Happy July Everyone!
Finally we’ve seen some solid sunshine weather after a slow start. Similar to real estate results in fact. Yes, I don’t think it’s a surprise to people active in the market, that things have been on the rise. July is particularly interesting as it’s this exact time last year that the market started it’s shift upwards!
Home buyer demand has been on the rise, but when comparing year-over-year, it’s always been compared to a slower time in the market. July is the first ‘Challenge’ really, of comparing year over year results to an increasing market.
So let’s take a look at how the Vancouver Real Estate market performed in terms of sales - July 2019, vs. July 2020:
Immediately in front of us we can see it’s all positive. More sales are taking place and the numbers are up. In fact, we’re almost 10% above the July average for home sales. We’ve always said that the 10-year average is not the best market indicator, so we stick to that same belief now too. Some people just hold onto that figure for dear life in the hopes the market will drop.
But how does this compare when bringing listings into the fold? Well let’s look at that Sales to Active Listings Ratio for July.
That’s a huge number. Considering a few months ago we were at 11.5%. That number puts us in the ‘Sellers Market’ range as it’s above 20%. Add that to June’s ratio of 21.4%, we now have two continuous months in the sellers market range. If this continues through August, we are arguably moving into a sellers market.
This is where the trajectory we have been talking about so often comes into play. It’s important to see that trend to get ahead of the market. There is a reason why we have been reporting this percentage has constantly been increasing. If you’re a buyer, you will be seeing more pressure coming in the market to make a decision. If this trajectory still continues, you’ll be seeing pressure on pricing.
As well as the above numbers, external resources like REALTOR.ca have even seen a large increase in activity. Their website just hit record high volumes of visitors at 10.7 Million. Thats up 46%. 447,000 requests for information to Realtors, up 51%, and a decrease in inventory levels by 18%.
You may have noticed we didn’t talk much on the inventory levels. Inventory levels were also high, above the 10-year average numbers too. But inventory is easy to get swept up in. The sales to active listing ratio is really what should be paid attention too, after all, if inventory levels are extremely high, but it’s all being swallowed up by home buyer demand …. That’s what paints the market picture, not inventory levels.
Contact us today for any further questions regarding your Real Estate Journey!