The craziness of the Vancouver market is back. Mostly.
Before we talk specifics, let’s look at the data. The numbers shown are a ratio of the number of active listings (at end of month) over the number of sales in that month. Numbers above a 7 are considered to be buyer’s markets, below a 5 are seller’s and in-between are considered balanced. Beside the number, I’ve indicated the direction the market moved when compared to the previous month.
|Months Supply||Van West||Van East||North Van||Richmond||Burnaby||New West|
Attached Home Prices Keep Climbing
With a quick glance, one can see that the attached and condo ends of our market continue to be frantic. The ongoing lack of inventory is being felt most critically in this segment across the region and the pressures are causing prices to climb – specifically, we’ve seen pricing on condos move up in price 8% over the last 4 months and townhouses have followed a very similar trajectory. Our buyers in this segment have found the market challenging. We’ve seen a 550sf condo in a 33 year old building attract 8 offers and sell for $86,000 over asking, a 912 sf 2 bedroom in a 15 year old building attract 5 offers and sell for $117,000 over asking, and an 1800sf townhouse attract 7 offers and sell for $201,000 over asking.
Detached Homes More Balanced
Fundamentally, sustained seller’s markets cause prices to go up and sustained balanced markets cause prices to stagnate. So, it should come as no surprise that prices of detached homes have essentially stagnated over the course of this calendar year. Depending on the region, they may be up by 2% to 3%, but the craziness hasn’t been as evident in this market, by any means. In this segment, multiple offers have been happening, but they haven’t been automatic. Some of our recent detached sales have had a negotiation, a subject period and sales prices below asking prices!