Vancouver Real Estate Market Update | January 2019

Vancouver Real Estate Market Update | January 2019


Hi everyone,
Gary Serra here with Gary Serra Group with your January 2019 market update.
So if we’re looking at what’s going on in the market, you know we are continuing
to see a market that is shifting and adjusting and our numbers are definitely
reflecting that. If we look for January, the number of home sales was 1103 that
represents a 2.9 %t increase from December, so last month, and a 39.3% decrease from January of last year. If we look at the
numbers, here you can sort of see that the in 2018 there were 1818 homes sold. Going forward into current listings, currently listed on the market
for January is 10, 808 homes that represents a 5.2% increase from
December, in other words last month, and a 55.6% increase
from January of last year. So you know you know literally 50% more homes around
the market now than a year ago. Not surprising because the market was know
literally, going gangbusters last year even in January. In terms
of market definitions of what kind of market were in, and we
determined that by sales to active ratio and I talk about this every month just
so that people understand what it means. When we talk about that a seller’s
market is when the sales to active ration, so let’s say home sales
compared to active listing sales are over 20%, and pretty much all of 2018
2017 everything was in the seller’s market, that’s a seller’s market. A balanced
market is anything between 12% and 20% and anything below 12% is a buyers
market. So if you’re looking at the numbers for January of 2018, our sales to
active ratio on each category and combined, for condos it was 13.6% which puts us in a balanced market, and townhomes we are at 11.9% which puts us in just below balanced, just verging on
the buyers market in the townhome market, and detached homes are well into
buyers market of 6.8%, and in combined ratio we are at 10.2%, which again is in a buyers market. If we compare that to
December 2018, condos were at 14.2%, so you can see that
the numbers are sliding across the board, condons were still in balance but
we’re in a higher balanced market. Townhomes were at 12% and now
we’re at just under twelve percent so you can see that even in that category
it’s starting to slide from balance like lower balance into buyers, detached is
continuing to go down into the lower category of buyers and combined ratio
again has also gone down a couple of points as a whole. So let’s
look at the benchmark price for January, so the current benchmark price for Metro
Vancouver is a $1,019,600, that’s overall in all
categories as a general benchmark. This is a 4.5% decrease from January
of 2018 and a 7.2% decrease over the past six months. So you can really see that major changes have happened in the last six months in
the market, which is quite evident because last year, I’d say the first
half the first two thirds of the year, was busying and it was really the last half
to the last quarter of the year where we started to see a real shift in the
market. Moving forward, so if we look at market highlights for January 2019 in
the detached market benchmark price is $1,453,4001and average days on market is 64 days. In the townhouse category, benchmark prices $800,600 and average days on market is 52 days and then in condos or
apartments benchmark price is $658,600 and 47 days on the market. So across the board we’re looking at you, know forty seven days minimum up to sixty four days and we’re definitely seeing properties sitting on the market for longer periods of time. If we compare
that to December 2018, the detached was $1,479,000
so obviously numbers have slid somewhat in from December to January, days on
market have also gone up in January from 56 to 64. In December
$809,700 benchmark price for townhomes, 44 days on the market, again numbers have
slid from January to eight hundred thousand. Then in the condo market,
benchmark price was $664,100 , and 41 days on the market. So again we’re starting to see that we’re seeing that numbers have continued to kind of slide a bit from December to January. It’s not surprising that it happened because that is a slower time of year. What does
this mean for you? Well you know, I feel like a little bit of a broken record, but
it’s you know the same messaging that I want to kind of relay
in the last several months with the market being how it’s been, it’s
really a great time to move up in the market. We actually are working with
several clients right now that are selling and buying and buying up in
the market because they identify or we’ve counselled them, that this is the
best time ever to do that. If you’re selling a property for, let’s say a
million dollars and it’s let’s say the market has dropped 10 percent and you’ve
lost 100,000 in value and you’re buying a house that’s 2 million dollars and
it’s lost two hundred thousand because of the greater discounting on
the more expensive property, you’re benefiting and actually making $100,000.
If you’re thinking of selling, timing and proper pricing is everything. You know in
this market where everything seems to be shifting month-over-month,
as we’re seeing in the numbers you know, even waiting a few weeks and being on
the market longer can affect you. A good example is we actually had a
property listed in a condo downtown, a one-bedroom and den and we were listed at $595,000 and another unit in the building that
was very similar, sold before us and it sold for $572,000. We then decided to, with my consulting with my seller, we decided to take a different approach. We
dropped the price significantly to $550,000 relisted the property and
rebranded and put it out there again in our marketing promotion we ended up
getting four offers on the property and it sold for over $576,000. So you know that strategy worked really well because we ended up
getting a a higher price in the last sale, so if you just have to be more
aggressive on the pricing, we still are seeing multiple offers even in this
market, it’s just a strategy, it’s more about getting it sold quicker for the
most you can, as opposed to just trying to get you know every dollar off of someone like it used to be and almost getting more than you should be.
If you’re thinking of buying, there’s less competition out there, so it’s a
great time to buy. In this market you know we’ve worked with
several buyers in the last two weeks week, and in every
situation we’ve had a better opportunity to negotiate a better price for them,
we’ve had time to do home inspections and review strata documents or any other
documents and do due diligence to get you know everything sort of in line to
get a good result for the client. And in a shifting market strategy is everything
when it comes to selling ,the example I gave earlier is a good example of that,
you know in this market the main thing I say to clients as a seller is that the
longer you sit the less you’re worth. It’s kind of like chasing a snowball down the
hill, you need to make sure you get ahead of it to catch it and if your
motivation is to sell in a shorter time, then you really need to get the homes
sold quicker rather than later because the longer you’re sitting on the market
you’re gonna leave money on the table. So I hope that
helps if you have any questions of course reach out to us either, direct
message or contact them in the numbers above and I hope you guys have an awesome rest of February!

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