Vancouver Real Estate Market Update For April 2021!

The highest monthly sales total ever recorded in our region. Yes, you read that correctly. We also had a record number of new listings but demand is so great in today's market it isn't allowing that new supply to accumulate. Watch the video.
The highest monthly sales total ever recorded in our region!

This is your Vancouver real estate market update for April 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.

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.

Alright, let’s dive into it. March sales were the highest monthly sales total ever recorded in the region. There was a 126.1 percent increase from the sales recorded in March 2020 to those recorded in March 2021 and a 53.2 percent increase from the homes sold in February 2021.

Last month’s sales were 72.2 percent above the 10-year February sales average and as I said, is the highest monthly sales total ever recorded in the region.

Through the month of March, residents bought and listed homes across our region at levels not seen before and this surge in activity is increasing upward pressure on prices. We’re seeing double-digit price gains for single-family homes and townhomes over the last 12 months.

Demand was most pronounced in rural and suburban areas. Delta – South saw a 195.8 percent increase in sales over 2020 – the largest increase in Metro Vancouver. This was followed by Whistler, which experienced a 194.7 percent increase, and Squamish, which saw a 188.6 percent increase in sales. 

While we did see a record number of listings enter the market last month, the demand in today’s market isn’t allowing that new supply to accumulate. As a result, the overall inventory of homes for sale decreased compared to last year.

What does this mean if you’re thinking of selling your home? Well, now is definitely the time to sell. But listen, as I’ve always said, it doesn’t matter what the market is doing, you should only buy or sell your home if you need to. If you are happy with your home and it suits all your needs, you probably don’t need to sell it. The same goes for buyers. If you don’t need to buy a home right now. Don’t. It may be easy to get caught up in the frenzy and fear of missing out but unless you have an urgent need to buy a home don’t worry about it.

A good question to ask yourself is this; How has the past year of the pandemic changed the way you think and feel about your current home? Drop your answers in the comments section below. I’d love to hear them.

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?

The OSFI recently announced they may be increasing the stress test yet again as early as the beginning of June. The current proposal would cut homebuyers buying potential by approximately 4.5%. This may not sound like much but in an already heated market where multiple offers are everywhere, this could be the difference for some people getting the home they really want or not.

This won’t affect every buyer. But if you’re looking to make a purchase over a million dollars with 20% down it will affect you. It does not affect you if you are buying a home with less than a 20% down payment or looking to switch your mortgage to another lender if your home value is less than 1M, with an amortization of 25 years or less.

Now there are lenders such as Credit Unions that don’t fall under the purview of the OSFI but I’ve already had clients, who have pre-approvals with some of these lenders, tell me they’ve been informed these lenders will most likely follow suit with the OSFI.

This move could push more buyers to make their purchase sooner rather than later and we could see the Spring market get even hotter.

New Technology

I talked about this in last month’s market update video and I feel it’s worth repeating since, you know, we’ve just had the highest monthly sales total ever recorded in the region. I also had a client mention it in a recent review they left on Google for me.

I’m talking about how do you win in multiple offers if you’re a buyer right now. 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, if they don’t already, I ensure my buyers have a pre-approval for their mortgage in place before we start looking at homes unless they are cash buyers. I work with some of the best mortgage brokers around the city and can easily connect you with one.

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 is 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.

If you’re selling your home soon, please, please, please make sure you hire an agent like me who has a robust marketing strategy. If your agent feels they don’t need to do a ton of marketing on your home because, “hey it’s a hot market and it will most likely sell,” then find another agent. Having a strategy when listing a home is just as important even in a hot market.

Us real estate agents don’t get paid until the home is sold. So, those marketing dollars come out of an agent's pocket upfront. Some agents feel like they can get away with spending fewer marketing dollars because it is a hot market. You and your home deserve the very best marketing there is. There should be no excuse to not have professional photography done on your listing, or not have a professional floor plan created, or not have a virtual tour or cinematic listing video 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.