Condo prices rise – How much will my home really cost?

Vancouver Condo Prices Move Up To $135,000 Higher In a Single Month

How much will my home really cost? You probably didn’t think Vancouver real estate prices could get any crazier, but here we are. Numbers from the Real Estate Board of Greater Vancouver show a softer detached market, but condos are making surreal jumps in prices. Generally the market saw higher prices, less listings, and even less sales – yet prices still soared.

Prices Are 2.9% Higher Than The Month Before

The benchmark condo prices made a big leap higher in June. The price in Greater Vancouver is now $600,700, a 2.9% increase from the month prior. This represents a 17.6% increase from the same time last year. While that seems steep, one area in particular stood out in the stats – West Vancouver.

West Vancouver

The benchmark condo price in West Vancouver reached $1,168,000 – a 5.1% increase from just one month before. To put how big of a jump that is into perspective, it is $135,000 more than the month before. That’s about $4,500 per day, almost a month of gross pay for a family in the area. It’s kind of hard to say that prices are rising using any fundamentals at this point.

Sales Are 9.6% Lower Than Last Year

Sales are slipping across Canada, and Greater Vancouver was no exception. June saw 1,905 condo sales, a decrease of 5.92% from the month prior. This also represents a 9.6% decrease from the same time last year. Like we’ve noted before, sales tend to slip as prices get higher, since more and more people will be priced out of the market.

Listings Are 6.42% Lower From Last Year

Listings continued to decline in the condo segment, dropping the selection for buyers. June saw 2,170 listings, a 10.8% decline from the month before. Listings seasonally drop at this time, but this is a 6.42% drop from the same time last year. The drop in inventory was less than the drop in sales, so the decline in listings shouldn’t experience all that much additional pressure to prices – although buyers didn’t agree.

No, it doesn’t make a lot of sense that listings are dropping, sales are dropping faster, and prices are making monster moves higher. Buyers are likely panic buying, with the fear that they will be locked out of the market forever. Apparently the belief that prices always go up is alive and well in Vancouver.

What can we do for you?

Once you know what type of dwelling you would like to live in, and where you would like to be located, we can help you determine what you can qualify for. Our experienced Mortgage Advisors understand that the purchase of a home is not the only expense you will need to take into consideration. Take a look at our page, "How much will my home really cost?" to get some ideas, and then contact Client First Mortgage Solutions today! You won't regret it!

Original Article - Better Dwelling - July 19, 2017