February Market Update
The market update for February is an interesting one in Vancouver as January was what we call a diverse market. The condo and townhouse market performed very differently from detached home market. If we take a look at the residential composite for all properties in East Vancouver we see that in the past month we saw a 0.1% increase in home values. Single family detached saw a -1.1% decrease over the last month. Townhomes went up 1.1% in East Vancouver over the last month and Condos went up 0.8%.
We are seeing a lot of pressure on condos and townhomes that are priced well. The detached market has definitely changed however a properly staged home that has a good marketing strategy in place is still getting top dollar. Townhomes are definitely leading the pack though as they are proving to be a great option for young families.
Here are some interesting stats to look at:
Benchmark Price for an East Van Townhouse: $739,200
1 year change in East Van Townhouses: 11.8%
5 year change in East Van Townhouses: 48%
10 year change in East Van Townhouses: 78.8%
Is it a sellers market or buyers market?
Typically we say that a sellers market happens when there are more buyers than sellers in the market place. We consider it a sellers market when the sales to active list ratio is above 20% and a buyers market when it is below 12%. Between 12-20% it is considered a balance market. Currently we are seeing this ratio in Greater Vancouver right at 21%. The East Van Townhouse ratio remains at 49% significantly favouriting sellers.
Moving forward we expect to see more townhome developments being built. As the city continues to try to supply more housing and deal with the affordability issue re-zoning is taking place in certain areas of Vancouver. With that being said permits are slow and this will not happen over night. Depending on the size of the development 1-3 years of construction is pretty typical to get a new development completed. We will continue to see high demand for townhomes as long as the detached market remains above $1Million for lot value. Families are looking for move in ready homes that have the space for multiple children. Condos generally do not provide this and most East Vancouver homes are out of reach for these young families.
If you are looking to buy, sell or invest in the East Vancouver market we are happy to create a plan that will give you the best chance at succeeding in this market.