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September Update - Affordability in the Housing Market

Affordability in our real estate market has long been a top of mind issue, exacerbated now by the rise in rates. We have discussed the inventory shortage over the past several months and many have asked, “why not simply build more homes to solve the problem?” 

Not only does the shortage of developeable land and cost to acquire it pose major hurdles, a recent study by the Urban Development Institute in Vancouver shows that taxes and fees to develop can be prohibitive for many smaller developers. The report looked at the costs of an 800 sqft. condo in Vancouver in 2023 and contributing factors to the unit’s staggering average price of $1,120,000. Fees and taxes per unit were 29.25% of the imagined condo’s cost. Keep in mind these do not include the cost to build or for land acquisition. (Click here to see the report)

 While the Vancouver market is already wildly out of price for many, developers will always look at their bottom line, keeping their prices as high as the market will allow. The only way forward in this situation would be to flood the market forcing prices down, and while the expense to build is so high, this scenario seems an unlikely solution.

 Creative home-ownership may be a way forward. 

 Rising values have led to an increasing number of homeowners opting to become co-owners. This can take various forms, whether it be splitting a single family dwelling with friends, building a laneway house, or buying duplexes for extended families to live next door. Census data shows that multi-generational households are now the fastest growing household type in Canada. In cases where home-buyers cannot afford to purchase on their own, they are combining their buying power with their parents, children, siblings or friends. (Click here to read the Royal Lepage article)

 Interested in learning more about The Urban Development Institute report? 

Call us today for more info and market updates!

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With summer around the corner, we are taking a look at the factors at play in today’s shifting real estate market. The increased cost to borrow money, the seasonal ebbs and flows of the market, and the normalizing of real estate post-COVID, all play a part in our current market conditions.

The last interest rate increases were in 2018. In July of 2018 the Bank of Canada raised Prime from 3.45 to 3.7 and later to 3.95. As borrowing costs rose, real estate sales decreased. With the recent rise in rates, 2022 is on a similar trajectory as 2018 did for sales. Interestingly, sales numbers for the month of May in years 2018, 2019 and 2022 are similar, further demonstrating a return to pre-COVID market conditions. 


While world events sent us scrambling to adjust our lifestyles in 2020, the unpredictability of the last two years is finally, almost behind us. As such, the real estate market will return to its seasonal ebbs and flows, barring any further unforeseen world events.

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Weekly Stats - May 16 - North Van Condos

Each week we post the latest stats for one of our specialty areas. This week, we're focusing on the North Vancouver condo market.

>> CLICK HERE TO VIEW THE LATEST SALES <<

  • Current inventory is 30% below last year, with 215 properties for sale compared to 291 during the same week in 2021. Current listings are 5% higher than last week.
  • Sales weakened this week with 28 transactions out of 215 listings, compared to 47 transactions out of 205 listings last week. Last year we saw 42 sales out of 291 properties during the same period. 
  • Of this week’s 28 sales, buyers averaged 100% of the asking price, with a median sale price of $812,000 and a median of 9 days-on-market. Of the properties sold, five sold for the asking price, 11 sold over the asking price and 12 sold under asking.
  • Our highest priced sale this week: a 3 bedroom, 4 bathroom, 2,419 sq.ft. condo on Capilano Road. List price $4,588,000. Sold for $3,980,000.
  • Our lowest priced sale this week: a 1 bedroom, 1 bathroom, 773 sq.ft. condo on St. Georges Avenue. List price $399,999. Sold for $390,000.
  • Market absorption rate for North Vancouver condo listings: At the current sales rate, if there were no new listings added, it would take 1.7 months for inventory to be absorbed into the market. 
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Weekly Stats - May 9 - North Van Detached Properties

Each week we post the latest stats for one of our specialty areas. This week, we're focusing on the North Vancouver detached property market.

>> CLICK HERE TO VIEW THE LATEST SALES <<

  • Current inventory is 11% below last year, with 204 properties for sale compared to 229 during the same week in 2021. Listings numbers have not changed since last week when there were also 204 properties for sale.
  • Sales weakened this week with 17 transactions out of 204 listings, compared to 26 transactions out of 203 listings last week. Last year we saw 36 sales out of 229 properties during the same period. 
  • Of this week’s 17 sales, buyers averaged 100% of the asking price, with a median sale price of $2,128,000 and a median of 8 days-on-market. Of the properties sold, one sold for the asking price, eight sold over the asking price and eight sold under asking.
  • Our highest priced sale this week: a 3 bedroom, 2 bathroom, 2,710 sq.ft. house on Western Avenue. List price $2,650,000. Sold for $3,500,000.
  • Our lowest priced sale this week: a 4 bedroom, 2 bathroom, 1,575 sq.ft. house on Dollarton Highway. List price $1,498,000. Sold for $1,498,000.
  • Market absorption rate for North Vancouver detached listings: At the current sales rate, if there were no new listings added, it would take 2.4 months for inventory to be absorbed into the market. 
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Weekly Stats - April 26 - West Van Attached Properties

Each week we post the latest stats for one of our specialty areas. This week, we're focusing on the West Vancouver attached property market.

>> CLICK HERE TO VIEW THE LATEST SALES <<

 

  • Current inventory is 31% below last year, with 79 properties for sale compared to 114 during the same week in 2021. Current listings are 7% higher than last week.
  • Sales remained steady this week with 5 transactions out of 79 listings, compared to 5 transactions out of 74 listings last week. Last year we saw 6 sales out of 114 properties during the same period. 
  • Of this week’s 5 sales, buyers averaged 100% of the asking price, with a median sale price of $1,495,000 and a median of 7 days-on-market. Of the properties sold, two sold for the asking price, one sold over the asking price and two sold under asking.
  • Our highest priced sale this week: a 3 bedroom, 3 bathroom, 1,472 sq.ft. condo on Bellevue Avenue. List price $2,150,000. Sold for $2,080,000.
  • Our lowest priced sale this week: a 1 bedroom, 1 bathroom, 692 sq.ft. condo on Esquimalt Avenue. List price $445,000. Sold for $445,000.
  • Market absorption rate for West Vancouver attached listings: At the current sales rate, if there were no new listings added, it would take 3.2 months for inventory to be absorbed into the market. 
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Weekly Stats - April 20 - West Vancouver Houses

Each week we post the latest stats for one of our specialty areas. This week, we're focusing on the West Vancouver detached housing market.

>> CLICK HERE TO VIEW THE LATEST SALES <<

  • Current inventory is 9% below last year, with 366 properties for sale compared to 401 during the same week in 2021. Current listings are 6% higher than last week.
  • Sales remained steady this week with 7 transactions out of 366 listings, compared to 7 transactions out of 344 listings last week. Last year we saw 19 sales out of 401 properties during the same period. 
  • Of this week’s 7 sales, buyers averaged 96% of the asking price, with a median sale price of $2,650,000 and a median of 14 days-on-market. Of the properties sold, one sold over the asking price and six sold under asking.
  • Our highest priced sale this week: a 7 bedroom, 11 bathroom, 8,011 sq.ft. house on Mathers Avenue. List price $14,288,000. Sold for $11,800,000.
  • Our lowest priced sale this week: a 3 bedroom, 2 bathroom, 1,700 sq.ft. house on Glenross Road. List price $2,388,000. Sold for $2,200,000.
  • Market absorption rate for West Vancouver detached listings: At the current sales rate, if there were no new listings added, it would take 7.8 months for inventory to be absorbed into the market. 
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Weekly Stats - April 4 - NV condos

Each week we post the latest stats for one of our specialty areas. This week, we're focusing on the North Vancouver condo market.

>> CLICK HERE TO VIEW THE LATEST NORTH VANCOUVER CONDO SALES <<

  • Current inventory is 46% below last year, with 66 properties for sale compared to 122 during the same week in 2021. Current listings are 20% higher than last week.
  • Sales improved this week with 5 transactions out of 66 listings, compared to 1 transactions out of 55 listings last week. Last year we saw 3 sales out of 122 properties during the same period. 
  • Of this week’s 5 sales, buyers averaged 97% of the asking price, with a median sale price of $1,675,000 and a median of 10 days-on-market. Of the properties sold, one sold over the asking price and four sold under asking.
  • Our highest priced sale this week: a 3 bedroom, 4 bathroom, 3,773 sq.ft. townhouse on Highview Place. List price $3,999,000. Sold for $3,868,000.
  • Our lowest priced sale this week: a 3 bedroom, 3 bathroom, 1,574 sq.ft. townhouse on Keith Road. List price $1,180,000. Sold for $1,250,000.
  • Market absorption rate for West Vancouver attached listings: At the current sales rate, if there were no new listings added, it would take 2.5 months for inventory to be absorbed into the market. 
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