Sunday, September 23, 2007

Vancouver House Prices and the State of the Property Market

West Side House Price Now Tops $1.3 million. Home buyers have driven sales in Greater Vancouver to the second highest June level in history, snapping up 4,244 properties last month, an increase of 7.4 per cent form June of 2006. The sales were slightly below the all-time sales high of 4,333 units set in June 2005, the Real Estate Board of Vancouver reports.

Prices, however, set a fresh historical record last month, as the benchmark price of detached house in Greater Vancouver soared to $715,715, an increase of 10.5 per cent from a year ago, and a startling 92.7 per cent higher than five years ago. On the West Side of Vancouver, the typical detached house price skyrocketed to $1,329.884, up 18 per cent from a year earlier.

In East Vancouver, the detached house price is now $645,729, up 7.5 per cent from June of 2006. Listings across Greater Vancouver have also increased as vendors attempt to catch the price uplift. Last month, the total active inventory increased by 17.7 per cent to 11,811 units, the Board said.

On the West Side, the benchmark price of a condominium apartment in June was $457,637, up 9.2 per cent from a year ago, while the townhome price has risen to $477,211 up 12.7 per cent.

In East Vancouver, the condo apartment price is $306,282, up 13.2 per cent from June of 2006. “Clearly, real estate continues to be seen as an excellent investment,” understated Board president Brian Naphtali.

Benchmark prices are based on Real Estate Board formula, which is more accurate than simplistic average prices.

Rents Expected to Soar in Vancouver

Apartment condo rents in Vancouver are forecast to soar, according to the Goodman Report, by Vancouver multi-family specialist David Goodman. Average Greater Vancouver one bedroom rents have increased only 21 per cent over a 10-year period while all Lower Mainland areas have sen average suite prices at least double over the same period. Goodman notes, “In our opinion, rents are moving into a catch-up mode. We predict that rents increases on suites turning over to average 10 per cent for the next 12-18 months.” Goodman also released stats on the performance of the Greater Vancouver apartment condominium market in 2006. When buying a building, the average price per suite is now $157,805. Areas such as the Eastside, Marpole, South Granville and the West End experienced a 15 per cent price increase last year, over 2005, while Kerrisdale and Kitsilano were basically flat.

First Time House Price Tops $700,000 in Vancouver

Housing sales, the number of listings, and prices increased across Greater Vancouver in May, reports Real Estate Board of Greater Vancouver. The biggest story this month is that the average price for a detached house has passed the $700,000 mark for the first time. The benchmark price of a house hit $711,245 in May up 11.8 per cent from last year. On the West Side of Vancouver, the typical house price is now above $1.3 million, while it is $697,815 in Richmond. Total sales through the Board’s MLS system reached 4,331 units int eh month, up from 4,297 in May of last year.

New real estate listings increased by 6.2 per cent to 6,149 units compared to 5,789 units listed in May 2006. The total number of active listings increased by 23.4 per cent to 11,749 units when compared to May 2006’s 9.524 units. “Traditionally May is one of the busiest periods in our market and this past month was no exception,” said Board president Brian Naphtali. According to MLS data, sales of apartment properties increased by 1.6 per cent to 1,789 sales in May. The benchmark price of a condo apartment is $358,428, up 11.5 per cent from one year ago. The benchmark price of an attached unit (townhomes and duplexes) is $439,317, up 10.8 per cent from a year ago. Sales of detached properties increased by 2.3 per cent in May 2007 to 1,805 sales. “these facts show us that despite continued price increases, appropriately priced properties are still finding the right buyers,” explained Naphtali.


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