Do you want content like this delivered to your inbox?
Share
Share

What Changed in the First Quarter of 2021?

AJ Hazzi

After becoming a Realtor® in 2002, AJ Hazzi noticed a gap in the market and in 2008 he founded Vantage West Realty, a boutique firm dedicated to serv...

After becoming a Realtor® in 2002, AJ Hazzi noticed a gap in the market and in 2008 he founded Vantage West Realty, a boutique firm dedicated to serv...

Apr 15 4 minutes read

Here’s how things changed over the past year in our real estate market.

Now that April is here, it’s time to look back over our first quarter in today’s Q1 Vantage Report. 


First of all, our market is blazing hot—we haven’t seen anything like this since 2007. However, we have even less inventory today. Our current buyer situation is also reminiscent of 2007, when there were many offers on each listing and buyers had to offer well above list price.


In our first quarter, sales were up 220% compared to the same time last year. This is a huge jump, and we haven’t even hit the spring market yet. Additionally, sales volume has risen by 300% because more homes are selling and average transaction values have increased. The average home price is just over $700,000—a 25% increase from last year.


The average size of properties increased last year, but it has since leveled off. In fact, it’s a few points lower than it was last year. This is where affordability intersects with desire; people are opting for bigger homes if they can, but because prices have increased, budget constraints are preventing buyers from getting more square footage.


Last year, homes were selling for about a 3% discount. This year, discounts have basically gone away, and average sales prices are sticking around 100% of the average list price. Luxury home sales have exploded by nearly 600% since last year. This is because people are fortifying, and Vancouver residents are migrating here due to their market.



"We’re still in a hot market, but it may cool off with policy changes arriving in June."


Even though we keep hearing about low inventory, new listings increased by 17% from last year. Some had thought people were unwilling to list, but it turns out lots of homeowners are opting to cash in. Still, in my 20 years of working in real estate, I’ve never seen inventory levels so low. We’re down to almost one month of inventory; last year, we had six months. These changes correlate to costs because as inventory levels drop, prices increase.


Many people are wondering when the pendulum will swing back toward buyers. Well, the government recently released a plan to make qualifying more difficult starting in June. This will hurt a buyer’s borrowing power, and combined with high home prices, it may push many buyers out of the market. 


Sellers may try to list their homes immediately to avoid this, and they might try to overprice their homes while the market is hot. In these instances, the home may not sell, which might bring our market to the tipping point. We’d leave the super-hot market and go back into a more balanced one. I don’t see a major correction happening this summer, but hopefully things begin to cool down soon.


Measures to create transparency in the bidding process are also being considered right now. Otherwise, people are stuck spending $50,000 more than they need to because they’re afraid of missing out on the home. These measures worked well in Ontario, so they may be adopted here as well. 


To summarize, we’re still in a hot market, but it may cool off with policy changes arriving in June. Still, buyers could be forced out of the market if they wait too long, so now may still be the best time for both buyers and sellers to jump in. If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.





Selling Your Home? 

Get your home's value - our custom reports include accurate and up to date information.

Get Home Value
We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info

Terms of Use

This website is operated by Vantage West Realty Inc./AJ Hazzi, REALTOR®, a Brokerage who is a member of The Canadian Real Estate Association (CREA). The content on this website is owned or controlled by CREA. By accessing this website, the user agrees to be bound by these terms of use as amended from time to time, and agrees that these terms of use constitute a binding contract between the user, Vantage West Realty Inc./AJ Hazzi, REALTOR®, and CREA.

Copyright

The content on this website is protected by copyright and other laws, and is intended solely for the private, non-commercial use by individuals. Any other reproduction, distribution or use of the content, in whole or in part, is specifically prohibited. Prohibited uses include commercial use, “screen scraping”, “database scraping”, and any other activity intended to collect, store, reorganize or manipulate the content of this website.

Trademarks

REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA’s By-Laws, Rules, and the REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the professional real estate services provided by members of CREA.

Liability and Warranty Disclaimer

The information contained on this website is based in whole or in part on information that is provided by members of CREA, who are responsible for its accuracy. CREA reproduces and distributes this information as a service for its members, and assumes no responsibility for its completeness or accuracy.

Amendments

Vantage West Realty Inc./AJ Hazzi, REALTOR® may at any time amend these Terms of Use by updating this posting. All users of this site are bound by these amendments should they wish to continue accessing the website, and should therefore periodically visit this page to review any and all such amendments.