In this edition of the September Market Update we will look at trends in East Vancouver townhomes after the 15% tax was implemented (read more about the new Foreign Homebuyer Tax). How did this affect the market in August and what do we think moving forward?
As you can see we saw less listings and less sales of townhomes in East Vancouver in August 2016 as compared to August 2015. If you looked at only this you may conclude that the market is softening, however, we must also look at days on market and most importantly benchmark sale price. Days on market dropped by 7 days and the benchmark price increased over 38% from $566,300 to $785,900. This shows that the demand for East Vancouver townhomes is still very high. With 29% less active listings we saw more competition over what was available resulting in quicker sales for higher prices.
As you can see from the chart above the busiest portion of the market remains the townhomes between $400,000 and $899,999. Sales to Active ratios dip as we go over $900,000 and we are starting to see more inventory in that range. Collingwood and Renfrew saw the largest jump year over year at roughly 42%. All neighbourhoods saw significant increases from 2015 to 2016 and we have yet to see a correction in this segment of the market.
What Do We Expect
Overall we believe that the East Van townhouse market remains very strong and remains under supplied. This 15% foreign tax affected the luxury market but we have not seen much of an impact in the townhouse market. Townhomes remain affordable in comparison to detached homes while offering many of the same features that families love. We expect the market to stay strong throughout the fall, however there may be slightly less demand as many buyers are wanting to sit on the sidelines to see what happens.