For the month of August

Vancouver Real Estate Market Update

Traditionally August is the slowest performing month of the calendar year; yet, analysis of August statistics will usually predict how the Fall market will perform. Residential property sales for the month of August 2014 were active in most sectors and outperformed August 2013 by approximately 10%. The total number of listings declined, as expected, by approximately 15% when compared to July 2014. This is simply because many people chose to get out and enjoy the summer. This strong August performance points toward what should be a busy Fall market.

The following summaries discuss Vancouver’s market by area:

The Vancouver West detached housing market remains a sellers’ market.  There was good activity in almost all price ranges with the exception of the 8 to 10 million dollar price range (refer to charts below). The most active sales to listing sectors were the 1 to 1.5 million and the 7 to 8 million. One interesting note was the number of multiple offers on new listings slowed significantly resulting in only a few sale prices going over asking. This will be an interesting factor to watch closely on the West Side in the coming weeks.  The absorption rate is 16%; a decline from previous months.

The Vancouver West condo and townhouse market remains strong in all price ranges right up to 4 million dollars. The best performing sectors were the 400,000 to 500,000 price range and the 2 bedroom condo’s priced between 500,000 to 600,000 dollars. It is important to note that pricing remains critical in the Van West condo/townhouse market. I am seeing listings that are slightly overpriced sit on the market with little or no activity. This is due to having plenty to choose from in all price ranges. The absorption rate is 23%.

The Vancouver East Side housing market continues to be a Sellers’ market with extremely high demand in the Main, Fraser, Mount Pleasant and Grandview sub areas.  As I stated in my previous newsletters, these areas are what Kitsilano was in the 70’ and 80’s. The absorption rate remains slightly above 30%. A strong Sellers’ market continues. There was another sale above 2 million dollars located on the 100 block of East 17^th Avenue.  The house was a very unique new modern design on a 66×44 foot lot.

The Vancouver East condo and townhouse market remains strong yet correct pricing is critical. The condo market had steady activity right up to the 700,000 dollar price point. The half duplex and triplex townhouse market dominated the 700,000 to 1,000,000 price range representing a 100% of all properties sold in this sector. The absorption rate is 24%

Vancouver Listing and Sales Charts

Official Market Types according the Real Estate Board of Greater Vancouver and industry analysts:

0 – 14%                Buyers’ Market

15% – 20%           Balanced Market

21% & Greater      Sellers’ Market