Real Estate Report - Time to Sell?
Months of Inventory (MOI) remains at extremely low levels, indicating a continuing very strong sellers' market.
In addition to the drop in the Canadian dollar, the Bank of Canada reduced its lending rate to .75% in March. The influx of foreign capital, coupled with ultra low mortgage rates, is fuelling the super-heated Vancouver real estate market.
Prices continue to climb...
but in spite of very high sales volumes and lower than typical active listings, prices have not risen nearly as much for apartments and attached homes as they have for houses.
The good news for downsizers is that it continues to be a solid move in Vancouver. The graph below shows the dramatic change in pricing per square foot over the past decade.
Prior to 2010/2011 detached house prices remained significantly lower per square foot than attached homes and apartments. Since then, the opposite is true and the spread on price per square foot between detached homes and apartments continues to grow. The median price per square foot for detached homes in May was $909/sq.ft., Apartments were only $683/sq.ft - a spread of $226/sq.ft. For a 2000 sq.ft. home it means that there is a difference of $452,000! There has never been a better time to sell your house to move into an apartment.
*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.
By Sam Wyatt Vancouver Realtor