Vancouver Real Estate Update - Dec 2010
You can't argue with the numbers (much as I would like to). The months of inventory index for Westside detached homes has fallen four consecutive months in a row; in November to under 3 months. The average sale price of a detached house on the Westside remained over $2 million dollars in November. If months of inventory stay like this, we can expect these strong sales prices to continue for a little while to come. The attached and apartment months of inventory numbers fell for the 2 month in a row and both of them are sitting below 5 months of inventory. Prices have ebbed and flowed in these two catagories but over the year they have remained relatively stable with a downward tendency in the last several months.
The inventory and sale price numbers for detached homes continue to surprise, so I have dug a little deeper into the details. Nearly half of all the detached Westside homes that sold over the $2,091,276 average price were sold in Shaughnessy or South Granville, most of the remainder being found in surrounding Quilchena, Kerrisdale, Mackenzie Heights, Dunbar and also in Point Grey. An interesting note is that the vast majority of these homes sold to Chinese buyers. Only a couple of the homes that sold over the average were in Kitsilano and none of the homes were in Fairview. Only one home was sold over the average east of Cambie Street. This tells us a few things we already know: one, Shaughnessy is an expensive neighbourhood and two, that Chinese immigration is having a significant impact on home prices in Vancouver. It also tells us something interesting: that homes in Kitsilano, Fairview, Cambie, Oakridge and Mount Pleasant remain, in relative terms, affordable.
Click on this link for an interesting read about Chinese immigration and the Vancouver Real Estate Market:
Globe and Mail Article
If you are holding investment property, I would highly recommend taking advantage of the present situation to sell it at peak pricing. If you are shopping for a Westside home, your best bang for your buck is in Kits, Fairview and and east of Cambie Street.
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 Sam Wyatt - Vancouver Realtor