Oops! Vancouver Average Prices Do It Again

More Expensive

The numbers are in and local politicians prognostications on future Vancouver housing affordability will need adjusting. Owning a house in Vancouver just got more expensive as prices break all previous records to set another all time average high of $1,397,207.

Average Price 1977 – 2014

2015-03-01-Average-Price-Web

Vancouver Real Estate Average Numbers

Detached Attached Apartment
February 14 – $1,397,205 February 14 – $605,972 February 14 – $447,806
February 13 – $1,361,023 February 13 – $575,232 February 13 – $454,213
February 12 – $1,235,244 February 12 – $573,534 February 12 – $455,689

Vancouver Real Estate Inventory – Active Listings

Detached Attached Apartment
February 14 – 4,724
– 18%
February 14 – 1,696
– 9%
February 14 – 5,029
– 4%
February 13 – 5,814 February 13 – 1,872 February 13 – 5,726

Vancouver Real Estate – Units Sold

Detached Attached Apartment
February 14 – 1,302
+ 25%
February 14 – 521
+ 11%
February 14 – 1,244
+ 20%
February 13 – 1,035 February 13 – 466 February 13 – 1,032

Basics

House Picture Prices Rising

How does one explain the average price increase?

An armchair economist would apply the active listing vacuum and the high demand into a simple supply demand formula that results in new higher price levels. That’s the math!

A more direct view is that this time of year coincides with a notable Chinese holiday during which many visitors hungry to park accumulated wealth are welcomed to Vancouver. The goal – acquire politically secure Canadian property. They arrive money in hand ready to pay any price. That price however, is beyond the imagination and capability of what locals can afford.

The residual effect faced by local Vancouver home buyers is a real life problem that precludes pretty formulas. Their hardship reality is simple – the playing field isn’t level and they cannot compete with the volume of individual wealth.

Municipal leaders pontificate that they are doing something about affordability. It is their shield. Yet, based on the ever increasing average price of a home in Vancouver it seems safe to speculate that politicians don’t get it. It is that or they are not prepared to contend with storms of controversy associated with restrictive policy. Either way their shield has rusted and the horse they call Affordability left the barn a long time ago never to be seen again.

*Percent = YOY

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:

bbcoq Says:
March 1st, 2015 at 4:45 pm

Larry,
How influential is lower dollar in overseas buyer looking at Metro Vancouver as a relative buyers market?

would-be buyer Says:
March 1st, 2015 at 7:15 pm

Or, could it be that they are tightening again in Hong Kong? Can you imagine if you needed 40% down payments in Vancouver?

http://www.bloomberg.com/news/videos/2015-03-02/hong-kong-moves-to-cool-property-prices

March 1st, 2015 at 8:12 pm

@ bbcoq
Don’t think the dollar difference is an issue. Concern about being able to keep their money is. Should we take a 50% market dip here they only lose 50%. If their government cracks down it’s 100%. I have no basis in fact it’s just coffee talk.

cheaper Says:
March 1st, 2015 at 8:17 pm

The higher they go just justifies and subsidizes the affordable rent I pay for my house. Thank you landlord’s for making poor roi purchases. Xoxo

March 1st, 2015 at 8:19 pm

@would be
true and if I’m correct Hong Kong is suffering the same problem we are. Australia is also getting grumpy.
40% Down – yes that would certainly put a wrinkle in the average resident Canadian first time home buyer.

March 1st, 2015 at 8:21 pm

@cheaper
now wouldn’t it help even more renters if all the empty houses were for rent.

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