Benchmark Price for Detached Homes in Vancouver Fall Slightly to Hit 1.4M
“According to the Real Estate Board in Greater Vancouver, benchmark prices for homes in Vancouver (Metro) have dipped to the lowest levels in more than 30 years,” says Vancouver Townhouse Realtor Ariane Benjamin.
What exactly does that mean? Earlier this month, the board announced that home sales in March had dropped more than 31% compared to 2018. Only 1,727 homes were sold in the region—the lowest total for March since 1986.
Despite the rather tentative attitude of buyers, more homes were listed this year than last. Almost 4,950 residential properties—11% more than last year—hit the markets in March.
“Although many home buyers hope the downturn in sales will trigger a price drop, the benchmark price for a detached home dipped to just over $1.4 million, which is only about $100,000 less than a year earlier. For condos and townhouses in Vancouver, we’ve seen the price fall by about 6% year over year, bringing the benchmark price to $656,900 and $783,600 for condos and townhouses respectively,” explains Ariane.
Although many experts predicted that falling prices would trigger a rush of interested parties previously priced out of the market, this doesn’t seem to be the narrative taking place in Vancouver.
Housing prices and affordability have to line up, and with new requirements like the stress test and higher interest rates, owning a home is actually getting less affordable even as prices come down.
“The stress test raised the qualifying income threshold by $36,000 in Vancouver,” says Ariane. “This means people are focusing on smaller, older homes and there continues to be interest in the condo and townhouse market, which offer a more affordable entry point to home ownership in Vancouver.
Homes in Vancouver: Looking to buy or sell a townhouse in 2019?
As an experienced townhouse realtor in Vancouver, Ariane Benjamin has been tracking and studying townhouse sales and neighbourhood trends for over 15 years. Her one-on-one approach to buying and selling emphasizes a customer-first attitude and allows her to deliver results and value. Call (604) 779-1500 to set up a complimentary consultation with Ariane today.