Spring 2013 Market Update
HOUSE MARKET UPDATE
After the wild fluctuations of the past couple of years (both up and down) the Westside detached market is having a more “normal” year so far. Prices adjusted down rapidly in the second half of 2012 and the market under $2,000,000 appears to have found a level function at. Land values also appear stable right now with a more balanced mix of local builders, long term local buyers, more recent arrivals and a smattering of new overseas buyers. This could all change again anytime should another wave of Chinese immigrants decide to step in but this appears unlikely for the balance of this year at least.Like the condo market however the high end luxury market is over supplied with listings and there are less buyers in this segment than there have been for some time. This will probably result in a lot of this properties being removed from the market and not selling, but if there is sufficient owner motivation to sell some further adjustment in prices may be inevitable.
The Eastside detached market is still performing well being almost entirely driven by young local families. With Main and Grandview now very established, buyers are looking to areas such as Fraser, Renfrew and Hastings East for more value and the inevitable infrastructure is following.
CONDO MARKET UPDATE
The MLS stats suggest each month that volume is still at a 10 year low but if taken in a larger context this is not surprising. On any scale, the last 10 years in Vancouver were exceptionally active and my belief is that current conditions represent a healthy, balanced, sustainable market. The number of condo listings on MLS is lower than this time last year with sellers realizing that they can sell if they are realistic about their expectations but, if not, they are better off to hold on. However, the high end luxury market may still need to make more of an adjustment as the listing supply currently exceeds the buyer pool, with less overseas buyers than when many of these projects were planned. Unlike other areas local money is less capable of jumping in at the top end even with record low interest rates.
BUYER ALERT: there is one market segment which in my opinion will significantly outperform the rest of the condo market in the city over the next couple of years. Contact me to learn more.