What pandemic? Home sales in December, traditionally the quietest month of the real estate year, were the highest total for the month on record. Home became most important to owners spending so much more time there and reflection on needs and wants became the order of the day – hence mass moving to more appropriate, friendlier digs. Different for every home owner, the needs varied, but detached homes came out on top. Traditional, older family neighbourhoods offered gardens, close proximity to the quintessential neighbourhood school, privacy and quiet. Brand new areas off the beaten track also became attractive as commuting became a non issue for those moving into permanent working from home situations. It was an unimaginable shake up mid pandemic.
Maple Ridge benefited grandly with a detached selling rate of almost 9 in 10 listed homes selling very quickly (9days) at an average of 3% over list price. Most popular locations were Silver Valley and West Central.
Across our region, except for Pitt Meadows, our multiple listing inventory of all types of home dropped in December. This put upward pressure on sale prices especially in Port Coquitlam – with an amazing sales ratio of more than 100% of attached home inventory selling and almost 8 in 10 detached homes selling. As we look at statistics farther west, there is activity, but not nearly at the same level as our eastern municipalities…Which of course proves the importance of price without the same commuter need.
Spoiler alert – the condo and townhouse numbers do not give the whole story. The vast majority of new developments throughout our region are sold through the developer in show homes and are not factored into either the attached statistics or those referenced by Greater Vancouver Real Estate Board. Over the past year there have been many newly finished developments and many others attempting presales. Watching the ads now crossing our desks (‘no mortgage payments, or strata fees for the first year – lower required deposits’ and on from there), we must conclude that these brand new condos are not flying off the shelf causing adjustments to be made by developers in both terms and costs. Good to be aware – take your trusted independent family realtor with you to shop new condos!
Another fall out from this burgeoning supply of new condos is the consequence for existing resale condos. Owners tend to review other suites like theirs currently on the market and select a price based on such a small segment of the actual inventory out there on the market. They are competing with brand new which comes with warrantees on everything, lower maintenance and insurance fees. Yes a buyer may still prefer the resale suite and its location, but will not pay the same as they would have a year ago before the upward trending of new condos, with their cost benefits, became evident.
What of 2021? The million dollar question! Our real estate market will depend, as ever, on supply and demand – pressure on price will always result from under or over supply. Interest rates have been a big driver and will continue to be, while the working at home trend, should it grow or stabilize will also have an effect.
The most interesting aspect of our market last year was how many people, given time to reflect and assess their lives, made huge decisions in terms of giant moves to other provinces, other countries and far off remote locations. These based often on family, underlying dissatisfaction and the realization of how fragile and fleeting are our lives and what is really important – not the same for everyone. This is the final unknown which will shape our 2021 market. Sorry no crystal ball!
What we do know is that Generations Real Estate Partners are the boots on the ground with the day to day, living experience on how the market is unfolding and we are always happy to apply that to your specific situation. We are not only your consultants, but also your sounding boards, with your best interests uppermost. We won’t tell you what to do, but will always advise if risk is unduly attached. Whether you are taking your first step on the real estate ladder, or your last, we are here for you with every resource you need – continually keeping you covered.
May your 2021 be full of hope, good health, happiness and interesting surprises.
Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Sheila Francis, Ray Harris and Shane Goutsis.