2015 Housing Market Outlook Report from Remax.
Greater Vancouver maintained its status as the most expensive region in Canada for residential real estate in 2014. The average residential sale price was approximately $838,400 in 2014, an increase from $781,517 the previous year.
Off-shore buyer demand from Mainland China continued throughout the year. Activity for detached houses was strong. Some properties are still attracting multiple offers and selling for above the list price, which is a sign of continued buyer demand.
In 2015, RE/MAX expects that there will continue to be upward pressure on detached house prices in the Westside due to high demand and low inventory. However, the condo and townhouse markets will likely sustain a more balanced market. For detached homes, unit sales from August to October were down three per cent from the same three-month period last year due to lack of inventory. Condo unit sales were up 19 per cent for the same period, and townhouse unit sales were up 17 per cent.
It is projected in Greater Vancouver, the number of unit sales should remain largely the same, while house prices will see an increase of around three per cent.
After losing multiple offer bids for detached houses in East Vancouver, buyers may become more hesitant to continue their pursuit of buying a detached home in 2015. However, as those potential buyers move to the sidelines and wait for the market to stabilize, the pipeline of demand for the region will continue to grow.
Across Vancouver, young families and equity downsizers will drive demand. Buyers who cannot afford detached Westside homes will take advantage of the relative affordability of townhouse living. Demand for Westside homes will continue to be driven by off-shore buyers who can afford to pay the two million dollar-plus price tag.
Interest rates have not shown any sign of change, and this stability creates optimism for East Vancouver’s housing market in 2015. Year-over-year, demand for housing in Vancouver continues to grow. There has been no substantial pullback to that demand as Vancouver is recognized locally and internationally as a very desirable place to live.
Affordability remains an issue for many who simply cannot afford even a condo on the Westside or downtown.
Article taken from: www.remax.ca