Careful analysis of the October real estate statistics is required in order to understand the key factors making it tricky to form any assumptions about November projections.
Yes – sales totals made the record book – second highest number of October sales on record. Most notable aspects to study were the downward trending of inventories in all categories across our eastern region of the Lower Mainland (unlike other Vancouver locations) and the attached housing category sale prices being slower and less than list price – not what we expect, given the other numbers in our attached report. Over all of the Greater Vancouver region, surprisingly, only 25% of residential sales were in the condo category. This is difficult to comprehend when we see declining condo inventory in the Vancouver Real Estate Board statistics.
What is missing here is the information on new builds – extensive competitive inventory across the lower mainland offering inducements to buyers and realtors, which tells us that sales are slower than developers would like or had anticipated. This changes the inventory picture for townhomes and especially condos. With our existing, older condo stock suffering from huge insurance jumps, increasing maintenance fees and the cost of necessary replacement and maintenance items – a 10 year warranty, lower fees, brand new appliances and historically low interest rates make brand new suites pretty attractive.
Pandemic life has made home more of a central focus for buyers, encouraging them to rethink the condo in favor of a detached home and garden if they can afford it. For condo buyers – here is a situation not seen for a long time – lots of choice with attractive financing options and a softening market. Theirs to choose between many locations & quality.
For condo sellers – whether developers or homeowners, pricing will be the key – it is no longer good enough to look at previous sales for the past few months and decide to match them. It will be necessary to constantly assess the competition and be the leaders, not the followers, in getting to that sweet price spot where a buyer will seriously consider your suite over the noisy competition. Knowledge is power.
In real estate, we have always said that our market “turns on a dime” and the difference between September and now supports that very old statement.
We shall happily answer any questions you have regarding buying and selling, and how your home fits into the bigger picture. As temperatures drop and we all look forward to healthier days, know that our mission remains to keep you covered in that tradition of trust & caring.
Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Sheila Francis, Ray Harris and Shane Goutsis.