The housing market continues to leave us asking more questions this year than it is answering. This reminds me of an Adam Robinson quote I heard in a recent Tim Ferris podcast in which he's discussing the effect of investors over analysis of markets ending with "... the world always makes sense, we just don't understand it". While our market may leave many of us wondering what factors are impacting sales, prices, and the like, it's the combination of many, many, more inputs, both macro and micro, that determines the results/conditions we are seeing.
In last months update I had noted that there appeared to be some change in the air as the detached housing market had seen a considerable uptick in sales. Well, sales of detached housing on both Vancouvers East and Westside saw a decrease in sales activity.
- Vancouver East saw 140 homes sell in May and just 98 in June.
- Vancouver West saw 91 homes sell in May and just 79 in June.
Inventory levels of detached homes haven't increased significantly so Vancouvers single-family detached market remains in balanced market territory.
Sales of condos and townhouses, the segment of the market we've seen the strongest sellers market conditions throughout 2018, continues to be favourable to the seller in most areas of the city. While sales were down in the attached market city wide the sales-to-active ratio would still suggest the conditions favour the seller and may well have upward pressure on prices.
- Fairview saw 55 units sell in June and with an inventory of 98 listings is staunchly in Sellers market territory.
- Kitsilano with 101 listings available and 38 sales in June is also very much in Sellers market territory.
Buyers in todays market are still very clearly seeking out value.
On the Westside of Vancouver the mark in June was $1.25 million for attached homes where we see a precipitous drop off in sales-to-active ratios. Condos and townhomes priced under this market accounted for 82% of total sales in June.
- Attached product on the westside priced under $1.25 million currently at 48% sales-to-active ratio (375 listings / 180 sales)
- Attached product on the westside priced over $1.25 million currently at 12% sales-to-active ratio (314 listings / 39 sales)
On the Eastside of Vancouver this mark in June was $900k. Condos and Townhouses priced under this mark accounted for 84% of total attached sales for the month of June.
- Attached product on the eastside priced under $900k currently at 48% sales-to-active ratio (298 listings / 144 sales)
- Attached product on the eastside priced over $900k currently at 22% sales-to-active ratio (121 listings / 27 sales)
In Downtown Vancouver this mark in June was $1.5 million. Condos and Townhomes priced under this mark accounted for 86% of all sales in the downtown in June.
- Attached product in Downtown Vancouver priced under $1.5 million currently at 32% sales-to-active ratio (422 listings / 135 sales)
- Attached product in Downtown Vancouver priced over $1.5 million currently at 8% sales-to-active ratio (265 listings / 21 sales)
These are pretty considerable differences in market conditions and what leads me to describe our current market as a fabulous "move-up" market. For instance, if you're an owner of a 1-bed condo in Downtown Vancouver you may look to take advantage of seller market conditions on the sale of your condo. Then, take advantage of buyer market conditions by moving up the property ladder and looking to buy a larger, more valuable, home elsewhere in the city.
To conclude, there is always opportunity to be found in every market. At this time I'd suggest those looking to increase the size and/or value of their current home are those that the current conditions are most advantageous to.
As always if you'd like to discuss your situation and goals; do not hesitate to get in touch.