demand softening as 2017 closes?

(January 07, 2018 , posted in West Vancouver Strata)


West Vancouver condominium market experienced seller market conditions from January to September this past year and then transitioned for the balance of 2017 with supply and demand about the same creating more balanced market conditions.

Several factors influence the residential real estate market, including mortgage interest rates, inflation, employment, investment, construction, immigration, government assistance programs, and the health of local and world economies. All of these influence the supply and demand of the market which, in turn, affects prices.
There are three classifications experts use to describe the balance of supply and demand in the housing market:
Seller's market
A seller’s market is when there are more people looking to buy then there are homes available. This causes a rise in price above the long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio of 20% or higher.
Buyer's market
In contrast, a buyer’s market is when there are many more homes for sale than there are buyers. As a result, prices increase slower than the long-term average rate of inflation. In extreme circumstances this can cause prices to decline. Typically this is indicated by a sales-to-active listings ratio below 12%.
Balanced market
A balanced market occurs when supply and demand are about the same, with home prices rising in line with long-term average rate of inflation. Typically this is indicated by a sales-to-active listings ratio between 12% and 20%.
Summary
Over a sustained period of time:
  • a seller's market is represented by a ratio of 20% or higher
  • a buyer's market is represented by a ratio of 11% or lower
  • a balanced market rests between 12-19%
Not unlike 2016 West Vancouver condo prices rose as 2017 unfolded.
  • up +25%, House Price Index year average: $1,108,858 and $887,933 respectively;
  • up +29%, Median Sale Price year average: $1,92,583 and $864,754 respectively; and
  • up +16%, Average Sale Price year average: $1,360,134 and $1, 174,149 respectively.
$7.9 million was the highest price a West Vancouver condominium owner realized in 2017.  This was a 1991 built waterfront address with one suite per floor offering 2,954 sf.

Other 2017 sale prices included:
  • 1 in the $6 million range,
  • 2 in the $5 million range,
  • 3 in the $4 million range,
  • 4 in the $3 million range,
  • 79 in the $1 million range,
  • 32 in the $750,000 to $999,999 range,
  • 37 in the $500,000 to 749,999 range, 
  • 22 in the $250,000 to $499,999 range and
  • 0 less than $250,000.
Check out this graphic take West Vancouver apartment (condominium) 2017 market activity!

If you are unsure of how much equity you have in your condominium and curious about your ability to move, reach out to us to help evaluate your situation!
Our pleasure always,
june@johnjennings.com
604-828-7888

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