House Market Update
Much of the same market conditions exist in the house market as in the condo update below. The difference continues to be even less supply and more demand, which is forcing prices to increase at a faster rate than condos. Many areas are likely to see average house price increases for the year enter double digits. Land remains at a premium and while there are still specific “hot neighbourhoods” outperforming the rest, the sheer scale of the demand has reached the point where every neighbourhood within the Vancouver city limits is affected. Builders are now willing to compete for single family lots almost regardless of their location and buyers are more willing to look at less developed pockets ahead of leaving the city completely. Less gentrified areas therefore offer very attractive opportunities for investment over the coming years.
Condo Market Update
As predicted in my last newsletter, 2014 has been a very stable year across the board in the City of Vancouver. The height of the Spring market, as also predicted, was slightly later than is traditionally the case, with the month of June being the busiest. The volume of sales has been higher every month when comparing 2014 to 2013. Inventory levels remain steady with many areas experiencing a shortage of realistically priced properties for sale. Expect condo prices to increase modestly in nearly all areas by the end of the year. Interest rates remain low but a significant rise could cool the market, even if still at historically low levels. While that is not anticipated in the next few months, if and when it does happen it is likely to have the most impact on first time buyers. This is worth bearing in mind when choosing the type of property/neighbourhood/demographics to buy into and what drives them.