housing demand remains strong heading into 2019’s final month . Five straight months of rising year-over-year sales counts from Langley to West Vancouver has reduced inventory and tilted the scales in favour of sellers.
HOME TYPES The growth in overall home sales has not been driven by just one type of home, as detached homes, townhomes, and condos have each registered similar year-over-year increases. In November, for example, condo sales were up 45%, detached home sales were up 48%, and townhome sales were 51% higher. This reflects the broad-based nature of current housing demand from downsizers and first-time home buyers to up-sizing families and those simply looking to relocate within the region. BEDROOM COUNTS As with home types, the demand for different bedroom counts has been strong across the board, with the year-over-year increase in sales of homes with 3 bedrooms (+55%) slightly outpacing that of 4-plus bedrooms (+53%), while 1 beds (+44%) and 2 beds (+40%) were not far behind. Again, this reflects the latest evolution in housing demand on the part of everyone from those living alone to families big and small. PRICE POINTS In terms of value, the biggest increase in sales compared to last year has been for homes between $1-2M (+64%), followed by those priced between $500K-1M (+57%). Those under $500K saw sales increase by 28%, while--perhaps most surprisingly--sales of homes valued at $2M-plus rose 18%. Clearly, confidence is returning to the market. At a regional level, all of this has translated into conditions that, for the second month in a row, favour sellers overall. While balanced market segments, and even those with conditions favouring buyers, can be found if one digs deep enough into the data, it seems clear that both now and in the medium-term we should expect more of what we’ve been observing during the latter half of 2019: robust demand and relatively constrained supply.
SUB-MARKETS The 48% year-over-year increase in sales in November reflected a 36% increase in sales in the Fraser Valley board area and a 55% increase in the Greater Vancouver board area. This latter figure was the Greater Vancouver board area’s largest such change since December 2013, a period spanning 71 months. Drilling down even further geographically, November sales were up in every corner of the market, ranging from 18% higher in Langley to 40% higher in Surrey, 73% higher in East Van, and 113% higher in West Vancouver. In fact, every sub-market covered in the rennie review experienced positive year-over-year sales growth.
With the November data now in for the Vancouver region, it’s clear that our real estate market has re-established its footing and is poised to continue along its new trajectory. The high-level data tells a consistent story, with sales across the the Vancouver region in November up 48% versus November 2018, total inventory down 19% over the same period, and benchmark prices recovering towards last year’s levels. What’s really interesting beyond these headline statistics--and maybe even a little surprising--is the breadth of the demand resurgence across the Vancouver region. Indeed, the data unimpeachably show that it has materialized across virtually all of the region’s geographic sub-markets, as well as across all home types, bedroom counts, and price points.
Copyright © 2019 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of December 4, 2019. All data from RealEstateBoard ofGreaterVancouverandFraserValley & Rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E. 3
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