Vancouver Real Estate Market update
The Vancouver real estate market continues to be a Sellers’ market as we approach winter 2015. Continued low interest rates, lack of listings, strong demand and foreign investment are the four main factors responsible for record sale prices. Vancouver to date has the lowest active listings total since December 2010. The overall absorption rate (sales-to-active-listing-ratio) for Vancouver for October 2015 was 38.1 per cent. This high absorption rate (Charts below) is continuing to place upward pressure on sale prices.
Vancouver West Detached
The Vancouver West detached housing market continues to be a sellers’ market in all price ranges with an overall absorption rate of 28.67 per cent. This is a 19.62 per cent increase from September of 2015. The most active price range was the 3 million to 3.5 million. All properties listed from 1 million to 1.75 million sold in October with an absorption rate of 100 per cent. There were a total of 14 listings sold out of 151 listings above 5 million with an absorption rate of 9.27 per cent.
Vancouver West Attached
The Vancouver West condo and townhouse market continues to be a sellers’ market. The overall absorption rate 39.77 per cent. The most active price range was the 600,000 to 700,000 with an absorption rate of 65.45 per cent. With rents achieving unprecedented levels I am witnessing a higher than normal percentage of investors purchasing 1 and 2 bedroom suites in good buildings. 1 bedroom apartments are renting for $1600 to $1750 per month and 2 bedroom apartments are achieving rents from $2000 to $2500 per month. High rents and low interest rates are making apartments in solid buildings good holding properties.
Vancouver East Detached
The Vancouver East detached housing market continues to be one of the hottest markets in all of Vancouver. A few of the new listings in the Main, Fraser, Mount Pleasant sub areas are receiving 20 plus multiple offers on the first weekend of showings. A common feature all these listings have is a secondary suite as a mortgage helper. The overall absorption rate for October 2015 is 43 per cent up from 36.57 per cent in September. There are currently 10 houses listed for sale between 2.5 to 2.75 million which is unprecedented for the Vancouver East Side.
Vancouver East Attached
The Vancouver East attached condo and townhouse market is a Sellers’ market. The overall absorption rate for October 2015 is 55.49 per cent. The hottest attached property on the East Side is the half duplex with an absorption rate of 92.30 per cent. Many buyers are opting out of the detached housing market and purchasing a half-duplex.
Vancouver Downtown Attached
The Downtown condo & townhouse market remains a Sellers’ market. The 300,000 to 700,000 dollar price range was the most active. The overall absorption rate for October 2015 was 56.13 per cent. There were a total 284 properties sold in October 2015 compared to 255 in September 2015.
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Absorption Rate is:
0 to 14% Buyers Market
15 to 20% Balanced Market
21% & Greater Sellers Market