Another month where headline after headline trumpets the fall of the Vancouver Real Estate market – so, you might be interested to learn that it’s not Armageddon in our marketplace, after all.
Before we delve into that further, let’s look at the data.
How to read the chart:
- The numbers shown below are a ratio of the number of active listings (at end of month) over the number of sales in that month.
- Buyers’ Market = numbers above 7
- Sellers’ Market = numbers below 5
- Balanced Market = Anything between 5 and 7
- Beside the number is the direction the market moved when compared to the previous month
|Months Supply||Van West||Van East||North Van||Richmond||Burnaby||New West|
The two Vancouver markets
For those of you who read our market update regularly, you may be tired of hearing about our “two” markets – detached and attached. I’m going to belabor the point a bit because it has a lot to do with why we keep reading about a really slow market while at the same time experiencing multiple offers and/or properties selling before the first public open house.
A very simple way of looking at it is that the higher the price point, the more the market has slowed – or, put another way – the luxury end of the market has been hit hard by the slowdown (and is thus where we’ve seen the greatest price decreases), whereas the entry level price points have remained strong. The obvious corollary to this is that the detached market has seen far more substantial price declines than attached. As importantly, the result this has on the statistics is skewed partially because of the sheer magnitude of the numbers (a 10% hit on a $5 million penthouse is a full 100% of the price of a newer one bedroom condo).
What does this mean for you?
For the most part, condos and townhouses under $1 million are still very busy and active. Indeed, one of our buyers was in multiple offers on an entry-level two bedroom as recently as last Friday night. Also, there was a one bedroom in Mount Pleasant a couple of weeks ago that saw seven offers and sold for $51,000 over list price. However, these stories are no longer the norm and for the most part, we’ve seen a return to more typical Vancouver market conditions (which means it is still significantly busier than many other North American real estate markets) and buyers are once again able to shop for a home at a reasonable pace and write offers with subjects!
To hear what’s happening more specifically in your neighbourhood and product type, please don’t hesitate to give us a shout.