As we approach the end of 2016 the Vancouver real estate market continues to settle into a balanced market. The condominium and townhouse sector is the most active with the single family detached housing sector having less demand relative to supply. The benchmark price for both condominiums and townhouses remains unchanged from last month however the single family house benchmark price has dropped by 2.2 per cent from last month.
Today, Vancouver’s real estate market is performing well yet it is important to look at individual areas, property types and price ranges.
Vancouver East Side Detached Houses
The absorption rate* for single family detached houses on the East Side for the month of November is 14 per cent which states a Buyer’s market. This remains relatively unchanged from the previous month of October. Properties need to be priced at market value or buyers will look elsewhere. The most active price range was 1 to 1.25 million with an absorption rate of 35 per cent followed by 1.25 to 1.5 million with an absorption rate of 23 per cent. The average sales price has dropped to $1,459,000 from the previous month of $1,564,000. The average days on market has increased from 15 to 24. Today’s Buyers are taking their time when searching for their next house and are very price sensitive, yet good listings in sought after neighbourhoods are selling close to asking and in a reasonably short period of time. Overall, the Vancouver East Side detached housing market is balanced and active up to 1.5 million.
Vancouver East Side Condominium and Townhouses
The East Side Condo and Townhouse market is very active up to 1.5 million dollars. Vancouver’s low vacancy rate and the current record low interest rates are driving this market. The most active price range is 300,000 to 500,000 followed by the 600,000 to 700,000. One bedrooms priced under 400,000 in good buildings are receiving multiple offers and at times sale prices over asking. The average sales price and days on market remains relatively unchanged from the previous month of October. The absorption rate* is 66 per cent which indicates a strong Seller’s market.
Vancouver West Side Detached Houses
The absorption rate* for the West Side detached housing market is 14 per cent which indicates a Buyer’s market. The 14% absorption rate is largely affected by the luxury housing market which is very slow and is a strong Buyer’s market. If we take out the 5 million and up price range, the absorption rate changes to 35 per cent which indicates a seller’s market. Buyers on the West Side can take their time and will not look at overpriced listings.
Vancouver West Side Condominium and Townhouses
The West Side condo and townhouse market is a seller’s market with an absorption rate* of 40 per cent. The market is active up to 1.25 million dollars with the activity slowing from 1.3 million to 1.75 million and then with very little activity from 1.8 million and up. The neighbourhoods of Kitsilano and Fairview were the most active with Fairview having a 77 per cent absorption rate and Kitsilano having a 53 per cent absorption rate.
Downtown Condominium and Townhouses
The Downtown condominium and townhouse market has an absorption rate* of 37 per cent making it a Seller’s market. Bachelor and one bedroom condominiums priced under $525,000 in good buildings are selling at an average of 3 per cent over the asking price. The new mortgage rules have had zero effect in this market and there are no signs of it slowing anytime soon. Prices have slightly declined since the peak of June 2016 though demand remains strong. As long as Vancouver has a near zero percent vacancy rate and the market holds its record low interest rates we will continue to see good activity in this sector.
North Vancouver Detached Houses
The North Vancouver detached housing market has an absorption rate* of 24 per cent making it a Seller’s market. The 1 million to 1.5 million dollar price range is the most active with an absorption rate of 68 per cent. Buyers will not look at overpriced listings in the aforementioned price range but good listings priced at market value are selling within 14 days and very close to the asking price. There is good activity up to 2.25 million however beyond this price range the activity drops off and shifts to a Buyer’s market. The two neighbourhoods with the most sales were Lynn Valley and Upper Lonsdale with a total of 51 listings and 20 sales for the month of November. The number of listings has declined from 361 in October to 296 in November. The decline in the number of listings will most likely continue through to the end of January. The continuing decline in the number of listings through till the end of January will provide good opportunities for Sellers.
North Vancouver Condominium and Townhouses
The activity for both condominiums and townhouses for the month of November in North Vancouver was very good. The absorption rate* is 64 per cent making it a strong Seller’s market. The most active price range was 300,000 to 600,000 with an absorption rate of 100 per cent. Market priced listings are selling within 14 days and close to or at the asking price.
November 2016 Real Estate Market Summary
The Vancouver real estate market is very active in all moderate price categories. Buyers are price sensitive and will not look at listings that are priced over market value. The luxury housing and condominium market remains quiet. As we enter the end of 2016, Buyers are getting more data on how the market is adjusting and stabilizing from this summer’s peak market. At this time, all the current data is stating that the New Year will be busy in the moderate price categories and in desirable neighbourhoods.
*Absorption rate is calculated by taking the number of homes that sold in a month and divide it by the total number of homes for sale at the end of the month.
0-14% Buyer’s Market
15%-20% Balanced Market
21%+ Seller’s Market
2016 Monthly Absorption Rates:
Detached Single Family Houses
Condominium & Townhouse