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 all of the 2nd Quarter stats and calculated the June numbers. Here are my insights:
- We have entered a Seller's market for houses with 35% of the homes selling within a month and for attached homes with 25% of the homes selling within a month.
- Sales for houses are up 37% and for attached homes they are up 26%.
- Inventory is down -17% for houses and down -10% for attached homes.
- The detached housing market has 3.2 months of inventory while our attached market has 4.2 months.
- The average price of a house is $703,521.
- The average price of an attached home is $326,046.
If we compare from the start of the year (January):
Prices are up 1% for houses and up 2% for attached homes.
If we compare from a year ago (June 2013):
Prices are up 5% for houses and up 2% for attached homes.
Now... there are some areas that are selling better than others just as some areas offer better buying opportunities. Here is what I am seeing:
For buying detached: Port Moody because it offers a very West Coast lifestyle and the addition of the "Evergreen Line" will improve its connectivity and transit convenience. It also saw the highest price increase from a year ago with prices rising by 12%
For selling detached: Port Coquitlam as we are seeing a 60% list to sell ratio meaning that out of every 10 houses that get listed in a month, 6 are selling! There is also a lack of homes for sale with there being only 1.7 months worth of inventory.
For buying attached: Coquitlam because there is a good amount of brand new homes to chose from and the "Evergreen Line" will provide fast and convenient access to downtown Vancouver and the rest of our Greater Vancouver cities.
For selling attached: Burnaby as we are seeing a steady increase in sales this year month after month.
These trends I see continuing in our real estate market because of the following three 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 Greater 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