As the first half of the 2015 buying and selling season comes to end we see similarities to the first half of 2014 in terms of the number of transactions (365 vs 354). However, total dollar volume is up significantly (26%).
We have now had 6 straight quarters of very strong activity, as a result market momentum (which starts in the lower price segments) has moved into our higher price ranges. This has two impacts being to raise the average transaction value (Up 8.5% since the start of the year) as well to start to impact the velocity of transaction as we reduce the number of opportunities and are dealing with a smaller number of qualified purchasers.
Finding realistic expectations as a buyer is critical at this time. Buyers increasingly need to either modify their expectations in terms of value if they wish to acquire a property, or be patient and wait to see if another property in their range comes along. In the last month alone, for the first time in months we have seen the number of new listings exceed the number of sales on a week-to-week basis. Moving forward, this will be monitored to see if it is a just a real estate fad, or a trend.
The absence of choice is starting to show up by impacting average sales price and prices are rising across the board.
Sales per entity:
Chalet average transaction value now exceeds 1.8 million and we just experienced the highest level of activity in 6 months since 2007.
Condo market was very consistent when compared to last years market (115 vs 116) and average transaction value largely unchanged.
Townhouse activity is down by about 10% (due to reduced supply), but average transaction value is up by 12% to 782,000.
Single Family lots are showing strong activity likely as a result of their being fewer affordable “renovation projects” available.
Pemberton Market continues to be undersupplied relative to demand, however activity is on par with last year.
Published: August 4, 2015