Early Signs Regarding Housing Market
With the housing correction made by the BC Government 7 months ago, due to the 15% tax on foreign nationals buying real estate, The Vancouver Real Estate Market is starting to see changes. In the past month alone, Vancouver sales have leaped by close to 50% on a month to month basis. Although the home buyer tax quelled purchasing markets temporarily, people are starting to rush back in. One of the largest demands is within the condo and townhouse sector. A huge swing in April for these two markets is seeing robust buyers demand. This is a perfect time for sellers to take advantage of.
Over the next six weeks, there will be serious traction within the housing market in Vancouver. President of the Greater Vancouver Real Estate Board, Jill Oudil says “It is a different story in our condominium and townhome markets. Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm.”
Great Time To Sell Your Condo/Townhome
With the information from both Royal Lepage CEO and the Real Estate Board, putting your Condominium or Townhouse on the market now could easily put extra cash in your pocket. With the Condo/Townhome market making up over 68% of all residential sales in the Vancouver area, multiple offers are becoming the norm and bidding wars are making this area of the market a hotbed for sellers.
“Until more entry level, or missing middle, homes are available for sale in our market, we’ll likely continue to see prices increase,” Oudil said. Although record numbers of builds are happening within the area, most of those are not ready for market, and the inventory of available condos and townhomes substantially falls behind the current demand.
Rest of Vancouver Market Still Feeling Crunch
“It’s worth pointing out that according to the realtors each (segment) of the market is a seller’s market still,” said Porter, chief economist with BMO said, referring to detached, condominium and townhomes. Although the overall Vancouver market is still feeling the crunch of the housing correction, confidence that an end is in sight and the market will balance out, are on the horizon. Vancouver house prices are up compared to the 1st quarter of 2016, and that is a motivating sign for homeowners to list their properties now.
Standard pricing for an apartment-style condo is up 3% to $554,000, and a 16.6% rise from 2016 has been determined by the Greater Vancouver Real Estate Board. With the prices of single family homes still out of reach for many buyers, the Condo and Townhome market is becoming a viable alternative financially for many home buyers in the Greater Vancouver area. White picket fences are being replaced by families that are looking for affordable housing options.