Stats Don’t Lie in Vancouver Real Estate

Stay Calm

According to the Real Estate Board of Greater Vancouver “buyers are active despite a reduced supply of homes.” That’s Realtor speak for “buyers are paying sky high prices for an increasingly rare commodity – a home for sale.”

How Bad?

  • Sales were up 36.2% above the 10 year average. “One-third above what’s typical for this time of year” says the President. But –
  • “the supply of homes for sale is the lowest we’ve seen in five years.”

Generally, analysts say that downward pressure on home prices occurs when the ratio declines below the 12 per cent mark, while home prices often experience upward pressure when it reaches 20 per cent, or higher. The sales-to-active-listings ratio in October was 38.1 per cent!

Buyer Nose Bleeds

Priceless DiamondImage: mostexpensivediamond.org

If you are planning on buying a home in Vancouver expect to get a nose bleed when the negotiated purchase price is higher than you expected.

In part, a driving factor is that homes for sale are becoming as rare as the Koh-I-Noor diamond whose value is considered priceless.

The Messiah

But don’t let that stop you! As we all know there is never a bad time to buy real estate – Right?

After all, the Vancouver’s price growth over the many years and the increasing number of people left waiting at the station for the price drop messiah to deliver affordable homes may be the only valid indicators of Vancouver’s real estate current and future trend.

October Numbers

Detached

  • October 2015 detached sales reached 1,437, an increase of 13.1 per cent from the 1,271 detached sales recorded in October 2014
  • The benchmark price for a detached property in Metro Vancouver increased 20.1 per cent from October 2014 to $1,197,600

Apartment

Spiraling House Price
  • Apartment property sales reached 1,543 in October, an increase of 21.7 per cent compared to the 1,268 sales in October 2014
  • Apartment Benchmark price increased 11.4 per cent from October 2014 to $425,800

Attached

  • October sales totalled 666, an increase of 28.6 per cent compared to the 518 sales in October 2014
  • Attached Benchmark prices increased 9.3 per cent between October 2014 and October 2015 to $526,700.

Full Stats Here

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:

Jimmy Says:
November 4th, 2015 at 8:22 am

I’m trying not to think about RE prices anymore as based on my above-average income and savings, I cannot realistically buy a single detached house and carry a big mortgage hoping that by the time I retire I will reap a huge wad of taxfree capital gains.

Others that choose (or already chose) to gamble or have access to other funds, all the power to you. I’m not going to live above my means just to be like the Joneses next door.

I’ll admit it’s getting harder though as more around me seem to lose their way and get caught up in this craze. We seem to now focus on showing off how nice our lives are and crave that instant adoration/envy from others, even if it’s all just a facade.

Reed Says:
December 2nd, 2015 at 5:02 pm

I admit article made good points. I feel once the newly elected Liberal government starts to relax immigration policy and lets more waves of Asian immigrants into the country, Vancouver real estate price will not back down.

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