Metro Vancouver Real Estate Market Report for November 2020
2nd place November record sales – but predictable seasonal dip in trend.
Author: Meryl Hamdillah, REALTOR with Sutton WestCoast Group.
If you are looking for a realtor to help you buy or sell a property in Coquitlam or Vancouver, feel free to Chat with me now! 604-307-9506
Meryl’s Market Insight
November sales followed a predictable winter seasonal dip but still set a 2nd place record over a 10 year period. Continuing from the previous month’s report, where we showed that this pandemic has had a significant historic effect on the townhome market segment, we present November’s “Not Too Shabby” numbers.
November sales compared across 10 year monthly history.
Detached Home Sales: 1061, 5.6% ▲ above the 10 year average; This is greater than 55.9% of all sales dating 10 years back. Statistically this means that detached home sales are close to the median and not a significant deviation from norm.
Townhome Sales: 632, 57.6% ▲ above the 10 year average; This is greater than 95.6% of all sales dating 10 years back. Statistically this is very significant and shows a clear deviation in demand for townhomes. Not as great as last month but NOT TOO SHABBY!
Condo Sales: 1371, a 16.3% ▲ above the 10 year average; This is greater than 70.5% of all sales dating 10 years back. Statistically this is slightly more than 1 standard deviation away from the average and shows slightly significant increase from norm.
ASIDE: There are – of course – factors other than pandemic that are driving an increase in home sales – including low interest rates, banking confidence, recent government measures to try to regulate insurance premiums, etc.
November homes sales is the 2nd highest on record in 10 years.
There were 3,064 home sales, an increase of 22.7% ▲ from last year and a 16.9% ▼decrease from last month. Sales were the 2nd highest November on record 24.6%▲ above the 10 year seasonal average.
The total inventory of homes listed for sale on the MLS® system in Metro Vancouver were 11,118 a 3.2% ▲ increase compared to last year and a 10.5% ▼ decrease compared to last month.
There were a total of 4,068 newly listed properties for sale across Metro Vancouver in Nov 2020. This represents a 36.2% ▲ increase compared to last year and a 27.0% ▼ decrease compared to last month.
The supply of homes has fallen behind demand and will be a critical factor in market pricing and trends. While demand is elevated across the board, sales activity focussed in areas of lower mainland & Fraser Valley in areas outside the denser core regions.
Benchmark Prices
Overall November benchmark prices of homes have increased.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,044,000. This represents a 5.8%▲ increase over last year and a 0.1%▼ decrease compared to last month.
The benchmark price for a detached home is $1,538,900, a 9.4% ▲ incrase from last year and a 1.0% ▲ increase compared to last month.
The benchmark price of an apartment is $676,500, a 3.4% ▲ increase from last year and unchanged 1% ▼ decrease compared to last month.
The benchmark price of an attached home is $814,800, a 5.6% ▲ increase from last year and a 0.2% ▲ increase compared to last month.
Sales to Active listing ratios
The sales-to-active-listings ratio is defined as the number of home sales divided-by the number of listed homes during the month.
For all property types, the sales-to-active listings ratio for November 2020 is 27.6%.
By property type, the sales-to-active-ratios are:
Detached Homes: 27.9%
Townhomes: 40.1%
Condos: 23.9%
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.