Hi this is Sandra. Happy new year
It's time for the real estate market update again
The December real estate data has been released
I will look into the changes in the Metro Vancouver real estate market for the past year with you all
and use the data to forecast the trend for the 2022 real estate market
December is the traditional low season for the market
Listing decreased 26.7%
Sales decreased 21.6%
The number of listings dropped more than sales
Which Indicates the market demand is still over its supply
The M.O.I (months of inventory) was 1.9 month
The second lowest of the year
Meaning we only need 1.9 months to eat uo all the properties in the market
This number is extremely low
Which also means it is now a very extreme seller's market
The benchmark price in December was $1,230,000
So from January to December 2021 prices increased 16.4%
Meaning the market price is continuously increasing
Since the number of listing is so low, demand is over supply
The number of listing decreased 26.7%
Let's look at the numbers of different property types
Single family detached homes decreased by 22.5%
Townhouses decreased by 31%
Apartments decreased by 29.2%
We are seeing a serious shortage of townhouses
If you would like to buy a townhouse, there would not be many to choose from
Let's look at the sales to active listing ratio
For all property types is 51.3%
This indicates that on average, one sold out of every two listings
Single family house 35.1%, Townhouse 75.6%, Apartment 60.8%
So what do the numbers indicate
The sales to active listing ratio of townhouses is 75.6%
This indicates the market demand for townhouses is extremely high
and the supply has a serious shortage
Due to the situation, many people decided to purchase an apartment instead
Thus the ratio of apartments is also rising
For an independent house, the growth is slower
Since the price increased alot, not everyone can afford to buy
Its sales to active listing ratio was 35.1%
This indicates that on average, one sold for every three listings
After looking at the data, I would like to share with you my market experience during the holiday season
I took my client to Langley as she wanted to purchase a single family detached home
It was situated in a nice neighborhood
The reason we went to see this home is because its asking price was $1.19M, around $1.2M
It is a relatively low-priced single family house, on a large lot, quiet street and situated in a nice neighborhood
the interior needed to be redone.
And its advantage was that both its upstairs and downstairs could be rented
Normally, this kind of property is very popular
In the end, it received 29 offers
How much did it sell for?
$1,505,000
It was even a cash, unconditional offer
This indicated that low-priced, around 1M's independent houses are sought after by many people
Not to say more than 1M, as long as it is an independent house that can be bought within 1.5 M
are all snapped up now
As I just mentioned, many still want to purchase townhouses
As not all can purchase an independent house
Thus purchasing townhouses is also very competitive
The performance of apartments is also very good because many people now give up competing for single family homes or townhouses.
Therefore choose to purchase an apartment instead
The most important thing is to get into the market. This is also the mentality of the average buyers
As for how the market is going
I can't say for sure the price will go up 100% but I am willing to say I am 99% sure the price will continue to rise.
As the M.O.I is just 1.9 month, not even 2 months
this is an extremely low number, definitely an extreme seller's market
If you want to enter the market, you really need to seize the opportunity
As for how independent houses are going
I would say houses below 1.5M's will still be snapped up
And for those exceeding 2M or 3M
The rise be slower
Needless to say, townhouses are bound to win
If you want to buy a townhouse, you need to be prepared and have a flexible budget
As for the apartment, its market gets better and better
Due to Covid, many would like to have more space, as many will need to work from home
Apartments may not be large enough
Many also said they do not want to live in an apartment, as they would need to wait and queue for the elevator
But now the market seems to have digested these factors
Now the apartment market is getting better
Many customers told me that they don’t want to compete with others anymore爭
Because they have to pay extra to purchase a townhouse when there are multiple offers, which is over their budget
Many people now choose to buy high-quality apartments
with nice location, that is near a shopping mall and skytrain station.
with high quality amenities and air conditioning
Therefore the apartment market is getting stronger
Especially three bedroom units, which are rare
There are not many three bedroom units in Metro Vancouver
There are more one and two bedroom units normally, thus three bedroom units are getting more popular
If you would like to sell and exchange your property
As it is now winter, there is less supply in the market
It is actually a good opportunity to list
As there are not many choices in the market, it is a extreme seller's market
Therefore it is definitely beneficial to sellers
Of course some would say they do not want to list during winter time, as they have to hold open houses, and the weather is not nice
I totally understand. If it is not urgent
And you can wait for awhile
You can choose to list in March
But I have to remind you, when you list in March
There will be more competition, as many have a similar mindset
Not selling now and wait till March or April
There will be more supply in the market by then
Therefore I would suggest, If you really want l to sell you property, now is a good time to list
In 2022, no matter if you are a buyer or seller
it is important to understand the market trends
Having enough knowledge of the market is in your best interest
This is also the reason why I keep making market update videos
What I just shared was the big data, if you would like to learn more about specific city or area
Feel free to call me
If you would like to sell, and know the market value of your property
of course you are welcome to contact me any time
if you would like to buy, and understand whether townhouse or apartment is a better choice for your situation
Also feel free to contact me, I can do the analysis for you
Thank you for watching
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see you next time. Bye bye