Vancouver Detached Market Softens, Attached Prices Push Forward
If you read either of my latest Vancouver Detached Report or Vancouver condo Report you’d already know these two markets are going in very opposite directions. Unfortunately there’s a lot of stats out there confusing a mass of Vancouverites.
With the latest August headlines proclaiming a rebound in sales and prices what they fail to take into account is we are comparing August 2017 to August 2016, the same month a once in a lifetime foreign buyers tax was introduced. A policy which instantly halted activity and sent sales and prices plunging.
To get a more accurate picture, I have taken a year to date approach. Comparing January 01 to August 31, each year, for the past 7 years. That’s a full 8 months worth of data to look at, not just one month. Here’s how the market shapes up.
Vancouver Detached Average Sales Price Down 9%
For January 01- August 31, 2016 the average sales price of a detached home in Vancouver was $2,864,520.00. Comparing the same time frame this year, the average sales price was $2,607,377.00. That’s a 9% drop.
The median sales price dropped even further, from $2,339,000 to $1,980,000, a 15% decline.
Perhaps even more telling was total dollar volume (money spent) was down 36% this year. From $7,258,694,631 to $4,622,880,039.00.
Vancouver Townhouse Prices Still Climbing
Vancouver townhouse prices are still climbing. From January 01-August 31 the average sales price increased 11% while the median sales prices surged ahead by 12%.
Meanwhile, the total dollar volume also inched ahead by 3%, totalling $738,886,778.
Vancouver Condo Prices Increase 10% Year to Date
As I have highlighted in the latest Vancouver Condo Report, condo prices continue to accelerate on a monthly basis. This is also noticeable when comparing year to date price movements. The average sales price is up 10%, while the median sales price is up 13% year to date.
Interestingly, the total dollar volume for Vancouver condos has sunk 4% year to date. So we have rising prices with total dollar volumes falling. Generally this is considered a bearish signal in the investment world, although it’s likely way too early to call as the sales to actives ratio is still at a whopping 63%.
I’ll be keeping an eye on these metrics moving forward, with a year to date update at the end of 2017.