Home sale activity remains elevated across Metro Vancouver’s* housing market while the pace of homes being listed for sale continues to follow long-term averages.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 3,149 in September 2021, a 13.6 per cent decrease from the 3,643 sales recorded in September 2020, and a 0.1 per cent decrease from the 3,152 homes sold in August 2021.
Last month’s sales were 20.8 per cent above the 10-year September sales average.
There were 5,171 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2021. This represents a 19.2 per cent decrease compared to the 6,402 homes listed in September 2020 and a 28.2 per cent increase compared to August 2021 when 4,032 homes were listed.
September’s new listings were 1.2 per cent below the 10-year average for the month.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,236. This is a 29.5 per cent decrease compared to September 2020 (13,096), a 2.6 per cent increase compared to August 2021 (9,005), and is 27.7 per cent below the 10-year average for the month.
For all property types, the sales-to-active listings ratio for September 2021 is 34.1 per cent. By property type, the ratio is 25.5 per cent for detached homes, 53.1 per cent for townhomes, and 36.7 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“The total inventory of homes for sale remains insufficient to meet the demand in today’s market. This scarcity limits peoples’ purchasing options and ultimately adds upward pressure on home prices,” Stewart said. “With the federal election now behind us, we hope to see governments at all levels work with the construction industry to streamline the creation of a more abundant and diverse supply of housing options.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $ 1,186,100. This represents a 13.8 per cent increase over September 2020 and a 0.8 per cent increase compared to August 2021.
Sales of detached homes in September 2021 reached 950, a 27.9 per cent decrease from the 1,317 detached sales recorded in September 2020. The benchmark price for a detached home is $1,828,200. This represents a 20.4 percent increase from September 2020 and a 1.2 per cent increase compared to August 2021.
Sales of apartment homes reached 1,621 in September 2021, a 1.6 per cent increase compared to the 1,596 sales in September 2020. The benchmark price of an apartment home is $ 738,600. This represents an 8.4 per cent increase from September 2020 and a 0.5 per cent increase compared to August 2021.
Attached home sales in September 2021 totalled 578, a 20.8 per cent decrease compared to the 730 sales in September 2020. The benchmark price of an attached home is $963,800. This represents a 17.5 per cent increase from September 2020 and a 1.2 per cent increase compared to August 2021.
What is it about your property that stands out? What will buyers like most about it? What are your home’s most enticing features?
Answering those questions will help you determine which features to emphasize when selling your home. After all, you want buyers to notice and appreciate your property’s best characteristics.
But here’s the challenge...
It can be difficult to determine which features of your home are particularly desirable to buyers. You live there! So, there might be a fantastic characteristic of your property that you’ve gotten used to. You might not even realize its value.
One way to gain perspective is to ask friends, “What is it about our property that you like most? What stands out to you?” Ask them to be candid. Often, they’ll reveal characteristics about your home that may surprise you. You’ll definitely gain insights that will help you when listing.
Another technique is to compare your property to others in the neighbourhood. Buyers often target neighbourhoods, so realizing how your home stands out can be helpful when marketing it. For example, your property might have a larger backyard than most others on the street, or it might have a lot of recent upgrades.
Another way to discover your home’s most attractive features is to talk to me. I can tell you what buyers will like most about your property.
When prospective buyers view your property, you hope they will think it’s the perfect fit for them. It might well be. However, there are things that can get in the way of a buyer recognizing that perfect fit and making an offer.
Take a look at these common reasons why some buyers will walk away from an otherwise ideal property:
The good news is, these situations are easy to avoid. So don’t give buyers reasons not to like your property, especially if it may be ideal for them. Make sure your home shows its best.
It is essential you do your homework before you begin. Learn from the experiences of others, do some research. Of course, with so many details involved, slip-ups are inevitable. But be careful: learning from your mistakes may prove costly. Use the following list of pitfalls as a guide to help you avoid the most common mistakes.
1. Searching for houses without getting pre-approved by a lender:
Do not mistake pre-approval by a lender with pre-qualification. Pre-qualification, the first step toward being pre-approved, will point you in the right direction, giving you an idea of the price range of houses you can comfortably afford. Pre-approval, however, means you become a cash buyer, making negotiations with the seller much easier.
2. Allowing “first impressions” to overly influence your decision:
The first impression of a home has been cited as the single most influential factor guiding many purchasers’ choice to buy. Make a conscious decision beforehand to examine a home as objectively as you can. Don’t let the current owners’ style or lifestyle sway your judgment. Beneath the bad décor or messy rooms, these homes may actually suit your needs and offer you a structurally sound base with which to work. Likewise, don’t jump at a home simply because the walls are painted your favourite colour! Make sure you thoroughly the investigate the structure beneath the paint before you come to any serious decisions.
3. Failing to have the home inspected before you buy:
Buying a home is a major financial decision that is often made after having spent very little time on the property itself. A home inspection performed by a competent company will help you enter the negotiation process with eyes wide open, offering you added reassurance that the choice you’re making is a sound one, or alerting you to underlying problems that could cost you significant money in both the short and long-run. Your Realtor can suggest reputable home inspection companies for you to consider and will ensure the appropriate clause is entered into your contract.
4. Not knowing and understanding your rights and obligations as listed in the Offer to Purchase:
Make it a priority to know your rights and obligations inside and out. A lack of understanding about your obligations may, at the very least, cause friction
between yourself and the people with whom you are about to enter the contract.
Wrong assumptions, poorly written/ incomprehensible/ missing clauses, or a lack
of awareness of how the clauses apply to the purchase, could also contribute to
increased costs. These problems may even lead to a void contract. So, take the
time to go through the contract with a fine-tooth comb, making use of the
resources and knowledge offered by your Realtor and lawyer. With their
assistance, ensure you thoroughly understand every component of the contract,
and are able to fulfill your contractual obligations.
5. Making an offer based on the asking price, not the market value:
Ask your Realtor for a current Comparative Market Analysis. This will provide
you with the information necessary to gauge the market value of a home, and will
help you avoid over-paying. What have other similar homes sold for in the area
and how long were they on the market? What is the difference between their
asking and selling prices? Is the home you’re looking at under-priced, overpriced,
or fair value? The seller receives a Comparative Market Analysis before
deciding upon an asking price, so make sure you have all the same information at
6. Failing to familiarize yourself with the neighbourhood before buying:
Check out the neighbourhood you’re considering, and ask around. What
amenities does the area have to offer? Are there schools, churches, parks, or
grocery stores within reach? Consider visiting schools in the area if you have
children. How will you be affected by a new commute to work? Are there
infrastructure projects in development? All of these factors will influence the way
you experience your new home, so ensure you’re well-acquainted with the
surrounding area before purchasing.
7. Not looking for home insurance until you are about to move:
If you wait until the last minute, you’ll be rushed to find an insurance policy that’s
the ideal fit for you. Make sure you give yourself enough time to shop around in
order to get the best deal.
8. Not recognizing different styles and strategies of negotiation:
Many buyers think that the way to negotiate their way to a fair price is by offering
low. However, in reality this strategy may actually result in the seller becoming
more inflexible, polarizing negotiations. Employ the knowledge and skills of an
experienced realtor. S/he will know what strategies of negotiation will prove
most effective for your particular situation.