The East Vancouver detached house market has been the most interesting market over the last few years, and with the new mortgage rules affecting everyone looking for a detached property it should be an interesting start to the year. The sales to active ratio is at 15% for resale properties and 13% for new developments.
One of the key things to remember with the detached market is the type of property, and unfortunately it’s tough for these stats to differentiate. There are a lot of older houses that need significant renovations which aren’t appealing or approachable for most Buyers looking to get into the detached market. The cap rates for Developers aren’t quite there in most cases either, and so these properties sit on the market at a price higher than their current value with Sellers who are restate to dropping their price. So even though inventory is quite high, the number of properties that Buyers are actually looking for is quite low.
The average sales price for detached houses is almost $1.8-million for a re-sale property and about $2.5-million for a new development. You can certainly find slightly more affordable detached properties but the competition is high and they are few and far between since they’re often on smaller lots. Inventory dropped significantly in December for re-sale properties, so it will be interesting to see if these properties hit the market again in the new year, and if they understand that a drop in price will be needed to get the property sold. For detached Buyers looking to get into a big renovation, do your homework beforehand and start chatting with contractors to get a sense of what to expect when it comes to a potential timeline and budget, and chat with your mortgage broker a bout how to finance it.
Take a look at the numbers:
Total Inventory – New vs Resale Detached Houses:
Average Sale Price – New vs Resale Detached Houses:
With the new mortgage rules, chatting with a good mortgage broker who can help you take advantage of your current
equity is really important to ensure you’re off to a good start. We are happy to recommend these folks, Pinsky Mortgages
Don’t hesitate to contact us if you are starting to think about sale of your home in East Vancouver and want to chat about your options – there is a lot to consider, and renovations/staging and marketing can make a big difference in your sale. We can help you make sense of your options and what to expect.