Vancouver Real Estate Monthly Market Update
The March Months of Inventory metric for Vancouver West sits at 5.11 for apartments as new listings outpace new sales. Attached homes are at 3.95, down from January’s 5.77 but only the detached market appears to have had a substantial decrease and is now down to 2.5 months of inventory. Vancouver West average prices for apartments reached over $628k, attached homes $905k and detached homes over $1.95m. I speculate that the low inventories for detached homes are likely due the high cost of attached homes coupled with the knowledge that interest rates were set to rise. Buyers of detached homes may have opted not to purchase townhomes and half-duplexs in favour of a house. The knowledge that interest rates were set to rise likely spurred the buying on ensuring that more than 200 detached homes were sold in Vancouver West in March. I believe that the overall trend continues to point, to higher inventories and thus to lower prices over the upcoming year though I now suspect that these changes are likely to happen over the next 6 months or so, rather than immediately. We are at near all time high pricing and I continue to advocate that if you are planning to sell in the next couple of years or are holding investment property, you should likely sell now.
Remember that: “Months of Inventory” is a measure derived from the number of active listings during a given month divided by the number of sales that month. It indicates the theoretical length of time it would take to sell all of the properties on the market if nothing changed. Historically, 0-5 months of inventory has generally implied upward price pressure for the ensuing six months, 5-8 months of inventory meant a flat market with respect to pricing and over 8 months of inventory has, for the most part, precipitated downward price pressure.
By Vancouver Realtor - Sam Wyatt