August 2018 – Patrick Weeks Real Estate News

General notes about the Vancouver Real Estate Market

August 16, 2018 – Please note these comments are generalizations based on my personal experience with the market. Real estate numbers are often lumped together which can create a watered-down version of what’s actually happening.

I have broken down my analysis into four sectors of the market.

Vancouver West Detached
This market has seen the biggest decrease in value. Last year the entry point in to this segment of the market was north of $2,000,000 but there are currently 12 homes on the market under $2,000,000 that are freehold detached properties. The high-end newer homes have shown very small decreases in value as most of these owners fall into the category of not needing to sell. As a result these properties either get taken off the market if the Seller doesn’t get the price they want or never come to market in times like this. The Vancouver West detached benchmark price is currently $3,356,500 which is a decrease of 8.4% since last year. The properties that have seen the largest decrease in value are those that are deemed mainly as land value, including lots with older homes and houses with character merit. We’ve seen the value on these kinds of properties decrease anywhere from 15-25%. With fewer sales in this segment of the market these changes are more anecdotal and not reflected in the general market statistics.

Vancouver West Attached – Condos, Townhomes and ½ Duplexes
This market is currently holding its own. We’ve seen a decrease in sales of higher end properties such as luxury condos and larger units since this time last year. Prices are still going up, but sales are going down. I think this market has the highest likelihood to see a significant price change in the next 6-12 months. The entry-level and mid-range properties are seeing a fairly balanced market with listings taking longer to sell.

Vancouver East Detached
This market continues to remain strong, especially for move in ready homes under $2,000,000. The entry point into the market around $1,300,000 for East Van is holding steady. The Vancouver East Detached market is seeing a benchmark price of $1,535,500 which is only down 1.7% since last year. There has been a sharp decline in “hot listings” coming on the market since the end of May. This speaks to sellers who have nice properties that don’t want to list when the market is slow. Newer homes around Main and Mount Pleasant are in the highest demand with little inventory. These prices are also holding around $2,300,000 – $2,900,000

Vancouver East Attached – Condos, Townhomes and ½ Duplexes
Prices are generally off around 5-10% since the beginning of this year. Properties are staying on the market much longer and bidding wars are a rare occurrence. This market is driven by affordability and less by speculation. If buyers find renting to be a better option in this segment, they will often hold off on purchasing.

The takeaways from this update are:
  • This is an excellent time to upgrade from a condo or townhome to a detached home especially in East Vancouver.
  • This is a good time to purchase a detached Westside home as inventory is high and sellers are often willing to negotiate substantial discounts as the market continues to soften.
  • The market has slowed down from decreased speculation, increased taxes and waning buyer confidence in the market.
  • Quality detached properties in excellent locations will continue to remain in demand regardless of real estate market conditions.
My team and I have sold over 50 homes totaling $70,000,000 in sales so far this year. Our industry leading marketing systems and expert buyer representation are proven to be valuable in the current market. We are grateful to be ranked 7th out of approximately 14,000 Greater Vancouver Realtors year to date. If you would like to discuss your real estate goals I’d be happy to sit down and help you map out a game plan for success.

Sincerely,
Patrick Weeks
Nancy Ho
Devin Roch
Ayla White
realtybloc