North Delta Market Update: July 2016

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What a difference 30 days can make. If you remember, back in June I was talking about it being a bounce-back month because the sales had bumped up and inventory had come down. It was hard to identify a firm trend in the marketplace. I thought we were on our way to a shifting market and that things were cooling, but June turned out to be tremendously active.

For July, there is no question we’re now experiencing a shifting market. Home sales dropped from 105 to 47, and inventory has climbed from 156 to 196. We haven’t seen levels of activity this low during the month of July since 2010, when there were only 32 homes sold.

Since our peak of 95% back in March, the sale to active listings ratio has steadily declined from 67% down to 24%. Anything between 15% to 20% is considered a balanced market, so technically we’re still in a seller’s market, but we’re very close to returning back to a normalized market.

The 15% foreign investment tax has not put a stop to the real estate market. Of all the 47 homes sold in July, the bulk of them sold within the first 10 days of the month. After that, the sales were very much trickling off and we were on our way to a cooling off period regardless of the tax initiative.

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There is no question we’re now experiencing a shifting market.

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For the first time in a long time, we’ve seen our benchmark price drop in July by .8%. This isn’t a significant drop, but it’s still a trend worth watching. We’re up 43% from last year, so homeowners have thus far seen incredibly equitable gains. I expect August, however, to be a much quieter month. Besides the fact that it historically is, many homes in the marketplace are adjusting value and reacting to the shifting market. As that inventory gets absorbed, expect the benchmark value to adjust as well.

What this cooling marketplace means for you as a homeowner is that you have a better opportunity to make timely decisions regarding possibly downsizing, relocating, or selling your home in conjunction with your purchase. We haven’t seen that in a long time, and we’ll continue to watch this trend.

I’ll see you again in 30 days. As always, if you have any questions at all regarding the market, your home, or advice on buying or selling, please feel free to reach out to me by phone or email. Enjoy the rest of your summer.

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June Was A "Bounce Back" Month for Sales in North Delta

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I wanted to take a moment today to update you on the North Delta real estate market for June.

Looking at the big picture, June was a record-setting month for sales across the entire Fraser Valley. Demand is still elevated and we're still very much in a seller's market across the Fraser Valley. The situation is no different here in North Delta

Remember, April was kind of the peak of the market with sales as inventory shot up. As we headed into May, we saw sales decline. So what happened in June? Well, it was a bounce-back month for sales - we saw 105 for the the month with inventory dropping from 169 to 156. New listings from May to June essentially stayed level.

Looking at these numbers, we might say the market is trending back in the other direction, and that it's going to heat up once again - but let's not jump to any conclusions like that just yet. I think the market found a balancing point back in May, and I think we'll see this trend continue over the summer. We'll definitely stay on top of the trends and keep you informed as we move forward into July and August.

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This continues to be the most opportune time we've seen in our history.

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Taking a look at the sale to active listings ratio, remember that March was the peak, and that we've seen that number climb steadily down from 95% to about 55% in May. What happened in June? With sales going up and inventory decreasing, we should see that number increase, and in June, that number jumped up to 67%. Interestingly enough, we're seeing the same sale to active listings ratio this June as last June (69%), and although it doesn't feel like it, the ratios really are the same.

Finally, I want to touch on benchmark price. In May we saw that value shoot up to $881,300 and at that time, I thought it was a lagging indicator based on the flurry of activity we saw in March and April. In June, that value is up about 2.8% to $905,700 from May, and it's up 47.8% from June 2015.

What does that mean for you as a North Delta homeowner? Well, we're still in a seller's market. Demand continues to be quite high; June was a record-setting month. As a homeowner who might be considering selling and making a move, this continues to be the most opportune time we've seen in our history. If we do see history repeat itself though, we can expect the market to cool down in July and August. Kids are out of school and families are on vacation - it's very typical of our market situation. As we get out of Labor Day, the market picks up as we move forward to Christmas.

As the market picks up, I'll of course be the first to bring you that information. If you're thinking about buying or selling, give me a call soon. As always, if there's anything I can do to help, feel free to give me a call or send me an email.