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Smoke & Mirrors! Look a Little Deeper!

Blog by Brent Eilers | January 18th, 2021

It is always interesting to hear the wide range of statistical information which is often released on the various outlets online or in the media. Prices and sales up or down...always broad general statements across the whole Greater Vancouver area. If you are selling your waterfront home in West Van, why do you care what Downtown condos are doing? If you sold your North Van townhome, why do you get lumped in with all the "homes sold" in Vancouver? It is very important that you get relevant factual information for your area, product type, and price range.

Further, hearing sales and listings compared to last month or last year may make you feel good, but will provide very little evidence of what the market is really doing compared to historical norms. For instance, 2019 in North Vancouver was reported as a dramatic +19% sales increase over 2018. (YahHoo!) However truthfully, sales were down -32% from historical norms. In fact, 2018 was the worst sales year since 1983 so almost any total in 2019 would have beaten it. If you were a seller or a buyer in 2020, don't you think that information might have been valuable to your planning?

2020 was yet another strange year in many areas of Greater Vancouver. The first six months most sellers struggled to get their homes sold, the last six months was very active and there were many multiple offers. Please note though that this demand and inflationary cycle was caused in many cases by a lack of inventory as opposed to a greater Buyer demand. In fact, in many areas where the average price of the community was over $2.0 mil, total sales continued to really struggle.

The moral of the story is don't believe everything you hear, especially if it does not quite seem right or seems maybe too good to be true. It is critical in Real Estate that you get properly informed...I can do that. Please call me anytime...Brent