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Celebrate Canada Day, Raptors, and Kawhi Leonard Habits

Market Updates | July 3, 2019

Happy Canada Day! As I write this, we are celebrating the birthday of our beautiful country. It is a spectacular, sunny, and gorgeous day on the West Coast. Parades, events, family gatherings, and fireworks that are planned to go off in the night sky later on; it does not get much better than this. We have so much to be thankful for in this great country of ours!

With celebrations happening from coast to coast today, I am reminded of the party that many Canadians participated in just a couple of weeks ago when the Raptors, and Canada, won their first NBA title. “We The North” is the slogan that defines the Raptors faithful, and even the not so faithful once the Raptors looked like they were on their way to becoming champions.

I am always amazed at how a sport can bring so many people together and make us feel like we are one. The Canucks marketing plays off this idea as well with their slogan, “We Are All Canucks.” Unfortunately, the slogan only works when the team is a winner; and for the Canucks, the hope of becoming champions has not been very believable for the last number of years. Maybe next year?

The overall theme here is celebrations: Canada Day, the Raptors becoming the NBA champion, and Kawhi Leonard’s habits. Leonard’s habits? How does this fit into celebrations? When we celebrate, we feel like winners. Think about it: when you are fully engaged in any sort of celebration, you feel like you are in a good place and that you are part of something much bigger than you could imagine on your own. Leonard brings this feeling to the Raptors with his work ethic and his drive to be the best he and the team can be without the stardom drama.

Leonard’s training, diet, and preparation habits for being the best he can be on the court are legendary. His discipline is unbelievable, but what fascinates me about Leonard is his discipline off the court. Leonard will earn between $30-40 million per season over the next 5 years, yet he still drives a vehicle he drove in high school. His level of discipline and frugalness is seldom seen in the NBA, or in most well-off or financially struggling individuals. When Leonard was questioned why he still drives the old vehicle when he is making millions of dollars per year, he said, “It runs … and it’s paid off.” He is right; a car is a depreciating asset that goes from $50,000 to $5,000 in 10 years or less.

I am a disciplined person, but what if I had Leonard’s discipline? What if we all applied this kind of financial discipline to our own financial affairs? Our financial well-being is not always a product of many small decisions, but often on two or three big decisions. Make sure the big decisions are appreciating assets. My biggest and best financial decisions have always been connected to real estate. Through my experiences, I do believe that the best appreciating asset is real estate.

So, are properties appreciating or depreciating? Is this the right time to be buying or selling? What happened in the June market? All great questions, but let us start with the market. June is typically is one of the biggest volume months of the year. Spring has sprung and gone, and the long selling days of summer have arrived. It is the final big push to sell or buy before the summer holidays of July and August hit.

June 2019 did not experience the typical volume of sales. However, the volume and STR (Sell Through Rate) in Greater Vancouver was certainly better than the previous month of May. Which is positive; however, the market struggled and fought its way through a buyers’ market with the odd area bouncing into a balanced market. The balanced portion of the market being the affordable townhomes and condominiums.

Across the Fraser River, the Valley market continues to outperform the Vancouver market like it basically has since this time last year. Much of the Eastern Valley is working through a balanced market and a few areas like Cloverdale experienced an exceptional month of being in a balanced to sellers’ market. The single-family homes, townhomes, and condominiums had a STR (Sell Through Rate) between 16-23%.

Is it time to buy or sell? Are properties going to continue to appreciate? I personally never believe in selling, so my advice is not to sell unless it is for an upgrade in the quality of the property, or it has better cash flow, or it has more future appreciation, or, or, or. I hope you get my point, property in the Vancouver and Fraser Valley will continue to be an appreciating asset. How much and when the appreciation will happen is above my pay grade, but I am confident it will happen. Sounds like it may time to look for good value in the market place and buy some more appreciating property.

Please reach out to our team for more information or help with all your real estate needs.

Click Below To See The Fraser Valley Stats For June:

Fraser Valley STR Stats

Click Below To See The Vancouver Stats For June:

Vancouver STR Stats

STR (Sell Through Rate) Formula = Sales ÷ Active Listings + Failed Listings + Sales

 

Randy Dyck
Personal Real Estate Corporation
604-807-4366 or randy@eximus.com