Perhaps a bit of both …It was the perfect storm in July – pent up demand after 4 months of low key living in the same 4 walls, unprecedented low interest rates and a supply problem all came together to make the real estate market hotter than the weather.
The recently released July statistics from the Greater Vancouver Real Estate Board revealed that it was officially a sellers market in various degrees across the region. The results were similar regardless of housing category. Our sale numbers showed 22.3% increase over the same month last year and a whopping 28% over last month. Fewer people away on holiday could account for this unsummer like bump.
Pitt Meadows detached homes had the distinction of 131% sales ratio – in other words for every 10 homes listed, they sold 13.1 – quite a feat! Most active price band under $1 million. Maple Ridge attached market was very strong with 5 in 10 homes selling up to a 73% absorption rate in condos between $300,000 and $400,000. Price still matters – in Coquitlam detached category, 3.7 in 10 homes is the overall selling rate, but in the $900,000 to $1 million, the sales ratio is 73%. Farther west, sales are good but not at the same level as our more eastern cities which speaks to the affordability factors.
The determining aspect of our real estate market is still the basic supply and demand rule. Our low inventory is causing competition which in turn is firming or increasing prices – particularly in our more affordable price ranges. Currently our supply is pretty stable, replacing itself but, in most cases, not increasing. As there are no signs of any interest rate increases, then an increased supply of listed homes would be the future game changer. Watch this space….
In the meantime, enjoy the summer. If you are planning a little BC holiday, remember that there are new restrictions for vacation property rentals – limiting the number of guests to 5. This applies to houses, boats, cabins, yurts and hotels. Indoor parties have been major influencers in Canada’s rise in Covid-19 numbers, so stay safe and boringly sensible!
Whatever the climate in and out, we have you covered! We are your boots on the ground for information and detailed market analysis in your specific neighborhood. Always happy to talk real estate, and remain your Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Sheila Francis, Ray Harris and Shane Goutsis.
Continuing in that long tradition of trust and caring