Vancouver Real Estate Market Update
The Real Estate Board states “June sales-to-active-listings ratio sits at 21.30% absorption rate in Greater Vancouver, and that this is the second straight month the absorption rate has been over 20%”. The 20% absorption rate is calculated for the entire Lower Mainland. Certain sub areas of Vancouver detached housing market are out performing the 20% absorption rate. In fact the Main, Fraser, Mount Pleasant and Grandview sub areas have a 40% absorption rate. There continues to be two very separate performing markets between the attached condo market and the detached housing market. The price spread between these two markets is continuing to increase.
The following summaries discuss Vancouver’s market by area:
Vancouver West Detached
The Vancouver West detached housing market remains a sellers’ market. The overall absorption rate is just over 20%. The busiest sector continues to be in the 1.5 to 3 million price range. Decent houses priced between 1.4 to 1.6 on a 33 x 122 foot lot that have a mortgage helper in the basement but need a renovation are receiving multiple offers and at times selling over asking. There continues to be a high percentage of properties selling to off shore buyers. Kitsilano is the only sub area that has a much higher percentage of local buyers.
Vancouver West Attached
The Vancouver West condo townhouse market is very active with a 22% absorption rate. There is very good activity in all price ranges but pricing remains critical. If a listing is even slightly over priced it will sit on the market with no activity. This is simply because there is plenty to choose from in all price ranges.
Vancouver East Detached
The Vancouver East Side housing market continues to be extremely strong. The overall absorption rate is 35%. Good listings in sought after areas are receiving multiple offers and sale prices over asking on the first weekend of showings. The main reason is a continued lack of good product offered for sale. Secondly is that 1.4 million may buy a fixer upper in Kitsilano but that same 1.4 million will buy a beautiful character home in a wonderful neighbourhood on the East Side. Hence, the East Side is highly sought after by young families wanting a good detached house.
Vancouver East Attached
The best performing sector is the ½ duplex market. A buyer can purchase a less than 5 year old 1400 square foot, 3 bedroom, 3 bathroom ½ duplex townhouse with its own yard for approx $800 to $900 thousand. That same money will only buy you a small fixer upper detached house on the East Side. The condo market is active with a 22% absorption rate. Most of the activity is in the sub $550 price range.