VANCOUVER REAL ESTATE – February Market Update

January brought a flurry of activity into our marketplace. We have already sold 12 homes totaling $24,000,000. This was a huge uptick in activity compared to the last few months. It would seem to me that buyers are getting used to the new interest rate environment and that people are no longer able to wait on the sidelines watching the market. Despite rocky times in the market buyers continue to need to move for many of life’s reasons including having baby’s, getting married, divorced, and downsizing. Times like this make people realize that their homes aren’t just an investment, they are their haven’s and places to enjoy family and friends. 

While the market continues to be sluggish overall there are still a few nice properties that come on the market here and there. When they do come up, they do not last long and are quickly snatched. We work in all of the segments of the market, and within various sub markets, we are seeing different stories emerge. Here are a few key observations of late in different market segments: 

Entry level condos: If priced well these homes are selling and with multiple offers. 

Mid level condos and townhomes: Affordability for buyers is an issue. Well priced 3 bedroom condos and townhomes are hard to find because there is low inventory. 

½ Duplexes: This segment of the market remains hot. In East Van, prices are down from a peak of an average of $2,000,000, and are now closer to an average of $1,800,000 for nice and newer homes. The Westside has low inventory, which continues to put upward pressure on pricing, and sales in this segment are at all time highs. 

Luxury Condos: There is a lot of inventory and sellers are holding prices hoping demand comes up to meet them. The opposite has taken effect, especially downtown, where inventory steadily rises, which will create more downward pressure in terms of pricing on this segment. We expect to see some forced sales in the coming months. 

Entry level detached homes: Move in ready houses are still selling quickly with little inventory. “Land value,” type properties are slow to move with few interested buyers, unless they are well priced. Developers are sitting on their money, waiting for prices to come down while building costs and labour are elevated.

Luxury detached houses: Prices are down substantially, however, inventory is low and buyers are only purchasing if the downturn over the past 6 months has been factored into the price. Large land value type properties are sitting and getting very little action. 

If you are interested in having an up to date market evaluation of your home don’t hesitate to reach out or stop by our office at 6158 East Boulevard and we look forward to chatting with you.