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August was characterized by unexpected demand in the Vancouver real estate market.
It's typically one of the quieter months of the year. Many Vancouverites (and their realtors) take their final holidays before the end of the summer. The result, is that August is typically more subdued than most months.
That pattern held true for the number of listings on the market. There were a total of 3,483 total active listings. A number that has been declining steadily from the high of 4,227 we hit back in May. This was marginally (3.8%) lower than the 10-year average and 7.8% below July's total.
And while the supply was low, demand was higher than usual. There were 892 sales in August which was just 4% below July's 939 sales and a whopping 11.7% over the 10-year average.
Unusually for this time of year, we found ourselves in a seller's market with 3.86 months-of-inventory. This was led by the townhouse market which saw the greatest strength (2.59 MOI) and the condo market (3.03 MOI).
It's the calm before the storm.
As you've heard me say before, the last few weeks of summer are always quiet. It's Vancouver tradition to take time off through August. Spend time in the Okanagan, the Gulf Islands or on Vancouver Island...and away from buying/selling real estate.
Like clockwork, the past week followed that pattern. In general, market activity was subdued...BUT, there are some glimmers of what may be to come.
There were just 189 sales which was down slightly from 197 the week before. We've been flirting with the 200 sale level for the last few weeks...this being the 3rd time in the last 5 weeks under that bar (we were around 300 sales per week when the market was highly active back in the spring).
We did see new listings jump significantly...from 253 up to 330. That's a big jump and an indication of what's likely to come in the coming weeks. BUT, it's still well under the 500-odd new listings we saw hitting the market back in the spring.
We now have 3,306 active listings on...
In the last week our real estate market showed signs of late summer fatigue. I've spoken before of the impact of long weekends but we are heading into the biggest long weekend of the year...Labour Day.
We saw a sharp drop in sales across the city from 285 (a high for the summer) down to 197. Meanwhile, new listings increased slightly from 243 to 253 pushing total active listings to 3,410.
As we've found ourselves for for much of the summer we are in a balanced market with 4.33 MOI.
The hottest sub-markets are for condominiums. All three areas (East Van, Westside and Downtown) are in fact in Seller's Markets. At the same time, detached homes (houses) on both sides of the city are in a buyer's market.
We will likely see a significant increase in listings come on the market AFTER Labour Day. Between now and then (eg next week) there's unlikely to be much activity as most of us are focusing on beaches, vactions and families (not to mention, back to school!).
Sales were strong in the last month. There were 930 homes sold in July. While it was 12.5% below the 1,063 sales we had in June, it was 8.8% over the 10-yr average.
At the same time, new listings dropped to 1,391 (-29.5% m-to-m and -8.2% below the 10-yr average). Total active listings were 3,754 which essentially matched the 10-yr average (-10.8% m-to-m).
The intense upward pressure on prices appears to have subsided. Most sub-markets edged slightly lower in price over the last month according to the REBGV.
Market activity is typically quieter through the summer months. July was no exception. However, it's interesting to see a divergence between supply (shrinking) and demand (growing).
The biggest impact on the market right now is a lack of supply. Buyers are frustrated that they aren't able to find the property that they want on the market right now.
As I said last month, this is an opportune time to buy without facing significant competition. The problem is actually finding a property...
Week 31 of the Vancouver real estate marekt (July 25th - July 31st, 2021) held some surprises. What would surprise no one is that most indicators showed our market slowing...EXCEPT sales (demand).
Sales actually rose from 224 to 230. That's not a big jump, but it does show demand remains. Meanwhile, new listings dropped to a low for 2021 from 293 to 242.
The result is that active listings (total inventory) fell from 3,792 to 3,604. Months-of-inventory, dropped from 4.23 to 3.92 which puts Vancouver in a seller's market (just barely).
Shockingly, that's the first time since Week 10 (the end of February) that we saw an improvement in the MOI for two consecutive weeks.
I suspect that we won't see a third. The fact that this past week coincided with the end of a month will have boosted the MOI number (we always see a peak in listing expiries at the end of a month...which lowers total active listings temporarily).
The hottest micro-markets continue to be stratas. Condos in particular in East...
What happened in the Vancouver real estate market in the last week (Week 28 - July 3rd - 10th, 2021)?
After a significant dip in all market activity the week before, we saw a bit of a resurgence. It was the first time in more than a month (5 weeks) that the market moved more towards a seller's market.
We find ourselves in an overall balanced market with 4.27 MOI (from 5.32 MOI).
Sales rose to 227 after dipping down to 181 the week before. That's also the first significant increase in sales in the last month. New listings also propelled higher with 399 way up from 263 the week before.
Condos on the Westside took the crown for the hottest micro-market in the past week. They were in a seller's market with 2.92 MOI. East Van condos weren't far behind with 3.12 MOI...and even downtown condos had a great week (the 60 sales moved them to 4.12 MOI).
While westside houses led on the downside with 8.17 MOI, it was a big improvement from the previous week. The micro-market that had the biggest downward...