Vancouver Real Estate Market Update For March 2021

Vancouver’s housing market is experiencing seller’s market conditions right now so, how do you win out in multiple offer situations when you're not the highest price and have subjects in your offer?

This is your Vancouver real estate market update for March 2021 and we’re getting into it right after this.

Hey, everyone. I’m Craig Veroni with RE/MAX Masters Realty. I’m your local real estate agent here in Vancouver, BC.

In today’s video, I’m going to cover what’s happened in the Vancouver real estate market through the month of February. What might be coming that could affect that market and a piece of technology I utilize to make your home selling and buying experience a smoother one and if you stick around to the end I’ll show you how I help my buyers win out in multiple offer situations even when they’re not the highest price and have subjects in their offers.

I shoot a ton of videos about what it’s like to live, love, and own here in Vancouver so, if you haven’t yet, please hit that subscribe button, and don’t forget to click on that bell so you can be notified immediately when I have a new video out. I really want you to be able to stay up to date on all the latest tips and insights into the Vancouver real estate market so you can become an expert too.

There was a 73.3 percent increase from the sales recorded in February 2020 to those recorded in February 2021 and a 56 percent increase from the homes sold in January 2021. Last month’s sales were 42.8 percent above the 10-year February sales average.

Metro Vancouver’s housing market is experiencing seller’s market conditions and the supply of listings for sale isn’t keeping up with the demand we’re seeing. This is creating increased competition amongst home buyers is causing multiple offer situations and upward pressure on prices.

This is particularly true in the townhome and detached home markets where demand is outstripping the available supply. Of course, conditions will differ depending on your location and property type so it’s important to work with your local REALTOR® to develop strategies to meet your needs. And, when multiple offer situations are the norm you definitely need an agent who has a strategy.

To give you an idea of how tight supply is at the moment, the total number of homes currently listed for sale on the MLS® system in Metro Vancouver is down 9.1 percent over this time last year and is 21.2 percent below the February 10-year average for new listings. 

By contrast, the sales-to-active listings ratio, for all property types, for February 2021 is 44.6 percent. For the individual property types, the ratio is 41.8 percent for detached homes, 61.8 percent for townhomes, and 41.7 percent for apartments. 

If you want to stay on top of the market, whether you’re buying or selling a home, knowledge is key and the Snap Stats market reports are a fantastic way to arm yourself with tons of knowledge on your market area.

To download the full market reports simply click on the images below to get the Metro Vancouver, Greater Vancouver, or, Fraser Valley reports.

If you’re watching this on Youtube, down in the description section is a link to a sample report which I send to my clients on a monthly basis. Feel free to review that and if it’s something you find of value, and trust me you’re going to love these reports, you can simply fill out your name and email address to start receiving the reports monthly.

What’s Coming?

Over the past 6-9 months we’ve seen townhouse and detached home prices steadily rising. What we could see over the coming months is condo prices taking off again as well.

With more and more people being vaccinated around the world and Canada having set huge targets for immigration over the next three years, the condo market could see a spike in demand this year causing prices to rise.

There are also Hong Kong residents who may decide to leave China due to an increasingly hostile government. If we see a major spike in their relocation to markets like Toronto and Vancouver it will have an impact on our real estate markets.

New Technology

How do you win in multiple offers if you’re a buyer right now? No doubt it is tough out there if you’re a buyer in today’s market. Multiple offers are the norm again and the best way for you to find the home you want and get your offer accepted is to work with an agent like myself who has a defined strategy when it comes to offer presentation.

With the strategies of many listing agents at the moment forcing all buyers into a compressed one or two days of showings and then looking at offers, most buyers are finding they are needing to make a lot of decisions in a very short period of time.

Here’s how I help my buyers navigate the buying process during these challenging times. First of all, we can’t even go out looking at homes if there is not a pre-approval for their mortgage in place unless they are cash buyers.

Second, I establish and build rapport with the listing agent if I don’t already have one and I try to gather as much of the documentation needed to do our due diligence ahead of time. A great listing agent helps facilitate this by having all of that documentation ready for agents and their buyers.

Third, I make sure to review the contract of purchase and sale ahead of time with my buyers so they understand what’s in the contract. I also created a terrific video explaining the contract of purchase and sale and you can check it out here.

Fourth, we come up with a game plan to have as few subjects as possible on the contract. Yes, it’s great if you can go subject-free but the reality is most buyers can’t. All lenders need to do their own appraisal of a property before they will fund a mortgage so most buyers need to have this subject in their contract of purchase and sale.

Having an inspection done on a property is also prudent due diligence for any buyer and one of the ways to eliminate this as a subject is to have a pre-inspection done on the property before offer presentation.

Fifth, when I submit the offer for my buyers I do so with a video email. I create a custom video for the listing agent and sellers that gives some insight and background about the buyers as well as the highlights of what is in the offer.

When the listing agent opens the video email it is quite often the first time they’ve ever received one and their response is always the same. They are both impressed and delighted. Because the video, offer, and any other documentation required are embedded directly into the email they are able to forward everything to the sellers.

I can’t tell you how many times I’ve helped my buyers win out in a multiple offer situation against subject-free offers even when they were not the highest price and they had subjects in their offer.

I was recently the listing agent for a property where a letter from the buyers and listing agent helped sway my seller into selecting their offer over others. These things work and if your agent tells you they don’t or it’s a waste of time, find another agent who’s willing to invest the time to make your offer stand out from the rest.

This holds true for subject-free offers as well. Just because you’re going in subject-free doesn’t mean your offer is a lock. There may be several subject-free offers presented so you need to make yours stand out without simply throwing more money at the seller?

Another thing agents overlook with subject-free offers is the deposit cheque. If your buyers have the deposit cheque in hand that is another great way to help tip the scales in their favour.

Having a strategy when listing a home is also as important. Some agents feel like they don’t need to do very much in a hot market like this because the home will most likely sell.

It’s true real estate agents don’t get paid until the home is sold. So, those marketing dollars come out of an agent's pocket upfront. That’s no excuse to not have professional photography done on your listing, or not have a professional floor plan created, or not have a cinematic listing video and virtual tour created for the listing.

Once that’s done, your agent needs to have a proven strategy for leveraging every social media platform in order to have a massive social media presence for your home.

If you are thinking of selling your home, be sure to reach out to me and let me show you how I market my listings like they’re an HGTV show and by doing so how I sell my client’s homes faster and for more money.

Now whether you’re planning on buying a home this year and especially if you’re selling your home, you want to have access to the most information and do as much research as possible. My website gives you all the tools you need to do just that.

On my website, not only can you search for homes in any area but you can also search for SOLD listing data for any area as well.

This is incredibly useful for both sellers and buyers. Down in the description below is the link to that functionality on my website. Make sure you check it out.