As we move into the festive season, we are seeing the expected slow down in the real estate market. Sales were 30% below the 10 year average for the month of November, in Vancouver. This has been a common theme for 2012, especially in the latter half of the year.
One of the biggest contributors to these conditions was the reduction of the maximum amortization period from 30 to 25 years for high ratio mortgages (ie: less than 20% down on the purchase price) in June. This took many would-be first time home buyers out of the market.
We continue to see fewer new listings come onto the market, contributing to an overall reduction in active inventory across the city.
The hottest property segment in November were townhouses on the eastside. They had the highest number of sales since June, and a solid seller's market with just 4.6 months supply of inventory.
While median sales prices have cooled in some areas of the city, some neighbourhoods have seen significant increases, year to date, comparing 2012 to 2011. Some notable examples are:
-West End condos are up 10% to $464,000 from $422,500
-Shaughnessy detached homes are up 12% to $3,918,000 from $3,500,000
-Knight condos are up 17% to $428,000 from $366,900
-Both Fraser and Fraserview detached homes are up 10% to $899,000 and $1,100,000 from $815,000 and $1,000,000 respectively
Conversely, neighbourhoods that have seen the biggest declines are:
-Coal Harbour condos down 7% to $787,000 from $850,000
-Kerrisdale condos down 9% to $$525,000 from $580,000
-Grandview condos down 16% to $345,250 from $412,000
-Main condos down 10% to $446,000 from $493,000
Here's a quick snapshot of info:
*Month's Supply Key:
Seller's Market = 1-5 months
Balanced Market = 5-7 months
Buyer's Market = Over 7 months
Source of data: Real Estate Board of Greater Vancouver
Please don't hesitate to get in touch if you have questions about any of this information. Likewise, give me a shout if you'd like more information on your own home or neighbourhood, or are thinking about jumping into the market.