We hope that Thanksgiving was a day this year when we could feel gratitude for our families and friends as we got together, whether in person or virtually. Zoom is the wonder connector where regardless of where home is, everyone can join the chat – truly something to be grateful for.
There has been a lot of chatter about the real estate market reaching “balance”, but that is not exactly what the actual statistics for September told us. As pointed out by Keith Stewart, economist for the Greater Vancouver Real Estate Board – our September inventory of homes showed a 90% decrease from last year’s inventory in the same time frame. Translated that meant there were insufficient homes to meet the continued high demand. A step towards balance came with the fact that yes, the overall supply remained low, but without the same extreme pressure on the prices. With an absorption rate of 34%, it remains a seller’s market for yet another month.
Looking locally, it remains the same story as for the past few months – as we move east, the sale numbers increase even though the inventory decreases in most cases. In the detached category, Pitt Meadows experienced a higher number of sales than inventory with homes selling on average 3% above list price. Maple Ridge detached had the exceptional absorption rate of 7.5 in 10 selling on average 1% above list price. Port Coquitlam’s seriously dropping inventory in detached homes resulted in a 67% sales ratio average with homes selling 3% above list price – a clear indication that inventory affects price.
Our lowest absorption rates occurred in the westerly locations – Burnaby, New Westminster & Coquitlam, specifically in detached homes. Overall throughout the Vancouver Board area townhome sales are the strongest with no exception locally. Port Moody’s statistics are interestingly different in that the sales in detached and attached homes are pretty similar: 53% sales ratio in detached homes selling on average 7% above list price and 59% sales ratio in attached category, but selling 2% below list price.
With our next time line being Christmas and all eyes on the interest rates, our crystal ball becomes cloudy! There will still be those serious buyers who are determined to buy the “right” home – but will sellers come on stream in any kind of numbers any time soon?
Those who have been tempted by the rapid increase in sale prices have already taken advantage of the strong market – impossible to guess how many potential sellers are waiting until this pandemic is over. For some, the idea of having unknown buyers in their homes – regardless of rigorous sanitary protocols, is to be avoided for now.
Only time will tell…watch this space.
One thing we can forecast is that, whatever the climate, Generations Real Estate Partners will be ready to keep you covered as always. Ready any time to answer your questions and give you the latest from our local “boots on the ground” experience.
Continuing in our long tradition of trust and caring, we are:-
Michelle Hawthorne, Scott Johnson, Ray Harris, Shane Goutsis and Sheila Francis