Vancouver’s Average Price – Mythical

Four Leaf Clover

The myth surrounding the four leaf clover is that each leaf has meaning. One leaf symbolizes hope, one is for faith, another for love, and the fourth is for luck. The odds of finding a four leaf clover according to the web is about 1 in 10,000.

In October of 2010 the average price of Vancouver homes may have attained the mythical status associated with a four leaf clover as once again the average price has exceeded $1,000,000 this year.

Average Price 1977 – 2010

Detached

If you are a lotto player then 1 in 10,000 might seem like pretty good odds. If you are a home buyer those odds have not played in your favor as prices have risen in two of the three market segments.

The average price of a detached home in Vancouver superseded last month’s all year high of $1,016,324. The fourth leaf of the clover may be luckier than we might suppose as the average price reached another high of $1,058,578 – higher than March’s $1,002,020 and April’s $1,003,884.

Attached

The Attached average price continued to waffle dropping down from last month’s $534,085 to $519,187.

Apartment

Apartment average prices continue to bounce in the $430k to $440k price range settling in this month fluctuate in the $430,000 range. October’s average apartment price was $441,696.

Vancouver Real Estate Average Price Numbers:

Detached Attached Apartment
October 10 – $1,058,578 October 10 – $519,187 October 10 – $441,696
October 09 – $913,938 October 09 – $523,541 October 09 – $429,777
October 08 – $825,206 October 08 – $461,788 October 08 – $386,838

Vancouver Real Estate Inventory – Active Listings

Detached Attached Apartment
October 10 – 5,829
+ 12%
October 10 – 2,184
+ 22%
October 10 – 6,062
+ 18%
October 09 – 1,828 October 09 – 1,777 October 09 – 5,120

Vancouver Real Estate – Units Sold

Detached Attached Apartment
October 10 – 979
– 34%
October 10 – 377
– 38%
October 10 – 988
– 38%
October 09 – 1,493 October 09 – 611 October 09 – 1,607

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

When Life Moves You - contact Larry:

*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

davers Says:
November 1st, 2010 at 9:57 am

This makes the coming HPI all the more interesting. I heard that a $17.5 million house sold last week, which would probably throw the average for a bit of a loop. That one house alone adds something like 17K to the average this month.

It should also probably be noted that this house sold for 21% below asking.

The question is, will the HPI show any signifigant change this month? I am betting on changes of less that 0.5%, but only time will tell.

stats don't lie Says:
November 1st, 2010 at 4:30 pm

FYI – the numbers listed for detached units sold don’t add up:

Detached Units Sold:
979/1493 = 65.6% = -34.4% (not -22%)

November 1st, 2010 at 4:47 pm

@stats
thanks for noting the typo – corrected

jim Says:
November 1st, 2010 at 5:12 pm

A $17 million sale divided by how many sales is the skew effect I believe?
Offset of course by unrealistically low priced properties.

JustCurious Says:
November 1st, 2010 at 5:13 pm

Larry, you mentioned recently that you’ve noticed that fixed-up houses are selling fine whereas fixer-uppers are sitting. That’s my observation in my area too, which partially explains the rise in averages while sales volumes are relatively low. Maybe the reno’n’flip crowd are taking a time out?

My question: the benchmark / HPI values don’t take ‘condition’ into account, do they? I think they just look at number of rooms etc. So we could see benchmark prices going up ‘articifically’ also. Is this correct?

November 1st, 2010 at 11:24 pm

@justcurious
“HPI values don’t take ‘condition’ into account, do they?”
HPI Disclaimer says: “Index numbers estimate the percentage change in price on typical and ‘constant quality’ properties over time”.
I’m not certain what that ‘constant quality’ determinant is but my guess is it doesn’t include granite and stainless steel.

specialfx3000 Says:
November 2nd, 2010 at 8:06 am

I’ve heard that sales may take up to 2 weeks to make it to the stats. If so, would that $17.5 million house sold last week make it in Oct or Nov stats?

Just curious….

November 2nd, 2010 at 8:40 am

@special
“may take up to 2 weeks to make it to the stats”
A sale is only a sale once all conditions have been fulilled or waived by the buyer – that might take two weeks or more. Once that has been accomplished the ‘sales slip’ must be submitted to the board within a couple of days of that occuring. At that point it would be registered on the system within 24 hours. So yes, it could well have made it into October’s numbers.

bearknowitall Says:
November 2nd, 2010 at 1:28 pm

Take off that 17.5m house sold from last month, you’ll take off 18K from the average price.

$1,058K -$18K = $1040K , which is still all time high for GV.

rf Says:
November 2nd, 2010 at 2:06 pm

The fixed-uppers are likely selling because the majority of buyers ,in my opinion, can stretch it on the mortgage. What they can’t do is come up with any more money out of their pocket, so they can’t go near the fixer uppers.
I’d love to see a stat on how many Vancouver home buyers with income incomes over $150,000 make zero RRSP contributions.
These same folks will start whining that CPP isn’t enough to live on when they want to retire early.

Jim Says:
November 3rd, 2010 at 11:32 am

rf

“I’d love to see a stat on how many Vancouver home buyers with income incomes over $150,000 make zero RRSP contributions.”
Probably alot.

But since when is blind investment in a mutual fund, whilst not knowing anything about the underlying companies invested in, any more savvy than paying down a mortgage?

rf Says:
November 3rd, 2010 at 4:58 pm

It’s more savvy because if you want to retire, without a defined benefit pension, you should be doing both. And I never said you need to buy stocks. What you need is to defer income taxed at 43.6% until retirement and a significantly lower tax rate. $20,000 into an RRSP or $11,340 into a mortgage…… at $150,000/income they are the same thing.

20 years ago, it all went to real estate. Then real estate underperformed.

10 years ago, it all went into stocks. Then stocks underperformed.

Today it all goes to real estate…..

Someone needs to read the Wealthy Barber.
1994 average house was $425kish. Today $1milish.
1994 TSX, 4000ish. Today, 12000ish. ignore the dividends and you can ignore the rent.

It’s not that one is better than the other, it’s that one will always be better than the other “today”.

We have a generation that is only investing in one asset class. It always ends in tears.

jim Says:
November 3rd, 2010 at 9:19 pm

rf
95% of rrsps are directly or indirectly invested in stocks.
The tax protection mantra is a bill of goods sold by the feds and capitalized on by the banks.
To each his own.

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