At Oakwyn we’re always wanting to present the facts in an engaging way. Every month, one of our agents will unpick current market statistics from the Real Estate Board of Greater Vancouver to help you understand what’s going on in the real estate market and what you should be looking out for.
For December’s statistics report, we have Oakwyn agent, Adam Chahl here for his market update.
A Year Like No Other
Taking a look back on 2020, it’s quite remarkable that we ended the year with as many transactions as we did. In early 2020 the market stalled as the pandemic took centre stage.
However, as the year progressed we’ve seen a huge uptake in the number of transactions, driven by people’s desire for more space and more affordable housing.
We’ve seen an exodus over the course of the year as people move away from the downtown core, not only to the valley but places like Surrey, Langley, and Kamloops.
At the end of 2020 we ended up with 30,944 sales. Compared to 2019, that’s a 22% increase in the number of transactions and an increase of 25% compared to 2018.
Adam's Key Observations
The month of December saw 3,093 sales which is 53% up from December 2019. That striking number tells us that half as many more sales happened during the month of December 2020 than the previous year.
Adam notes 2 key questions being asked of him.
“Do you think we’re going to see an increase in the level of foreclosures that we see and an increase in the level of de-stressed sales in 2021?”
When we look at the increase in the last twelve months; 10% on detached homes, 4.9% on attached homes, and 3% on attached apartments, there is an increase in equity across the board. So, even if a small business owner needs to sell their house to fund their business, they still increased the equity that they have in their home over the last twelve months.
Because there’s been that increase in equity, people will still be able to sell if they need to. Adam concludes that it is unlikely, given the increase in equity, that the number of foreclosures will increase.
“Why is the detached market just so crazy right now?”
We’re seeing a hugely low level of inventory in the detached market. In fact, our 2020 inventory levels were the lowest we’ve seen in a very long time. This is driving the stories that we’re hearing in the valley where we’re seeing 23 offers and 60 showings on the first day.
The increase in the prices on average is further compounding this lack of inventory. On average, our incomes are not increasing that much compared to the increase in house price. So if you can’t afford to make that move, you’re not going to list your property. If you’re not going to list your property, that further compounding of the low inventory happens. Whilst the prices are increasing, this will further compound the inventory problem.
Get in Touch!
As always, we’d love to get your take on this. Comment and let us know if these trends and observations are something you’re seeing with your buyers and sellers as well.
As with all our market updates, it is property type specific. So work with your Oakwyn agent, work with your trusted real estate advisor, and come up with a plan that makes sense for you in 2021 if you’re thinking about making a move.