The Ruth & David Group Podcast 003 | January Market Update
Vancouver Real Estate Market Update
Jeff Benna, Realtor at RE/MAX Real Estate Services joins David for The Ruth & David Group Podcast #3! What’s happening in the market? Can we predict where the market’s heading?
An important concept used in real estate to predict home prices and sales activity is the absorption rate. This is the number of months it would take to sell the currently listed homes in the market.
Vancouver West Detached = 27 months’ supply
Vancouver West Attached = 8 months’ supply
Vancouver West Condos = 4 months’ supply
East Vancouver Detached = 13 months’ supply
East Vancouver Attached = 6.7 months’ supply
East Vancouver Condos = 3.5 months’ supply
What about Pricing?
Less than 4.5 months supply = upwards pressure on prices
4.5 to 9 months supply = balanced market
More than 9 months supply = downwards pressure on prices
What we see for detached homes in both the west side and east side, is a downwards pressure on prices. For attached homes, it is roughly balanced. Apartments show an upward pressure on prices with reasonably strong demand.
Last year, in January and February, we saw little inventory and a huge demand, resulting in a huge run up in prices. With all the uncertainty with taxation and rules implemented by the government, we saw homeowners step back; not wanting to list, nor wanting to buy, causing a market slowdown.
Conversely, people who want to buy and get into the market are still going strong.
What are your thoughts on the market? Thinking of buying or selling? When you’re ready, we’re ready.