Vancouver Real Estate Market Update
A lot has happened in the Vancouver real estate market over the past 6 months. One of the biggest changes is that the attached/condo sector has shifted to a Seller’s market. As of July 2015 both the single family detached and the attached condominium markets are Seller markets. The two main factors continuing to driving the heated real estate market are the low interest rates coupled with a lack of supply. The total number of listings offered for sale in the single family detached housing market is down by 30% from June 2014 and the total number of listings offered for sale in the attached condominium market is down by 22% from June of 2014. This is resulting in multiple offers and sale prices over asking prices in all sectors of the market.
During the month of June, all of my listings generated multiple offers and sale prices substantially over the asking price. One of my listings received 12 offers after the initial 5 days of marketing with 8 out of the 12 offers being subject free with large deposits attached to the offers. I have only seen this type of market activity on two other occasions during my 28 years as a Vancouver real estate agent.
Low interest rates, lack of supply and strong demand have instigated increased prices through the first 6 months of 2015. The single family detached house has increased by 14% and the attached condominium market has increased by 6%. The total number of sales per month from April 2015 to June 2105 has been just over 4000 per month. The Vancouver Real Estate Board was established in 1919 and has only observed three consecutive months of 4000 plus sales once before; in 2005. With all this taking place the most commonly asked question is “is this sustainable or are we in a bubble”. In my opinion there are only two factors at this present time that will put downward pressure on prices: one being a rise in interest rates and the other being a substantial increase in the number of properties being listed in a similar timeframe.
One interesting note: in 2014 we witnessed for the first time in Vancouver real estate history, a single family detached East Vancouver house sell for over 2 million dollars. By the end of 2014, a total of 4 single family detached houses sold for over 2 million dollars. So far in 2015, a total 24 single detached houses on the East Side have sold for over 2 million dollars.
One important thing I have observed is that many agents are not taking the time to have their clients properties prepped, staged and marketed when they launch a new listing on MLS. These listings that have not been staged properly and coupled with poor marketing, receive far less attention than the properties that are brought to the market professionally. Agents who are rushing to get their clients properties listed on MLS are missing the opportunity to achieve unprecedented high selling prices for their clients. Prepping and marketing makes a huge positive difference in this type of market.
Buyers and investors must move cautiously in this market. It is incredibly important not to get caught up in this fast moving market. I have held clients back from purchasing properties that may prove to be unreliable investments in the not too distant future even though these listings may be getting multiple offers. This type of market requires patience and knowledge when finding the correct property.
If you would like any further info or if I can be of assistance to your friends or family please contact me.
Vancouver Lisitings and Sales Statistics for the month of June 2015
Absorption Rate is:
0 – 14% Buyers’ Market
15% – 20% Balanced Market
21% & Greater Sellers’ Market