Vancouver Real Estate Market update
The Vancouver real estate market shows no sign of slowing down. August 2015 stats indicated a 30% increase in the number of sales compared to August 2014. This momentum carried through into September 2015 resulting in a 14.5% increase in the number of sales compared to September 2014. In fact residential home sales have been 25% to 35% above the ten year sales average for every month in 2015. The current conditions of the Vancouver real estate market have put upward pressure on home prices. The benchmark price for residential properties in Metro Vancouver is up 13.7% to date from September 2014. At this time there is no indication of the market slowing down.
Vancouver West Detached
The Vancouver West detached housing market continues to be a sellers’ market. The busiest price range for a single detached house was in the 2 to 3 million dollar range with a total of 51 sales for the month of September and an absorption rate of 30%. The 3 to 4 million dollar price range was the next busiest with a total of 34 sales and an absorption rate of 18%. The 1 to 2 million dollar price range had an absorption rate 45% which resulted in many multiple offers and sale prices over asking.
Vancouver West Attached
The Vancouver West condo and townhouse market is busy, very busy, and is a sellers’ market in all price ranges right up to 5 million dollars. The most active price range is between $300,000 to $700,000 with an absorption rate of 49% to 58%. This is resulting in multiple offers and sale prices over asking on good units in good buildings. The overall absorption rate is 38%. (see chart below)
Vancouver East Detached
Main, Fraser, Mount Pleasant and Grandview neighbourhoods continue to be a sellers’ market with many multiple offers and sale prices over asking. The 1 to 1.5 million dollar price range has an absorption rate of 48%. This strong sellers’ market is a result of a lack of listings which has been the trend for all of 2015. The overall absorption rate for a single family detached house on the East Side is 36%. (see chart below)
Vancouver East Attached
The Vancouver East attached condo and townhouse market is extremely busy. The overall absorption rate is 47%. Due to record low interest rates it can be cheaper to own than to rent a condo on the East Side. I am witnessing 1 bedroom condos renting for $1700 per month and 2 bedroom condos renting for $1950 to $2150 per month rent. Those that have the minimum down payment per month are choosing to buy rather than to rent.
Absorption Rate is:
0 to 14% Buyers Market
15 to 20% Balanced Market
21% & Greater Sellers Market
