Ladies and gentlemen…... We have arrived.
We have arrived in the official balanced market! If you have been keeping in regular tune with our blog posts, you will have seen the recent conversations have been ‘will we or won't we’ head into a balanced market. Well July and August saw increased home buyer demand, and now with September showing the same trend, that’s officially a full quarter of increased home buyer demand year over year. This has shifted us to a designated ‘balanced market’. Avoiding the questioned
What does this mean? This means sales volume returned to roughly the 10 year average, prices look to have stabilized, and most importantly, people are actually purchasing real estate again. NOTE: Most importantly, people are purchasing real estate that is priced at new market values.
So this takes SOME pressure off sellers, knowing that if they price correct, they will likely sell. Also alternatively provides a bit of urgency to buyers to take action once they find the right place for them.
For all those trying to time the market, and waiting, we are now there and this is the time to jump on purchasing property. Alternatively, those not wanting to sell in a falling market, you now have some ground below you to provide reassurance.
Of course there are still those out there claiming the market will come down further due to various macro economic reasons. Until those events occur though, this is where the market is at. So let’s take a look at some sexy sales figures! Don’t forget, these figures are based on Vancouver Eastside and Westside specifically:
September Sales 2019:
On their own, these numbers don’t really show much other than the basics, but when you look at the year over year, a.k.a. 2018 vs. 2019, we see that the Vancouver market overall increased by 32.04% year over year. This breaks down to an increase of 33.95% for detached homes and 33.7% for attached homes in Vancouver's Eastside. Likewise these numbers were 37.71% for detached homes and 29.53% for attached homes on the Westside.
These are substantial increases when you look at it and ironically, the higher percentage increases are on the detached market side. Take a look at our blog here for more on why that is. Essentially it’s never been easier to get into a Detached home these days with the market and mortgage rates the way they are.
So there you have it. We are officially in a balanced market. What makes this official is our sales to active ratio is now sitting at 17.4%, making it the third continuous month sitting between 12% and 20% (the range in which a balanced market is declared.) The key here is the third month running as these ratios can dip in and out of areas throughout the year, so the markets are based upon a consistent range of a period of time.
Thanks for joining this weeks blog! We are looking forward to the upcoming fall market over the next few months and what it brings! Just to reiterate to all you buyers and sellers out there, NOW is the time to move (excuse the pun) if you’ve been waiting on the market! Give us a call today as we’d love to help you on your journey!
Until next week,