Real Estate Report: HOT MARKET!
Months of Inventory is the lowest it has been for Apartments (2.21) and Attached homes (2.77) since late 2009! It is also the lowest since spring of 2011 for detached homes (3.54).
It has been a very busy market and Vancouver's real estate has benefited, yet again, from larger global forces. The drop in global oil prices has drawn the value of the Canadian dollar down with it. In early 2013 the dollar was at parity with the US dollar but is now about 20% lower. This dramatic change has lowered Vancouver prices for foreigners operating in $USD by about the same 20%. Offshore money was flowing again in February and March.
The tight market saw the Westside Detached HPI Price Index jump by about $100k between January and March for detached homes. Anecdotally, lot value sale prices jumped nearly $200k on the Westside. Apartments and attached homes have seen tight inventories and plenty of sales activity but more modest price increases as a whole. In general, the lower the value of the home, the smaller the percentage increase in value has been over the last couple of years. Even in the midst of this hot market, some who bought apartments in as long ago as 2011 may be selling at a net loss.
Downsizing continues to be a great bet in Vancouver. The graph below illustrates how great a change in pricing per square foot has changed over the past decade.
Before 2010/2011 detached prices were always lower per square foot than attached homes and apartments. The reverse is now true and the spread is enormous. The median price per square foot for detached homes is $866/sq.ft., its highest ever. Apartments are only $680/sq.ft - giving us a spread of $186/sq.ft. For a 2000 sq.ft. home it means that there is a difference of $372,000! In short, there has never been a better time to sell your house to move into an apartment - even of the same size. I have recently helped clients do this very thing. Not only does free up capital, but it also frees up time spent maintaining your residence! Do let me know if I can help you put this plan into action.
By Sam Wyatt - Vancouver Realtor