The red hot housing market in Vancouver is getting hotter, and one insider says it isn’t about to cool any time soon
New figures from the Greater Vancouver Real Estate Board show the benchmark price for a detached home is now 1.16 million dollars.
That’s up 17.5% compared to last August. when the average house price in Vancouver was around $957,000.
The rules of supply and demand are working for sellers more than buyers in this market
The Managing Broker at Vancouver’s Royal Lepage, Chris Simmons, says it’s simply about supply and demand.
“There is a dwindling supply of single family housing in Vancouver, single family detached housing in Vancouver. If you drive up and down the main streets, and even some of the secondary streets, single family detached housing is being demolished, multi-family dwellings are going up. Whether they are townhouses or apartment complexes.”
Detached homes a hot commodity
Over the past five years, benchmark prices for detached homes have soared more than 40 percent.
“It reduces the stock of single family detached housing, and so the people who are displaced, that’s just adding additional buyers to an already long list of buyers looking to purchase property in Vancouver when there is very little supply, so the supply is actually declining, whilst the demand is increasing.”
Meanwhile, sales also continue to surge, up to 30% above the ten-year sales average.
The era of the homeless millionaire?
One North Vancouver mom took matters into her own hands while trying to find a smaller home.
“First we were going to stand down on the corner of Mount Seymour parkway and Burkley, and put a sign that said honk if you have a home that you want to sell to me.”
Kate Whyte says that’s what she was about to resort to, after Craigslist posts, and distributing flyers, led nowhere.
She sold her five-bedroom North Van home in late April for 1.3 million, thinking she’d be able to downsize no problem.
She found out the hard way, she was wrong.
Whyte says little stock and high demand lead to bidding wars and outrageous prices.
“I appreciated our realtors a lot, but I look at them and I just think, why do you let people buy this, why do the banks let people buy this, it’s wrong. It’s just absolutely wrong.”
Whyte says she ended up in a fixer upper nobody else wanted, at nearly the same price, to stay in the community she knows and loves.
What you should do if you want to sell your house
LISTEN: Simi Sara spoke with Sara Daniels from Bay Realty about what sellers needs to keep in mind before closing that deal