Two-storey homes remain Vancouver’s most expensive residential asset class, with an aggregate price of over $1.5 million.
The latest edition of the Royal LePage House Price Survey reported that even with a 3.3% annual decline during the second quarter of the year, the asset class still commands a value of $1,509,711.
This far outstripped other strong performers in Vancouver. Bungalows declined by 7.6% to end up at $1,315,612. Condos dropped by 2.8% annually to reach $668,389.
The aggregate price of all residential property types was at $1,208,674 during Q2 2019. Considering these values and the fact that Vancouver is seeing elevated inventory, it is not surprising that many would-be buyers are adopting a wait-and-see strategy instead.
“A wider variety of available homes to choose from is giving home buyers extra time to plan and make decisions,” Royal LePage Sterling Realty general manager Randy Ryalls explained.
“A better understanding of the reality of the real estate market in the region is helping both home buyers and sellers to manage expectations and make better-informed transactions.”
Sustained decline is highly likely. Royal LePage predicted that by the end of this year, Greater Vancouver will experience a 5.5% annual drop in aggregate prices.
“Affordability in the British Columbia housing market remained on provincial and federal government agendas during the second quarter of the year. A combination of recent economic announcements including the foreign buyers tax, the speculation and vacancy tax, and the mortgage stress test contributed to elevated inventory levels and a wait-and-see approach from potential buyers,” Royal LePage noted.
“As new building construction remained on hold during the second quarter of 2019, summer home buyers will have the opportunity to choose from affordable listings before the traditional fall price uptick.”
Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth.
Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance.
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