G’day East Van!
The real estate market in East Van has been pretty active, making it a nice & balanced market for everyone! There have been a lot of opportunities out there thanks to a soft market and some buyers have been taking advantage of it. Good properties, or those priced sharp, are selling quickly (and sometimes in multiples). In the excitement of seeing new listings hit the market every week, it seems buyers are forgetting about what was listed previously that hasn’t yet sold, so there are still some good units out there that wouldn’t have the same competition that a new listing may have, and more negotiation room.
The best piece of advice I can give buyers right now is to be prepared to move on something good. Make sure you know what you can afford, are getting good advice from an agent and are getting out there to look at properties so you know when you see something good. The market still allows for conditional offers so if you like something, start negotiating! I’ve seen a lot of good inventory, and at good prices, especially compared to the last year or so. On the flip side, there are still some overpriced properties that might be willing to sell for a big discount.
There is a lot of conflicting information out there, so I want to remind you of something pretty important: the news that you read is often a bit behind in terms of what’s happening right now, and they are generally commenting on the detached house market across the city, rather than on specific markets and neighbourhoods. Do’t get me wrong the market has definitely softened, but that happened last summer landfill, whereas right now things are improving. I’m seeing a lot of hesitation first time buyers who are concerned about what they’re hearing in the news (the tough mortgage restrictions haven’t helped either) whereas experienced buyers are making moves since they see the opportunities and understand the ebbs and flows of real estate. This hesitation from first time condo buyers is creating a bit of logjam… if they don’t buy the 1 bedroom condos, then those sellers can’t move up to 2 bedrooms townhouses, and those sellers can’t move up to the houses.
The sales to active ratio in East Van is 9% for detached houses, 21% for townhouses and 23% for condos. The number of sales increased for each market compared to the previous month. Prices have remained fairly steady overall, with a slight decline in house and townhouse prices (expensive properties always drop more) and alight incline in condos.
The total inventory dropped in December but it has been slowing climbing since. Overall inventory levels are still fairly high compared to the last few years, so Buyers, you have more choice now that you have for the last few years. The number of sales increased this past month showing active Buyers. After chatting with quite a few Sellers recently, I can say that many were hesitant to list with the market being slow, but these positive numbers will encourage new listings and keep the market rolling for both Buyers and Sellers.
Right now, the condo, townhouse and detached house market are all having different experiences so read on for a bit more information on each.
These numbers only tell part of the story so if you’re curious about a particular type of product, want to know what to expect out there, or haven’t sat down with an agent yet, give us a call!
SALES TO ACTIVE RATIO:
EAST VANCOUVER CONDO MARKET UPDATE
The EastVan condo market statistics are showing a busy market. What I’m seeing out there isn’t overly busy, but good units are selling quickly.
Like I mentioned before, there are a lot of first time buyers out there, who are nervous thanks to the uncertainty in the market and dealing with those tough mortgage restrictions. The news talks about how the market is correcting – and it has – but I get the sense that first time buyers expect the market to be softer than it is so they’re a bit nervous to buy when they think the market is going to continue dropping. I can say that it’s better to choose a unit that you like, rather than look for a steal of a deal.
I’m also seeing a lot of first time buyers who are just starting their searches so they aren’t confident enough that what they’re seeing is great enough to jump on, but that comes with time when you educate yourself on buildings and get out to see your options. Overall, you will be getting a good unit, at a good price, at a good interest rate right now.
The 1 bedroom condo market in East Van has a 25% sales to active ratio and an average price of $515k (down 7.2% from this time last year). New listings and inventory increased slightly this past month.
The 2 bedroom condo market in East Van has a 23% sales to active ratio and a $703k average price (down 12.5% from this time last year). Inventory dropped slightly compared toast month.
The 3 bedroom condo market in East Van has a 17% sales to active ratio and a $791k average sales price (down 38% from this time last year). Keeping mind this number is highly skewed due to cheap leasehold units in South Vancouver. Inventory dropped slightly compared toast month.
I’m still seeing a wide variety of pricing strategies out there, so it’s not always easy for buyers to know what a unit is actually worth, but that’s where we come in as your agent.
AVERAGE SALES PRICE:
EAST VANCOUVER TOWNHOUSE MARKET UPDATE
The East Van townhouse market is showing some good activity. There is a lot of great inventory right now, at great prices, and the Buyers are taking advantage of it. Good units are generally selling within the first week but I’m noticing a bit of a logjam right now where
The sales to active ratio is 17% for 2 bedroom townhouses and the average sales price is $961k (down 2.6% from last year). Total inventory was up but the number of new listings was down.
The sales to active ratio is 24% for 3 bedroom townhouses and the average sales price is $954k (down 19.7% from last year).. again, leasehold units in South Vancouver negatively affect this price. Inventory and new listings increased this past month, as did sales.
Since prices have dropped for houses, I expect a lot of townhouse sellers to list their home so they can get into the detached market.
AVERAGE SALES PRICE:
EAST VANCOUVER DETACHED HOUSE MARKET UPDATE
The detached market in East Van is slowly increasing after being down for almost a year. There are definitely some deals, and Buyers are noticing. I find Buyers looking to get into the EastVan detached market still need a solid revenue stream from a good suite so those types properties are seeing the most activity. Prices have dropped the most in this market, not surprising since the most expensive markets always drop the most.
I have a new way of presenting the stat this month. I’ve broken them down into re-sale houses on lots smaller than 4400 sqft (i.e. standard lot size), re-sale houses on lots bigger than standard lots and new construction houses (on any lot size).
The sales to active ratio was 11% for re-sale houses on standard/small lots with an average sales price of $1,328,175 (down 14% from last year).
The sales to active ratio was 6% for re-sale houses on big lots with an average sales price of $1,618,818 (down 16% from last year).
The sales to active ratio was 3% for new construction.
The total inventory remained steady for each market, but the number of new listings dropped.
AVERAGE SALES PRICE:
As usual, don’t hesitate to contact us if you want to chat about the market and your options!