Vancouver Real Estate: Detached Housing Prices Tumble, Townhouses Stay Strong
Vancouver real estate agent Ariane Benjamin has been carefully watching the market ever since the new housing rules came into effect. As a realtor who specializes in townhouses, the effects of the higher lending rates in tandem with tougher mortgage rules, taxes, and restrictions have been immediate and impactful.
“Mortgage amounts and lending have become more restrictive. So, while pricing on high-end detached homes is sliding, there is still plenty of demand for condos and townhouses in Vancouver,” says Ariane.
The Real Estate Board of Greater Vancouver reported that 2,833 properties were sold in its region in May, a decline of 35.1 percent year over year. However, May’s sales were up nearly 10 percent since April.
“This is well below the 10-year average,” says Ariane. “What we’re seeing now is that when the total number of single detached home sales is divided by total listings for that type of property (listing to sales ratio), the result is 14.7. That’s nearing the point when people can start negotiating—a buyer’s market. However, the ratio for townhomes and condominiums remain high, sitting respectively at 30.8 percent and 41.7 percent for condominiums. In other words, there’s still not much room for negotiation when it comes to these properties.”
Last month, the number of detached properties that sold across Metro Vancouver fell 40.2 percent year over year, while the benchmark price rose to $1,608,000—a 2.4 percent increase. The number of condominiums and townhome properties sold also staggered. However, the benchmark price for condos was up 20 percent to $701,700 and townhomes jumped 16 percent to $859,500 over the same period.
“A lot of people are waiting to gauge the long-term impacts of all the changes,” says Ariane. “And while homeowners may have to be more cognizant when it comes to price setting, there’s still plenty of people looking for housing—particularly when it comes to condos and townhouses in Vancouver.”
For advice when it comes to buying or selling townhouses in Vancouver, request a free consultation with Vancouver real estate agent Ariane Benjamin. Contact (604) 779-1500 or ariane@vancouvertownhouse.ca to set up an appointment today.