Along with the advent of summer came a not so subtle change in the market as inventory increased, outstripping the demand in the western most regions of our local market place.The June Vancouver Real Estate Board report stated: “ Steady home sale and listing activity in May showed a shift back from the record breaking activity seen in earlier spring months.” With less market intensity, the pressure is on realistic pricing – the price must be “right” for current market conditions. This is the moment to get ahead of the curve – sellers need to be proactive rather than reactive. Our market can change so quickly that it can leave the less aware and nimble sellers behind.
On top of increasing inventory, we also have the revised mortgage stress test coming into effect, reducing maximum borrowing amounts by approximately 4.5%, and the average 5 year fixed mortgage rates climbing back over 2% since the beginningof the year. Market forces beat Government almost every time!
The detached Burnaby market is a fine example with a recent steadily increasing inventory to a current 413 active listings selling at a rate of only 2.8 in 10 homes, and sale prices pretty much still hovering around the $1.700,000 mark. Sales were double that of detached homes in Burnaby’s attached market (condos & town homes) with a 4.7 in 10 homes selling.
With only 95 detached homes listed for sale in New Westminster, their May selling rate was at 4.5 in 10 homes selling.
Like Burnaby, Coquitlam is a larger market which has seen inventory rise to 336 detached homes listed last month with a 4.4 in 10 homes selling rate. Interestingly, that was a slightly better rate last month than in Port Coquitlam’s detached market, although their attached market boomed with 8.4 in 10 homes selling.
Maple Ridge did not have the same rise in inventory, consequently remaining a sellers market with a 9.2 in 10 selling rate for attached homes and 6.9 in 10 rate for detached homes.
We are watching the market carefully from the ground, not just the graphs, and are in tune with the differences which come with location and neighbourhoods. The winds of change are here and if you want to know how they affect your home, we would be happy to discuss that with you. Buyers will have more choice if inventories keep climbing and purchasing could be less stressful. That is where our strategies for sellers and buyers come into play – no one size fits all! We listen to your concerns, what you want and then work at getting you there on your program.
So….watch this space next month – we’ll be back with the latest.
We remain your partners in real estate – ready to keep you covered whatever the season.
Michelle Hawthorne, Scott Johnson, Ray Harris, Shane Goutsis and Sheila Francis.
Generations Real Estate Partners