“…data says Vancouver home sale price averages dip below $1-million”
“For the first time in recent memory, the average sale price for a home in Vancouver has dipped below the $1-million price tag.
It’s more evidence the real estate market in Vancouver is coming to a screeching halt.
Zolo, a Canadian real estate brokerage which keeps track of MLS home sales in real time, reports that the average sale price for properties in the city have now fallen to around $993-thousand dollars.
That’s well off the neighbourhood of $1.4-million at this time last year, a 28 per cent free fall.”
I am not arguing with the data provided but I am arguing with the interpretation of the data. The Vancouver market is changing but it is not “coming to a screeching halt” and prices are not in a “free fall”. Typical attention-grabbing rhetoric by the media.
The reality is much less exiting, unless you own a luxury home. Yes Vancouver house prices peaked in the summer of 2016 but they are still up from 2015. What has changed is the amount of luxury home sales, homes priced at $5 million, $10 million or even higher. The rest of the market has not been impacted as much by the 15% foreign buyer tax.
Statistics quoting average sales prices combine all sales regardless of their type or location. Less sales at the high end pull down the average. If you look at a typical east Van house on a 30′ lot prices haven’t moved dramatically.
Prices shift independently by product type and location. As always it is important to work with an expert in the market, someone with the experience and knowledge of the community and the type of real estate you are considering.