IN THIS ISSUE:
IN THIS ISSUE:
• Market activity coming from pent-up demand • Just for seniors: staying in home and community
• New reasons for having house with an office • April's REBGV report: activity down, prices stable
Pent-up demand feeding ‘new’ real estate market
Last month, the market update in News From Nexus was this: “It’s not business as usual, but business is happening.”
This month, it’s the same story.
These facts from April explain it best:
In April, a Vancouver property listed at $2.2 million received 19 offers and sold for $250,000 over the asking price. Another property, a condo priced at $499,000, also attracted multiple offers and sold quickly. A number of properties in North Vancouver are attracting multiple offers.
Why?
Here’s one theory:
There’s a pent-up demand. Buyers have been waiting through the soft-market times of 2018/2019 for the right time to jump into the market. Perhaps realizing there is considerable activity, they’re ready to buy. Their pent-up demand — the indicators were there in the three or four months leading up to the pandemic — appears to have more depth and activity than what many real-estate observers realized.
Of course, three properties selling with multiple offers is a small sample size.
It does show, however, that “business is happening.”
See photos and preliminary details at end of newsletter
The real estate market, like the rest of life, is different now. Everybody is thinking through the logistics and dynamics of how to do business in this new atmosphere. That applies to buyers, and sellers, and realtors who are working through the protocol for fully accommodating the
guidance from the public health authorities, while at the same time finding ways to get people the information they need to make judgments about real estate in their lives.
The volume of listings is down and so is the volume of sales. But the demand is there for real estate, which is an essential service in British Columbia because people continue to need shelter and a home, so real estate is going to survive. Adding different, creative ways to connect people and properties is going to enhance realtors’ ability to communicate with clients in the future.
It’s likely that real estate will be neither a big winner nor a big loser in the COVID-19 era, but there is and will probably continue to be a shortage of ‘in demand’ properties to attract the pent-up demand of buyers.
So yes, business is happening.
‘Suitable for Seniors’ — community is key
The idea of hands-on care for Grandma and/or Grandpa, rather than have them living in a long-term care home, is more acceptable and prevalent than ever in Canada. It has long been accepted in other countries, by other cultures, as just a part of life. In News From Nexus, a three-part series will explore options for seniors living in a single-family dwelling, a multi-generation setting and in an apartment building.
First in a seriesMore than two decades ago, when the matriarch of our family was approaching 80, we decided it was time to secure that she could continue living in her home and stay part of her community as she aged. This was in small-town Saskatchewan, it meant building her a new home, a process that was supervised from 1,500 kilometres away. While she doesn’t live in the home any more (she’s almost 104), she still spends time there, still able to be part of her community.
The house was — and still is — “suitable for seniors.”
Here is some of what makes it suitable for seniors:
• There are no stairs.
• The door handles are all levers that don’t have to be twisted to open.
• The bathroom is wheelchair-accessible.
• Parts of the counters were dropped to table height, making it a comfortable place to sit, to write letters, watch TV, prepare the vegetables or just be part of the community on the other side of the windows.
Even though the house was designed with help from a draftsman and a gerontology adviser, the key was still “community.” The house was near
the town's heart, across from the post office, where there is people watching aplenty. She lived in it for two decades, and they were 20 of the best years of her life.Now, building in a town of 3,000 people is decidedly less complicated than building anywhere on the Lower Mainland, but the concept is still a plausible one.
For seniors who are still able to live in “their" home, making it “suitable for seniors” will mean having a home designed to be functional as they age and can't do as much — a home that's safer, more practical and more comfortable. Part of being comfortable is remaining in the familiar surroundings of “their community.”
For seniors unable to stay in their home, another option could be to use some of the proceeds from selling it for an addition to a child’s home, a place where a family’s seniors can live and maintain their independence while being close enough to family support and remain part of “a community.”
A third option is to build a laneway house, or find one and make it “suitable for seniors” because throughout the Lower Mainland the concept of having more than one residence on properties is becoming more allowable by cities that need to find more affordable housing.
“Dale and Jennifer showed us 24 possibilities. After the 24th place, I’d kind of given up. It was my birthday, Gary was in the hospital and Dale called and said I really needed to see this last one…it was different. I had no interest, but the minute I walked in I knew! That was because of Dale. Their knowledge and experience was so important.”
— Judy and Gary Grafton, West Vancouver
REBGV's statistics: April — sales, listings down but not prices
The monthly news release from the Real Estate Board of Greater Vancouver is always based on facts, because it’s all about statistics, and statistics are facts.
Two facts stand out from the April release.
One, both sales and listings are down dramatically, which was expected in the second month of a pandemic.
Two, house prices are stable.
“Home prices have held relatively steady in our region since the COVID-19 situation worsened in March,” the REBGV said in its monthly release.
Of course, the REBGV's region is general, as it covers the entire Greater Vancouver area, and not all the micro-market segments that may be unique to specific demographics, geographic or prices.
As for listings and sales, it stands to reason that if there are fewer listings, clearly there will be fewer sales. And having a dearth of listings is, for the seller, a good thing because there is less competition for the buyers who are looking, and the buyers — as you will read elsewhere in News From Nexus — are being driven by a pent-up demand that predates the pandemic.
That’s why the MLS® benchmark price of $1,036,000, for all residential properties in Metro Vancouver, is up both from last April (2.5 per cent) and from last month (0.2 per cent).
One, both sales and listings are down dramatically, which was expected in the second month of a pandemic.
Two, house prices are stable.
“Home prices have held relatively steady in our region since the COVID-19 situation worsened in March,” the REBGV said in its monthly release.
Of course, the REBGV's region is general, as it covers the entire Greater Vancouver area, and not all the micro-market segments that may be unique to specific demographics, geographic or prices.
As for listings and sales, it stands to reason that if there are fewer listings, clearly there will be fewer sales. And having a dearth of listings is, for the seller, a good thing because there is less competition for the buyers who are looking, and the buyers — as you will read elsewhere in News From Nexus — are being driven by a pent-up demand that predates the pandemic.
That’s why the MLS® benchmark price of $1,036,000, for all residential properties in Metro Vancouver, is up both from last April (2.5 per cent) and from last month (0.2 per cent).
How long will that last? Who knows?
The sales-to-active listings ratio for April 2020 is 11.8 per cent. By property type, it’s 10 per cent for detached homes, 14.7 per cent for townhomes, and 12.4 per cent for apartments. Analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The key words to remember are “sustained period” of “several months.”
Because of COVID-19, the statistical comparisons to last April are understandably worlds apart. Sales were down 62.7 per cent below the 10-year April average and the lowest total for April in 38 years. Residential home sales for the entire region were 1,109, a 39.4 per cent decrease from April 2019, and a 56.1 per cent decrease from March 2020.
“People are, however, adapting,” the REBGV added in its release. “They’re working with their realtors to get information, advice and to explore their options so that they’re best positioned in the market during and after this pandemic.”
The long-term effects of COVID-19 are just like the pandemic itself.
Unknown.
The sales-to-active listings ratio for April 2020 is 11.8 per cent. By property type, it’s 10 per cent for detached homes, 14.7 per cent for townhomes, and 12.4 per cent for apartments. Analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The key words to remember are “sustained period” of “several months.”
Because of COVID-19, the statistical comparisons to last April are understandably worlds apart. Sales were down 62.7 per cent below the 10-year April average and the lowest total for April in 38 years. Residential home sales for the entire region were 1,109, a 39.4 per cent decrease from April 2019, and a 56.1 per cent decrease from March 2020.
“People are, however, adapting,” the REBGV added in its release. “They’re working with their realtors to get information, advice and to explore their options so that they’re best positioned in the market during and after this pandemic.”
The long-term effects of COVID-19 are just like the pandemic itself.
Unknown.
Having a home suited for working from home
The phrase “work from home” has exploded into daily conversations — it even has its own acronym (WFH) — because that’s what so many people have to do to help prevent the spread of COVID-19. And WFH belongs in real estate conversations, too.
Buyers looking for a house with a built-in home office may now want it more out of necessity than because “it-would-be-nice-to-have-one.” While the future is uncertain, it appears likely more people now will work from home, at least part of the time.
Sellers always do everything possible to attract buyers. Having a home office — or at least a place where one could be converted — may become more important than ever in making a house appealing to buyers. Creating one before listing the property could be a helpful strategy.
Here are some things to keep in mind if you’re creating a place to work at home…
Size: Whether it’s for a work station or to accommodate the accessories you need when working (printer, books, coffee machine, etc.), have a place that doesn’t feel cramped.
Natural light: It’s never a bad thing to work with at least some natural lighting and if there’s a nice view through the window, so much the better.
Privacy: An open space may be visually appealing but having a door to close can be a necessity for privacy when on the phone, or just to think with a clear mind, or to prevent interruptions from kids and pets.
Having a place to WFH is often a luxury for people accustomed to working at the office.
Now it can be a necessity.
Buyers looking for a house with a built-in home office may now want it more out of necessity than because “it-would-be-nice-to-have-one.” While the future is uncertain, it appears likely more people now will work from home, at least part of the time.
Sellers always do everything possible to attract buyers. Having a home office — or at least a place where one could be converted — may become more important than ever in making a house appealing to buyers. Creating one before listing the property could be a helpful strategy.
Here are some things to keep in mind if you’re creating a place to work at home…
Size: Whether it’s for a work station or to accommodate the accessories you need when working (printer, books, coffee machine, etc.), have a place that doesn’t feel cramped.
Natural light: It’s never a bad thing to work with at least some natural lighting and if there’s a nice view through the window, so much the better.
Privacy: An open space may be visually appealing but having a door to close can be a necessity for privacy when on the phone, or just to think with a clear mind, or to prevent interruptions from kids and pets.
Having a place to WFH is often a luxury for people accustomed to working at the office.
Now it can be a necessity.
That the 50,000-square-foot home built over six years by Toronto-born rapper Drake,
who wants it to stand for 100 years and be “one of the things I leave behind” in his hometown,
includes a master bedroom that costs more than most people’s house, according to a photo
spread in Architectural Digest?
Real Estate Monthly Statistics
The following statistics for West Vancouver, North Vancouver, Vancouver West and Vancouver East compare April 2020 to April 2019 (note: sales refers to number of sales, not to sale prices).
Benchmark Price: Estimated sale price of a benchmark property. Benchmarks represent a typical property within each market. To see more information on local stats, please Click Here.
• Roche Point area, North Vancouver • 4 bedrooms • 4,200 square feet
• Mortgage helper in-law suite • Near Cates Park
Have you found interesting and informative things to do online when isolated? Maybe you have some that we haven't thought of, so please let us know and we'll add them to our list.
We've added a few to go with last month's suggestions:
Vancouver Aquarium Live Cams
Otters, Penguins, Jelly Fish
BC Winery Virtual Tours
North Shore Artists’ Guild
Virtual Art Sale
https://nsartists.ca/show/2020_virtual_spring_art_sale/0
https://nsartists.ca/show/2020_virtual_spring_art_sale/0
Vancouver Art Gallery
Art Connects — a series of online gatherings that encourage dialogue and connection in the era of physical distancing.http://www.vanartgallery.bc.ca/exhibitions/art-connects
Every Tuesday and Friday, the Gallery will stream live and interactive conversations into your homes, featuring guests from local and international arts communities. Everyone is invited to join via Zoom.
Play: Kids Yoga Day
Kids and parents: ready to move and have fun together!Connect with Family and Friends
To connect with family and friends you can use Facebook, Messenger, FaceTime, Google Duo or Hangouts, Zoom, Instagram Video Chat, Snapchat Video and Chat, Skype, WhatsApp…the list is long. Check with family or friends and decide which is the best way to connect. Tired of Cooking?
Many restaurants are offering take-out. Breaking Bread Now provides a list of restaurants in different areas with take-out meals breakingbreadnow.com/.
On Facebook there is a group called Support Local Business which supports local restaurants and businesses and gives them and others the opportunity to spread the word. Maybe your area has a similar Facebook group:
https://www.facebook.com/groups/290321101944891/.
https://www.facebook.com/groups/290321101944891/.
Need some culture or learning in your life?
Go to a virtual museum — you’ll find a lot of them through Google: https://artsandculture.google.com
And for Canadian museums: http://www.virtualmuseum.ca/virtual-exhibits/type/virtual-exhibits/
Go to a virtual opera: https://www.metopera.org/
You can even take a virtual tour of The Louvre in Paris: www.louvre.fr/en/visites-en-ligne#tabs
Visit the Science Centre: www.scienceworld.ca/
Nature web cams can be fun to watch. explore.org/livecams
Go to a virtual museum — you’ll find a lot of them through Google: https://artsandculture.google.com
And for Canadian museums: http://www.virtualmuseum.ca/virtual-exhibits/type/virtual-exhibits/
Go to a virtual opera: https://www.metopera.org/
You can even take a virtual tour of The Louvre in Paris: www.louvre.fr/en/visites-en-ligne#tabs
Visit the Science Centre: www.scienceworld.ca/
Nature web cams can be fun to watch. explore.org/livecams
Search for lots of free learning programs for kids and adults online.
Visit your Library for virtual programming
westvanlibrary.ca/
www.nvcl.ca/
nvdpl.ca/
www.vpl.ca/digitallibrary
Here is a link to some free exercise programs posted on CBC: www.cbc.ca/life/wellness/these-are-the-free-no-equipment-online-fitness-classes-you-need-right-now-1.5500751
Many exercise, yoga or meditation videos are available on YouTube.
www.nvcl.ca/
nvdpl.ca/
www.vpl.ca/digitallibrary
Need some exercise?
Go for a walk and get some fresh air if you’re healthy and following physical distancing.Here is a link to some free exercise programs posted on CBC: www.cbc.ca/life/wellness/these-are-the-free-no-equipment-online-fitness-classes-you-need-right-now-1.5500751
Many exercise, yoga or meditation videos are available on YouTube.
