 2019.
Canadian Mortgage Rates have Fallen
Another factor influencing the market are the low mortgage rates. On November 9, 2020, ThinkMortgages.com provided the following update:
High Ratio Mortgage (less than 20% downpayment) with 25 Year Amortization:
- 5 year fixed rate: 1.64%. Which translates into $407 a month per $100K borrowed
- 5 year closed variable rate: 1.6%. Which translates into $405 a month per $100K borrowed
Conventional Mortgage (at least 20% downpayment) with 30 Year Amortization:
- 5 year fixed rate: 1.99%. Which translates into $369 a month per $100K borrowed
- 5 year closed variable rate: 1.85%. Which translates into $362 a month per $100K borrowed
Market Insights for the Future
As we move through the last two months of 2020, the inventory of resale homes will continue to decline and we’ll start 2021 with another market short on supply. The residential market in Greater Vancouver currently has 3 month’s supply of homes for sale – indicative of a seller’s market. We are witnessing extreme seller’s markets in North Vancouver, areas of Burnaby, Coquitlam, Port Coquitlam, Pitt Meadows, Maple Ridge and Ladner that have 2 month’s supply with their being only one month’s supply of townhomes in Port Moody, Port Coquitlam and Coquitlam. The number of active listings for downtown apartments continues to be high although the increase in new listings leveled off in October. There has been an increase in the number of rentals available downtown as well with monthly rents showing a decline.
“Home has been a focus for residents during the pandemic. With more days and evenings spent at home this year, people are re-thinking their housing situation,” Colette Gerber, REBGV Chair said, “With demand on the rise, homes priced right for today’s market are receiving attention and, at times, garnering multiple offers.”
East of Vancouver, the Fraser Valley Real Estate Board processed 2,370 sales of all property types on its Multiple Listing Service® in October, an increase of 6.2 per cent compared to sales in September and a 48.9 per cent increase compared to October last year. This was the highest sales for the month of October in the Fraser Valley Board, a continued trend from September. There were 3,081 new listings in October, a 12.3 per cent decrease compared to September and a 29.3 per cent increase compared to October of last year. September finished with 6,872 active listings, a decrease of 6.8 per cent compared to September’s inventory and a decrease of 7.1 per cent year-over-year.
“The situation is unprecedented. We are in the middle of a pandemic and in many of our communities we are seeing a strong seller’s market for townhomes and single-family homes priced correctly.” Chris Shields, President of the Fraser Valley Real Estate Board said. “For example, in Langley, our current supply of detached homes would sell in 1.4 months if no new listings became available. And for Mission townhomes, we have zero months of inventory.”
What Does This Mean To You?
Depending on what you're buying or selling, there are many opportunities for both buyers and sellers in today's market.
Buyers: This is a great time for move up buyers (e.g. moving into a more expensive or larger home, or a more expensive neighbourhood). There are also opportunities for first time buyers to get into the market.
Sellers: The market is under inventoried and desirable homes are selling quickly, with competing offers and at good prices. You may be surprised by what your property is now worth. Fill out our home value form and easily find out the current value of your property.
Every neighbourhood and home is unique. So, as your real estate professionals, we're always here to help. We can fill you in on what’s happening in your local market, help you determine what type of homes you can purchase, provide the current value of your existing home and provide a clear idea of the properties currently available.
You don’t have to try to figure things out on your own! We're here to help.
Even if you’re just at the “thinking about it” stage, we recommend getting the information you need now. That way, you’ll be prepared to make the best decision when you’re ready.
So, How Are We Conducting Our Business to Keep Everyone Safe?
As real estate is deemed an essential service by the government, we're able to continue to help clients buy and sell real estate during Covid-19.
As always, the safety of our clients, community and all those involved, is our top priority.
Therefore, we’ve implemented safety precautions, viewing guidelines and are working virtually and electronically as much as possible. Masks and social distancing are the new norms.
For sellers, we continue to create floor plans, videos, 3D virtual tours and high-end marketing for our listings. This is extremely important to buyers and sellers in these times. It allows buyers to preview the property from the safety of their home and determine if a private showing is warranted. Therefore, sellers will have less people viewing their home in person, but the ones who do, are more serious about their home.
Please feel free to contact us if you have any questions.
View Detailed Market Statistical Packages
To view all the details of the current Greater Vancouver, Fraser Valley, Vancouver West and Vancouver East real estate market statistics and graphs, just click the desired buttons below to open a detailed PDF report.