Real Estate Report - Sep 2015
The continuing spread between the increase in detached house prices and the rest of the market is well illustrated in the average price per square foot. The difference between the average price per square foot for houses and apartments is now $350 as of August. To put this in perspective an average 2500sq.ft home costs $2,587,500 vs a 2500 sq.ft. apartment at only $1,712,500 - a difference of $875,000! There has never been a better time to downsize.
The Months of Inventory (MOI*) has been extremely low for attached homes (2.07) and apartments (2.11), lows not seen since the market rebound in 2009 after the credit crisis. It was detached homes that saw MOI rise to over 4 months in both July and August.
The most significant factor in this change in MOI for houses was a decline in sales volumes rather a change in active listings. Could this be a sign of volatility in equity markets? More likely it just a typical summer reduction of sales volumes.
It has been a busy summer and it looks like it will continue to be a busy market this fall. Market conditions have never been better for downsizing and I encourage anyone thinking about doing this to act to take advantage of the situation. So far the volatility of global equity markets does not seem to have dampened enthusiasm for Vancouver real estate and no rate increase from either the Bank of Canada or the US Federal Reserve means that mortgage interest rates are likely to remain at historic lows for the near future.
*Remember that Months of Inventory (MOI) 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.
Do not hesitate to call me if you have any questions. Please pass this and my contact information along to any friends or family who might benefit from my services.
Sam Wyatt - Vancouver Realtor