it's Summer and the 2nd quarter of the year is done. The sun is shinning and the blue skies are clear! Both the weather and the Vancouver real estate market are phenomenal this time of the year!
I have analyzed the 2nd Quarter stats and here are my insights:
- We have entered a Seller's market for houses with 28.5% homes selling within a month. The attached market is at the tail end of a balanced market with 19.9% of the homes selling within the 1st month.
- Sales for houses are up 27% and for attached homes they are up 23%.
- Inventory is down -13% for houses and up 4% for attached homes.
- The detached housing market has 3.8 months of inventory while our attached market has 5.5 months.
- The average price of a house is $1,264,000.
- The average price of an attached home is $507,844.
If we compare from the start of the year (January):
Prices are up 2% for houses and up 10% for attached homes.
If we compare from a year ago (June 2013):
Prices are up 13% for houses and up 7.5% for attached homes.
Now... there are some areas that are doing better than others just as some areas offer better buying opportunities. Here is what I am seeing:
For buying detached: West Vancouver because it offers a good selection of houses and bigger properties. You will find that you can get more for your money when compared to Vancouver's Westside. It also saw the highest price increase from the start of the year with prices rising 8.6%
For selling detached: the Vancouver Eastside and North Vancouver. This is where we are seeing the highest percentage of homes selling and the lowest amounts of monthly inventory. This is helping sellers attract multiple offers on good properties or on lots where one would want to build on.
For buying attached: West Vancouver because there is a good amount of inventory to chose from and not a huge amount of new homes coming on to the market. This helps keep inventory at stable levels.
For selling attached: Downtown Vancouver and the Vancouver Eastside as they are both experiencing "Seller's Markets". Over 26% of the homes are selling there every month.
These trends I see continuing in our real estate market because of the following factors:
1) Interest rates: The big banks have kept their mortgage rates in check and are offering 5 year money for under 2.99% again. The prime rate has stayed at 3.0%.
2) Confidence in the market: Prices have not declined as the market has maintained a good level of inventory and the increase in sales has not scared buyers away. The sales activity level is at a pace that is comfortable for both Buyers and Sellers and prices are seeing a smooth increase rather than a very sharp one.
3) Transfer of Wealth: More and more Baby Boomers are downsizing or cashing in on their real estate. They are not holding mortgages so this is a huge influx of cash for them. They are able to use this cash to settle themselves in comfortably to support their lifestyle and are also able to help their kids get into the market.
I have put the 2nd Quarter Stats into a graph form. The first two graphs show the Percentage of homes selling and the next two show the Months of Inventory.
If you would like to compare how the 2nd Quarter stats differ from the 1st quarter stats, click on the 1st Quarter Market Stats for Metro Vancouver.
If you have any questions about the market in your neighbourhood or need assistance in planning your next real estate move, please feel free in calling me or simply filling out our contact form.
Enjoy the sunny weather!Posted by Tony Cikes on