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Today, we’re here with your market update for March 2016. If you remember last month, our inventory was incredibly low. In the last 30 days, inventory has slightly increased, with 111 new listings coming onto the market.
To put that in perspective, that’s 52 new listings up from January; inventory has increased by 113% in the last month. Additionally, we’ve experienced an increase in sales. In February, 74 homes sold, which is a 60% increase over January 2016 and a 30% increase over January of 2015. Even though there are more listings, buyer demand is still strong! That’s excellent news for the market climate.
As far as price, in February of 2015 our benchmark price was $569,700. This year, that number increased to $746,600. Not only is that a 31% year over year increase, it’s a 3.5% month over month increase. It is not sustainable to have 3.5% monthly gains as the year progresses. The market might be a little out of control right now. Buyers are frustrated because they have to enter bidding wars right away, but that environment is not going away any time soon.
Why is the market like this? There’s been tons of talk about offshore investments, but that’s not happening in the surrounding North Delta area. We are seeing the ripples of that issue coming from the west. People in Vancouver are selling their homes for a lot more and bringing their equity out this way. They’ve identified the North Delta as a great place to live, so these trends are caused primarily by local buyers.
February was a record-setting month. Inventory is being absorbed fairly quickly, and homeowners in the North Delta are able to generate equity quickly, too. This is a good and bad thing, as affordability could become an issue for the next generation.
We are about a year away from an election, and affordability, offshore investments, and controlling the real estate market will become a political talking point. The government hasn’t discussed this much so far, but the Democratic Party has made it clear that they'll have a proactive approach to housing.
Locally, interest rates are still relatively low. It doesn’t look like they’re going to change. If you’re a seller and you plan on downsizing or leaving the area, now is a great time to do so. If you’re a buyer, you need a Realtor who can help you come up with the right strategy for success!
If you have any questions, give me a call or send me an email. I would be happy to help you!
To put that in perspective, that’s 52 new listings up from January; inventory has increased by 113% in the last month. Additionally, we’ve experienced an increase in sales. In February, 74 homes sold, which is a 60% increase over January 2016 and a 30% increase over January of 2015. Even though there are more listings, buyer demand is still strong! That’s excellent news for the market climate.
As far as price, in February of 2015 our benchmark price was $569,700. This year, that number increased to $746,600. Not only is that a 31% year over year increase, it’s a 3.5% month over month increase. It is not sustainable to have 3.5% monthly gains as the year progresses. The market might be a little out of control right now. Buyers are frustrated because they have to enter bidding wars right away, but that environment is not going away any time soon.
Why is the market like this? There’s been tons of talk about offshore investments, but that’s not happening in the surrounding North Delta area. We are seeing the ripples of that issue coming from the west. People in Vancouver are selling their homes for a lot more and bringing their equity out this way. They’ve identified the North Delta as a great place to live, so these trends are caused primarily by local buyers.
February was a record-setting month. Inventory is being absorbed fairly quickly, and homeowners in the North Delta are able to generate equity quickly, too. This is a good and bad thing, as affordability could become an issue for the next generation.
We are about a year away from an election, and affordability, offshore investments, and controlling the real estate market will become a political talking point. The government hasn’t discussed this much so far, but the Democratic Party has made it clear that they'll have a proactive approach to housing.
Locally, interest rates are still relatively low. It doesn’t look like they’re going to change. If you’re a seller and you plan on downsizing or leaving the area, now is a great time to do so. If you’re a buyer, you need a Realtor who can help you come up with the right strategy for success!
If you have any questions, give me a call or send me an email. I would be happy to help you!
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