The North Shore real estate market continued to outperform 2016 activity through October.
In North Vancouver sales were up 48.5% from October 2016 driven largely by condo sales which jumped 71.2% from last year and 50% above the 10 year Oct average. The increase in condo sales came despite total apartment listings down 25.4% from last year. This resulted in strong upward pressure on pricing; with an absorption rate (sales-active listings) of 74.9% (anything above 20% is considered a seller’s market). To end the month, the average sale price of a North Van condo was $700,000, a new all-time.
Townhomes/duplex sales rose 27.6% and were 33% above the 10 year Oct average. To end the month, the average sale price of a townhome/duplex was $1,000,000, the second highest average sale price of all-time.
While detached houses saw an increase in sales over Oct 2016, up 30.6%, they trailed the 10 year Oct average by 9.1%. The absorption rate was 22.1%, nearly in-line with a balanced market (a balanced market is indicated by a sales-to-active listings ratio between 12% and 20%). The average sale price of a single family house was $1,675,000, the lowest average seen in North Vancouver in 8 months.
In West Vancouver sales were up 18.9% from October 2016 yet were down 21.4% from September and 48.7% below the 10 year Oct average.
New listings were up 36.9% from last year and are 13.5% above the 10 year Oct average.
Total listings have steadily risen throughout the year and are now nearly back in line with historical levels, down only 3.6% from the 10 year Oct average.
The result, West Vancouver real estate remains firmly a buyer’s market, with a sales-to-active listing ratio of 6.9% (below 12% is a buyer’s market). The average sale price of a house in West Vancouver in October was $2,518,000.
Why the jump in sales in October? A lot of the activity can likely be explained to buyer’s purchasing with expiring mortgage rate preapprovals. (lenders will typically hold an interest rate for 60-90days) We had several sales with quick closes during the month so buyers could avoid a nearly 75 basis point increase in mortgage rates.
On top of this, many buyers are trying to get into the market before the new mortgage lending rules come into effect in January 2018.
Moving forward, it is likely that this increase in activity will be temporary and the market will trend towards greater balance. If you are considering selling, now may be a good time to take advantage of the conditions while prices remain at historical highs.
If you have ever wanted to move from North to West Vancouver, this is a great market to benefit with current market conditions.
If you are looking to buy, be strategic and plan for a long term hold, as the coming months and into the new year will likely see inconsistent sales as the market reacts to the new lending requirements.
As always, if you have any questions about our North and West Vancouver real estate market review, would like to discuss the value your home or investment property, or have questions about an upcoming purchase, we’d be pleased to discuss with you. We can be reached at 604.983.2518.
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|North Vancouver Listings and Sales Stats|
|Average Sale Price [SF] ($)||1,675,000||1,570,000||6.7|
|Days on Market||10||11||-9.1|
|West Vancouver Listings and Sales Stats|
|Average Sale Price [SF] ($)||2,518,000||3,125,000||-19.4|
|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.
Click here to read the Real Estate Board's October Stats Report
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