What is happening in the market?
Everyday I’m asked by clients “Where is the market headed, and where do we go from here?”. In all honesty, every agent is trying to navigate the current economic climate, and have grown increasingly aware of providing the right advice. While I can appreciate the CMHC’s recent article predicting a bottom in prices come 2021, Vancouver has historically proven to be an outlier from the rest of Canada and ultimately the market activity will be dependent on so many macro economic factors that we can’t forecast quite yet – interest rates, job loss, consumer confidence, etc.
We are short on single family inventory under $2.2M in all areas of the Lower Mainland. Ultimately, starter homes priced under $1.8M are in high demand and are being absorbed in record time.
Speculative investments and some presales will likely be the hardest hit in this new market. There are over 6,000 presale units currently for sale, and we will likely see developers take a pause in launching new projects.
The condo market is extremely price sensitive, but if a unit is priced sharply it will sell quickly. The first time Home Buyer’s market was one of the strongest groups for sales over the past two months. Over 90% of all condos priced under $650K are being absorbed by the market and we continue to see multiple offers on homes under $800K in the Valley and on the Island.
West Vancouver still represents some of the best value buys for renovation and hold. Between March 1 and May 25th, 19 homes sold in West Vancouver under 2 million with the average price hitting $1,599,331. Comparatively, 145 single family homes sold in East Vancouver with the price averaging at 1,429,898. The Westside saw only 10 homes sell under 2M with the average price hitting $1,714,750.
Olympic Village by the numbers- May 2020
There were new 31 listings that came to market in Olympic Village in May, and there are currently 83 active listings. I am also seeing properties on the market for slightly longer. The median days on the market is now 36. When I compare that April 2019, the average days on market was 17.
This compares to April 2020 where we saw only 11 listings come to market, and 7 sales. Quite a big jump for May. However, I think that is also a result of the restrictions being lifted and the province opening up a bit.
May Average sales prices: