Median Price – Vancouver Homes

Tremors

Did you feel a little tremor when three of four major areas in the Vancouver exhibited median prices on the decline?

Train Wreck

Train Wreck

You can’t turn a page in the local and national rags without seeing another flashy story about some property that sold for an unprecedented price. The reporting is the same when it’s a train wreck – it is all about the hype. It is incredible!

Hypeable

There are a thousand reasons why a train goes off the tracks and another thousand why it should not have. Sadly when Vancouver real estate does fall off the tracks which presently doesn’t seem to be the case, will the reporting hype be different?

I wonder, can we expect less drama where the local rag’s headline simply states: – “The train was travelling at an excessive speed.” Much less hype and like the median price drop, not much of a tremor!

2015 Vancouver West Vancouver East West Vancouver North Vancouver

February

$2,581,500

$1,098,000

$2,367,500

$1,278,750

March

$2,718,000

$1,137,500

$2,300,000

$1,290,000

April

$2,650,000

$1,114,500

$2,400,000

$1,262,944

Vancouver Median Price

Vancouver Medians

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:

james Says:
May 7th, 2015 at 7:45 am

Yes median is better than average.

Watch the bond market. Things are going to get interestin.

May 7th, 2015 at 9:24 am

@James
going to get – they already are IMO

Mike Says:
May 7th, 2015 at 11:30 am

Hello Larry,
Care to give us some details on what you mean when you say that things are already interesting?!
My interpretation of James’ comment is that he is expecting that the spike in bond market yield will usher in higher interest rates and lower prices… I hope I understand it correctly.
Are you saying that you think your graph above already shows median prices rolling over and you expect this to be the start of a correction? I’d be very interested in a detailed comment from you regarding your expectations. Thanks a lot.

May 7th, 2015 at 12:29 pm

@Mike
re: Interesting. You don’t have to look far to see a residential market that seems a little out of control. For the past few years the market has followed this path. However, this spring it appears to have reached a new level of ‘fever’ which to a large extent has resulted from the lack of inventory. James may be on to something or like the lack of inventory amongst other influences, there may be an alternate explanation. I don’t know for certain.
What I do know is that I’m hearing about flipping – words that haven’t been heard in a long while. I won’t point to specifics but coffee conversations with my contemporaries in the business are highlighted by this issue and it is worrisome.
As for the graph it is quite unusual to have three distinct areas across the city dip at the same time. The significance is that the ‘dip’ is not occurring in isolation. It is by no measure a trend but perhaps more a psychological shift in buyer’s perspective of value.

Mike Says:
May 7th, 2015 at 12:49 pm

Your comments are much appreciated !

Michael Says:
May 9th, 2015 at 8:10 am

Regarding interest rates (bond yields), here is the Vancouver price graph back to 1977 plotted against 5-year mortgage rates. Interestingly, every time mortgage rates begin rising for a sustained period, prices begin to soar.

http://i.cubeupload.com/bRAjjM.png

Prices look to correct or crash only at the end of a tightening cycle (red bar).

Regarding interest rates (bond yields), here is the Vancouver price graph back to 1977 plotted against 5-year mortgage rates. Interestingly, every time mortgage rates start rising for a sustained period, prices begin to soar.

Prices look to correct or crash only at the end of a tightening cycle (red bar).

Source:
http://www.bankofcanada.ca/wp-content/uploads/2010/09/selected_historical_v122497.pdf

rogerthat Says:
May 10th, 2015 at 9:06 am

Thanks for the great info/updates Larry…

My guess is that this time when rates rise, outside of a mini rush to buy before rates go even higher, type of mentality, that the weight of higher debt carrying costs will weigh in on prices quickly.

Roger

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