July 2021 - Vancouver Real Estate Market Update
“Steady sales, reduced listings and virtually unchanged home prices in July”
The above is the title headline in the Real Estate Board of Greater Vancouver’s July 2021 market update. In fact, you could literally stop reading the report there and capture a large picture of what is happening in Vancouver real estate right now.
This month will not be a breakdown of minimal percentage changes, differences in June vs July numbers, or any other pointless statistics. The reason being, we want to keep things simple! That’s literally it. Now these numbers are not overly difficult to understand, but the market right now is not about the particular percentage we are down on Inventory vs June 2021 (25.2%) Dammit I couldn’t help it!! No, the way the market should be looked at right now is the trending behaviour.
To be frank, Vancouver is not a market where knowing a particular statistic is going to allow you to buy a property for a ‘Steal of a Deal’ $250,000 below market value. We’re not that city, if you want that, go to Calgary. The rule of thumb stands at, quite literally, purchase sooner than later, hold, and watch your value increase.
If you’ve followed our updates over the past few months, you will notice Jay and I have been calling the market starting to shift to a less heated climate. Each month we’ve been calling this. Not just out of the blue, but by those same statistics mentioned above. Finding the details, analysing them, and seeing how that is going to correlate with our market. Flash back to some extremely sexy looking ankles, by which I mean our July 15, 2021 Video - A Market Comeback? If you can’t find it, you can watch it here.
In this video we highlighted the slowing of buyer demand. On top of this we predicted price increases to level out. That is exactly what has happened. In fact prices remained pretty much the same Juy vs Aug this year. Now for the disclaimer - This does not mean it’s a buyers market. Take a seat and hold on. Once again, we are looking at trends here. The trend is showing a slowing to a more balanced market.
In fact, home inventory levels are significantly below the 10-Year average (worst statistic of all time by the way.) But nonetheless, when inventory is low, that typically pushes the market towards sellers territory.
It doesn’t take a rocket scientist to realise that low inventory levels, and the market is STILL showing signs of slowing, that we are heading for more balanced territory.Jay brought up a very good point when we were discussing this for the weekly video version of this blog. You have Sellers now seeing something sold 2 months ago and wanting that same market price, and also buyers wanting a lower price due to market conditions shifting more in their favour. So we are at this but of heads phase right now, until both sides ease their expectations.
So for you sellers, once again, we tell you that you are not getting multiple bids, subject free over your MARKET VALUE. Note we said market value, not your listing price. Buyers, the market is not at a point where you can start playing games with your offers and expect sellers to hold on for dear life. Each of you need to find common ground. The transition phase of markets always has this bumpy road for both sides for a time.
That pretty much sums it up for the market update! We’re happy to provide any further details, including statistics, to those that would like.
Feel free to reach out on the contact details below! You can also check out the video version of this blog here. As well as the podcast version here.
Thanks for reading along!
Until next week,