What a year it’s been for Vancouver’s real estate market. High demand, low inventory, and escalating prices made for a busy 2015 that kept everyone on their toes in the fast-paced market. The drastic increases blindsided homeowners and professionals alike, including the experts and economists who would’ve predicted a safe 3% to 5% increase. A year ago, no one would ever have dreamed that housing prices would skyrocket by 26% on Vancouver’s Eastside and 23% on the West. Just when you thought a Westside 33 ft lot in Dunbar worth $1.8 million back in January was crazy, that same lot is pushing $2.5 million today.
Vancouver’s Westside market continues to be fueled by immigration, low interest rates, and a sagging Canadian dollar. Of the 45 homes we personally sold in 2015, a whopping 80% of those involved multiple-offer scenarios with the sold price being above the asking price.
It may be a seller’s market out there right now, but if 2015 proves anything, no one really knows what’s in store for the New Year. What is certain, is wealthy immigrants from China see Vancouver as a safe haven to park their money. With the Canadian dollar falling about 30% against the Yuan in the past year, our real estate prices are even more desirable. Our dollar is likely to remain depressed as long as oil, energy and commodity prices remain depressed. Interest rates in Canada aren’t likely to rise any significant amount, if at all, over the next year while our economy remains sluggish. Our low interest rates, combined with potentially higher interest rates in the US, will keep our dollar low thus continuing to incite demand for Canadian real estate.
Vancouver’s Eastside market, on the other hand, isn’t driven so much by immigration as a more diversified demographics of buyers. There, more local influence is the driving force. Many Eastside buyers are young families and local buyers who once would have purchased on the Westside, but are now out-priced. New demand for lower-cost living on the Eastside is to account for the 30% increase in some neighbourhoods there.
Vancouver’s suburban neighborhoods also saw strong demand and rising prices. In the past couple of months I have assisted a couple of buyers house-hunting in Tsawwassen. Every property we’ve offered on is also in multiple offer scenarios which is driving prices up there as well.
I am predicting another strong year for real estate in 2016. I cannot see how we can sustain 20% price increases, but only time will tell. If you’re thinking of selling your home, I can’t imagine a better time than around the upcoming Lunar New Year. Low inventory in most markets coupled with demand as high as it’s ever been ensures we’re in store for many more bidding wars to come. And that means prices will only continue to rise.
We pride ourselves on providing you with sound advice and breaking market data. Contact us anytime if you’d like to know what’s happening in your local market, and all the very best for a happy, healthy, real estate-rich New Year!
(Photo: Kenny Louie)
A million dollar home in Vancouver is nothing new these days. $7 million and counting? Not as uncommon as you’d think, either. For your viewing pleasure, we’ve selected a few West Side properties that recently sold well above that mark. We hope you enjoy the view.
5055 Connaught Drive
This charming heritage mansion in Vancouver’s famed Shaughnessy neighbourhood sold for $7.5 million. With views of Burrard Inlet and Bowen Island, and a veranda for perfect sunset watching, the home features beautiful details of its bygone era in addition to numerous restorations. An honest-to-goodness ballroom, scrumptious-looking pasty box ceiling in the foyer with detailed moulding, and wainscotting throughout lend the 12,000 sq ft on 4 floors an air of cozy grandeur.
2988 Celtic Avenue
Valued at $8,295,000, the custom-built 4,500 sq ft Southlands home boasts a gourmet kitchen and true master bedroom retreat. Vast windows with water views enhance the bright, airy feel and French doors lead to an equally wonderful oasis with a swimming pool and outdoor kitchen.
1807 Arcadia Road
5,700 sq ft of modern family living in the heart of UBC offers up no less than 7 bedrooms, 5.5 baths, a chef’s kitchen and wine cellar. Valued at $8,588,000, the custom-built home welcomes you into its bright interior and tricked-out yard complete with pool, hot tub, outdoor fireplace and kitchen, and putting green.
6630 Marine Crescent
The asking price on this cozy retreat that goes on for 5,897 sq ft on four floors was $7,980,000. Classic elegance meets West Coast relaxed minimalism on the inside, while the outdoors boasts a kitchen, pool and whirlpool. Feeling cramped with house guests? This SW Marine residence offers up a 1,168 sq ft coach house.
There’s no place like home, especially in one of these grand estates that enhance Vancouver’s natural beauty with their majestic architecture. Interested in buying or selling? Contact us any time for a consult.
Demand keeps rising for the diminishing supply of homes on the Vancouver market. Despite being a historically slower month, November’s numbers only dipped by 3.3% since October and closed at the highest they’ve been for residential property sales in 9 years, as well as the second highest on record (46.2% above the 10-year sales average). According to MLS®, there were 3,524 sales in Metro Vancouver; a 40.1% increase compared to the 2,516 sales in November 2014.
Working with a realtor has never been so important as it is in the current state of the market. To compete with the high demand and fewer housing choices, fully understanding the options out there is where your realtor is an invaluable resource. “Demand remains strong and there are housing options at different price points throughout the region,” affirms the Real Estate Board of Greater Vancouver’s president Darcy McLeod.
To give you an idea of how this record-breaking month came to pass, here’s November by the numbers:
New Listings (detached, attached, and apartment) for November: 3,392
12.5% increase from November 2014
Total Active listings on MLS®: 8,096
35% decline from November 2014
Sales-to-Active-Listings ratio: 43.5%
Benchmark price for all residential properties in Metro Vancouver is $752,500
17.8% increase from November 2014
Benchmark price for a detached property is $1,226,300
22.6% increase from November 2014
Detached property sales totaled 1,335
31.9% since November 2014 and 44.2% since November 2013
Benchmark price for an apartment property is $435,000
14% increase from November 2014
Apartment property sales totaled 1,553
47.6% increase from November 2014
Benchmark price for an attached unit is $536,600
11.3% increase from November 2014
Attached property sales totaled 636
40.7% increase from November 2014
*REBGV Editor’s Note: Areas covered by Real Estate Board of Greater Vancouver include: Whistler, Sunshine Coast, Squamish, West Vancouver, North Vancouver, Vancouver, Burnaby, New Westminster, Richmond, Port Moody, Port Coquitlam, Coquitlam, New Westminster, Pitt Meadows, Maple Ridge, and South Delta.
Eat in by taking out (or having delivered) some of the city’s best cuisine this Christmas. We love the idea of home cooking, and it’s even better if someone else does it--and the clean-up--so all we have to do is invite our loved ones to join us and enjoy their company over good food.
The following establishments made our short list of delicious options this year. We’re sure even Santa would approve of this list:
845 Burrard St., (604) 682 - 5511: ask for Room Service (ext. 34)
3105 Oak Street, (604) 733 - 4838
This local institution prides itself on providing high calibre food, so you’ll be serving up nothing short of deliciousness come Christmas. Their Happy Holiday Dinners range from Individual Turkey Dinners ($15.99+tax) to Half Turkey ($109+tax), Full Turkey ($189+tax), and Full Turkey with all the sides including in-house cranberry sauce and gravy ($159+tax for a half size and $289+tax for a full). Pick-up, delivery, hot, or cold; it’s your choice any time before Christmas.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.