Vancouver Real Estate Up 20% Over Last Year
October Market Update - Vancouver Real Estate
We are on the cusp of change here in our market. Attached product above $400k is sitting longer than normal and single offer sales are now the norm. The attached $500k and especially $600k product is showing signs of cooling off. Prices are still stable but activity is down, and duration on market is increasing for these ranges. Detached houses above $1.5M have slowed somewhat on the Westside. Negative US market media, affordability questions, and oversupply are the main reasons for this cooling off period in mid to higher end product ranges. Entry to mid level product in both attached condominiums (<$400k) and detached housing (<$1.5M) remains strong and very active with multiple offers and above list price sales still common.
| A | B | C | D | E | F | G | H | I | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Vancouver | Aug-06 | Aug-05 | % | YTD 2006 | YTD 2005 | % | ||
| 2 | |||||||||
| 3 | Units Sold | 2,697 | 3,674 | -26% | 26,016 | 28,999 | -10% | ||
| 4 | Active Listings | 10,714 | 9,283 | 15% | |||||
| 5 | Average Price | $519,800 | $443,500 | 17% | $501,500 | $417,500 | 20% | ||
| 6 | Apt. Prices New | $397,700 | $410,900 | -03% | $416,200 | $364,700 | 14% | ||
| 7 | Apt. Prices Used | $347,700 | $271,000 | 28% | $323,100 | $261,200 | 23% | ||
| 8 | Det. Prices New | $832,800 | $615,600 | 35% | $822,700 | $652,200 | 26% | ||
| 9 | Det. Prices Used | $742,000 | $606,300 | 22% | $702,600 | $566,100 | 24% |
As can be seen by the above statistics, overall average price year-to-date is up in Vancouver 20% over last year, whereas the overall number of sales is down by 10%. New house prices are up a record 26% over last year with pre-owned houses a close 24%. New apartment pricing is up only 14% due to oversupply while pre-owned apartments are up by an impressive 23%.
The statistics show we are showing lower volume (no. of sales), higher pries, and increasing number of active listings. The present cooling in the upper end market is a welcome sign and will allow the market to re-adjust and normalize again. This breather is not expected to last long however. With inflation rates low in Canada, the Bank of Canada is expected to lower rates further due to the strong Canadian Dollar weighing heavily on non-resource exporters. Predictions are that prime may fall from the current 6% to as low as 5.25% by June 2007. Lower interest rates for variable and fixed mortgages are expected to follow keeping rates low for the rest of 2006 and throughout 2007, supporting a strong real estate market.
Marty Pospischil