It’s an unpleasant reality for home sellers in Vancouver, but it opens the door for people looking to buy. Whether it’s a detached house, townhome or condo, the numbers do not lie. Vancouver’s real estate market has taken a dramatic turn.
Six months ago, a 1,700 sq. ft three bed, three bath townhome in the Killarney area of East Vancouver would have sold in a flash with an asking price of $1,300,000. Today, the same listing would be gathering dust.
Sellers are having a hard time adjusting to their price points. Listings are way up and sales are way down since March 2018.
As you can see from the graph above, the detached properties are in buyer’s market territory, with condos and townhomes almost there too. The Real Estate Board of Greater Vancouver (REBGV) considers any level below 12 to be a buyer’s market, and any level above 20 a seller’s market.
With eight sales per 100 available homes, detached houses have been in a buyer’s market for some time. But if current trends continue for just a few more months, all the residential real estate in Greater Vancouver will be in a buyer’s market.
The REBGV is trying to paint a rosy picture, pointing out buyer’s have much more selection and time for property inspections, but as realtors try to get sellers the best price, some are delisting properties and re-posting them as new to disguise a drop in price.
This is a dishonest practice and I think in a market like Vancouver, there is always frustration for buyers. The key is to work with your realtor who will have an audit trail of property listings and adjusted price points.
Many asking prices are now below assessed value, some by hundreds of thousands. There is more supply coming on the market so buyer’s have more opportunity.
Income producing assets
Ever heard of “buy high” school of investing? It’s for people who jump late onto investing trends and end up exposing themselves to more downside risk than upside potential. Smart investors don’t miss real estate investing. They just say they’d prefer to wait for more attractive prices.
With Vancouver real estate entering into a new era, and is nothing like the old one, it is definitely a good time, if you have been sitting on the fence, to consider purchasing an investment property.
We have crunched the numbers for you to help you decide if purchasing an income producing asset is right for you. If you are a seasoned investor, you will have seen how cyclical the Vancouver real estate market is. In the long run, you will come out on top.
If you decide to sell your investment property ten or 15 years from now, you will benefit from the generous capital gain the Vancouver market offers compared to other North American cities.
If you would like me to crunch the numbers specific to your personal circumstance or if you would like a recommendation for a trusted Real Estate Agent in your area, feel free to get in touch and I would be more than happy to help.
