The North Shore real estate market through April was buoyed by demand for strata title properties which continues to far outpace supply.
In North Vancouver, sales were down 29% from April 2016, while West Vancouver saw sales decrease 31%. (As mentioned in past reviews, the first half of 2016 saw record sales across the North Shore, so it was expected that sales would be down.) Compared to the 10 year average for April, North and West Vancouver sales were only down 4% and 13% respectively.
Despite this sales activity that would suggest the market is on a decline, the absorption rate (sales-to-active listings) shows an active market. In North Vancouver, the absorption was 56%, with condos the strongest segment at 88%. In West Vancouver, the absorption was 19%, with condos the strongest segment at 46%. (Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.)
Moving forward, we expect the market to continue at a similar pace.
If sales remain on the decline, in the face of low inventory, look for inconsistencies in the market, as some properties sell quickly and possibly with multiple offers, and others take time.
Historically the market slows around a provincial election as buyers and sellers gauge if there will be a change in leadership and what that means for our economy. This doesn’t seem to be motivating many around this election, but may factor into some decisions after the May 9th vote.
As always, if you have any questions about our North and West Vancouver real estate market review, how it relates to your home investment property, or implications for your next purchase, we’d be pleased to discuss with you. We can be reached at 604.983.2518.
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|North Vancouver Listings and Sales Stats|
|Average Sale Price [SF] ($)||1,900,000||1,680,000||+13.1|
|Days on Market||9||8||+12.5|
|West Vancouver Listings and Sales Stats|
|Average Sale Price [SF] ($)||3,500,000||3,317,500||+5.5|
|Days on Market||15||17||-11.8|
Sales, listings, and price data from the Real Estate Board of Greater Vancouver. *Days on Market and Average Sale Price are calculated as the Median amount. Medians not available for periods with less than 20 sales.