Vancouver Real Estate Market Update
Every sector of the residential real estate market is extremely busy. The total number of residential property sales in January 2016 was 31.7% more than the month of January 2015. In fact, the total number of sales for January 2016 was 46% above the ten-year average and ranked the second highest January on record.
Conversely, the total number of properties listed for sale in January 2016 were 38.6% less than January 2015. This basic economic supply versus demand fundamental is fueling an already heated Vancouver real estate market. The overall absorption for Vancouver real estate market is 38%. This indicates a very strong seller’s market.
In January 2015 I wrote about the Vancouver East ½ duplex market and predicted that we would see prices rise through the year. This was primarily due to the gap in the ½ duplex average price per square foot compared to the median price of the detached single family house in Vancouver East. This proved true; by year end, the dollar per square foot on ½ duplexes had risen sharply. Now in February 2016, I am seeing a large gap in average price per square foot of condominiums compared to that of ½ duplexes and detached houses. I believe we are going to have a sharp increase in the dollar per square foot in well located condominiums. I am already seeing this with my condominium listings whereby I am receiving multiple offers and sale prices way over asking on the first weekend of showings. Currently, almost every well located condominium listing priced under 1 million is receiving multiple offers and sale prices over asking. I strongly believe that condominium prices will rise through 2016. Rents have become so high in Vancouver many individuals are finding it cheaper to own if the they have the means to a down payment.
Please refer to charts below for price, type and location statistics.
Absorption Rate:
0 to 14% Buyers Market
15 to 20% Balanced Market
21% & Greater Sellers Market
