The dust has settled. The 15% foreign buyers’ tax has been in place for 6 months, and historically I’ve observed that the impact of a market changer can be assessed after that amount of time. So, here is a look at current activity and prices in Vancouver and surrounding communities, considering the 15% tax and tighter lending guidelines introduced by the government in the summer.
Over the past month, I’ve observed a marked increase in condo sales. Attractive and fairly priced condos are once again selling within a matter of a few days and, in many situations, with multiple offers. This is not surprising since the condo market was strong throughout 2016, even during the summer when the pace of detached home sales slowed down substantially.
While the sale of detached homes has slowed from a frenzied pace to an average pace, prices are down marginally from the peak of July 2016 but up double digits compared to this time last year.
Here’s a snapshot of prices today compared to this time last year:
Additionally, based on the Sales-to-Active Listing Ratio, the condo and townhome markets have remained a seller’s or balanced market, while the detached home market has dipped just within the margin of a buyer’s market.
Naturally these numbers vary depending on community and neighborhood as the Greater Vancouver area has become a collection of micro-markets.
If you would like an assessment of your property in today’s market or have questions about a particular neighborhood, please call me. I look forward to speaking with you.
Thank you for your continued referrals to family and friends who are considering buyer or selling their home. I appreciate your business.