It’s a Hot One!
I was recently reading previous blog articles I had written over the past few years regarding Canada Day. As I was revisiting these articles, I was reminded about my love of being a Canadian. What an amazing country we live in! From the sheer beauty, universal healthcare, social infrastructure, the diversity, and the opportunity of home ownership, Canada truly is a wonderful country.
On previous Canada Days, our company would be in the Abbotsford Canada Day Parade with our wrapped vehicles, handing out hundreds of thousands of candies to the masses that would line the street. Unfortunately, we are not quite ready for the post-Covid celebration; but celebrations of this magnitude appear to be just around the corner. I am sure that next year’s celebration will be epic!
While reading previous articles, July 2016 jumped out at me; not because of the weather, which was cool and rainy in 2016, but because of the super-hot real estate market. I had forgotten how crazy the market was in 2016. In that article, I wrote, “Personally, in my 24 years as an agent, I have never experienced the intensity of the market such as it has been over the last 6 months.” Here we are five years later, and I could be writing the same sentence. The first six months of 2021 are literally a carbon copy of 2016 when comparing the STR (Sell Through Rate) numbers and the intensity of the market.
Have a look at the comparison numbers from 2016 to 2021:
The top 3 STR numbers in the Greater Vancouver :
2016 2021
DETACHED
North Vancouver 37% Port Coquitlam 28%
Port Coquitlam 31% Port Moody 28%
Coquitlam 30% North Vancouver 27%
TOWNHOMES
Port Moody 54% Squamish 47%
Port Coquitlam 51% Port Coquitlam 41%
North Vancouver 48% Whistler 39%
CONDOS
North Vancouver 56% Squamish 46%
Port Coquitlam 54% Tsawwassen 36%
Burnaby and E-Vancouver 49% Port Coquitlam 34%
The top 3 STR numbers in the Fraser Valley :
2016 2021
DETACHED
Langley 48% Mission 38%
Maple Ridge 46% Maple Ridge 34%
Chilliwack 43% Langley 34%
TOWNHOMES
Langley 67% Maple Ridge 45%
Cloverdale 65% Chilliwack 44%
White Rock/Chilliwack 54% Cloverdale 43%
CONDOS
Cloverdale 53% Cloverdale 54%
Langley 50% Maple Ridge 42%
White Rock 40% Chilliwack 38%
The shocker for me when looking at these stats was the significant change in the HPI (Housing Price Index) between the two markets. HPI is based on the value home buyers assign to various housing attributes, which tend to evolve gradually over time; therefore, it provides an “apples to apples” comparison of home prices across the market. HPI does not look at average or median prices, but rather, it looks at housing like a consumer index. The HPI for a home in the Fraser Valley in June of 2016 was $653,401, while the HPI for June of 2021 is $1,044,500! (check number) That is almost a $400,000 increase in just five years!
Where does this appreciation or inflation stop? Or does it? The following quote by James Cook sums up how I feel for buyers trying to get into the market: “Inflation makes the wealthiest people richer and the masses poorer.” Unfortunately, this is what is happening not only on the West Coast, but throughout Canada. The market across Canada is pricing the non-homeowner out of the market. My hope is that Canada, the government, and developers can be creative and keep the dream of home ownership alive for all Canadians.
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:
Click Below To See The Vancouver 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
