Vancouver Average Prices Add Twist to Affordability

Deviation

The Average price of a detached Vancouver home took a slight deviation from the course followed in the last few months – it’s down.

Average Price 1977 – 2014

Vancouver Average Price July 2015 YatterMatters – Average Price July 2015

Vancouver Real Estate Average Numbers

Detached Attached Apartment
July 15 – $1,403,632
+ 17%
July 15 – $626,448
+ 6%
July 15 – $481,040
+ 3%
July 14 – $1,193,751 July 14 – $588,101 July 14 – $466,845

Vancouver Real Estate Inventory – Active Listings

Detached Attached Apartment
July 15 – 4,614
– 31%
July 15 – 1,492
– 31%
July 15 – 5,399
– 19%
July 14 – 6,771 July 14 – 2,171 July 14 – 6,675

Vancouver Real Estate – Units Sold

Detached Attached Apartment
July 15 – 1,564
+ 17%
July 15 – 528
+ 30%
July 15 – 1,729
+ 42%
July 14 – 1,328 July 14 – 528 July 14 – 1,212

‘On The Level’

While Detached home prices wilted slightly compared to last month they remain up 17% year over year.

Attached properties also held firm at $626,448 even though prices were slightly down from May’s average of $644,449.

In contrast Apartments ripped a page out of the ‘Detached Book of High Prices’ and at $481,040 approached the all time high of $487,515 set in July 2013.

Level

What is troubling is the continued and unseasonal decrease in the number home sellers. It is clear that inventory levels are not at historic levels and have shifted that level’s bubble.

At question, is whether high prices have reached the glass ceiling of affordability and in so doing has this stopped people from selling there homes?

Can’t Afford to Sell

Parents who have re-mortgaged their home in order to help their children buy a house may be facing a huge financial dilemma – they can’t afford to sell. The combination of ever increasing prices and the residual net proceeds from the sale including mortgage pay out and early redemption penalties may leave insufficient sums available for the parents to purchase a home they prefer – a dilemma and a twist to the notion of affordability and a possible reason why few homes are for sale.

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:

cheaper Says:
August 4th, 2015 at 8:33 am

Not surprised you made use of the bubble word. Cracks have appeared.

August 4th, 2015 at 9:21 am

@cheaper
There probably is a proper name for that bubble in the level I couldn’t think of it. Instead I just referred to a contractor I frequently work with who simply calls levels bubble machines’.

Michael Says:
August 4th, 2015 at 12:12 pm

Not only can they afford to sell, they can trade up their lifestyle and have a pile of cash. Sell the 1.4M shack and buy a nicer place for half that in Victoria (half the rain too). 10 minute flight if they must see their spoiled children.

August 4th, 2015 at 1:04 pm

@michael
For some Victoria may not be considered a trade up. 🙂

cheaper Says:
August 4th, 2015 at 3:25 pm

Larry your theory is plausible however typical herd mentality is that when prices are rising why sell today when one thinks they are headed higher. …only when prices start a declining trend is when the herd tries to bail. Timing is tricky… shall be interesting to see what prevails over the horizon

August 4th, 2015 at 3:49 pm

@cheaper
if you take into account health or changes to family dynamic the scenario comes alive as nobody really plans for these events. as for herd mentality you may be right however, I don’t think it applies to my story.

mo yan Says:
August 5th, 2015 at 12:28 pm

Parents would give/advance $200,000 to a kid to get a SFH. How often would that happen?

More like 50,000 for down payment for a condo? Can you tell me where I can find these super nice parents, I can use 4.

August 5th, 2015 at 1:49 pm

@mo yan
anecdotal evidence suggests this may happen more than we might think. As for the give/advance, that part may be a function of estate planning. As for helping you find super nice parents – that sir is beyond my scope of service.

BBcoq Says:
August 5th, 2015 at 6:53 pm

I notice in my neck of woods the better quality product sold first and lesser quality of houses took longer to sell. Fewer listings thru the summer means less selection, more secondary product , so lower prices. Most notable is how quick good stuff goes even in current dog days. Think lesser price will continue but rebound as listings climb in September increasing the inventory. Just my guess.

August 5th, 2015 at 7:07 pm

@Bbcoq
Not surprised about the better houses. Fewer people have the skill sets or time to take older homes and tart them up. I think for young families the time commitment, renovation cost and work required can be overwhelming.
As for listings in September IMO we are on the downhill slide and this will push prices further regardless of condition.
BTW glad to see you are still kicking 🙂

BBcoq Says:
August 5th, 2015 at 7:21 pm

Still kicking and most prominent phenomena in this area is how quick some of the older, dated stuff is torn down after selling. In past less were torn down, instead they were fixed up.
About 18 months ago the iceberg tipped over and now vast majority are torn down and replaced with much bigger house.
A result is even fewer lower or mid budget houses and more big ticket ones- pushes average higher and also changes the character of area from a historically affordable suburb to one most cannot afford. Less first timers, etc.

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