A new report from Sotheby’s International Realty Canada shows that Vancouver’s single family home market above $1 million is seeing a significant pullback in activity, while sales of luxury condominiums are up.
The report cites the B.C. provincial government’s 30-point housing affordability plan for a 36 per cent drop year-over-year in single family home sales over $1 million in Vancouver. At the same time, sales of single family homes over $4 million fell a staggering 55 per cent year-over-year.
Sotheby’s says the combination of provincial government policies, tighter mortgage lending rules and rising interest rates are eroding the purchasing power of buyers in Vancouver—and pushing them to the luxury condominium market, where sales are up.
Even compared to 2017’s record highs, sales of Vancouver condominiums over $1 million are up nine per cent year-over-year in the first half of 2018, while sales of luxury condominiums over $4 million in Vancouver are up 35 per cent for the same time period.
Sotheby’s says prices are beginning to adjust in the “top-tier” single family home market, with price reductions and re-listings below original asking price becoming commonplace.
Declining single family home sales were not unique to Vancouver; the Sotheby’s report noted that rising mortgage rates and tighter mortgage rules weighed heavily on sales of $1 million-plus homes in Vancouver, Calgary and Toronto. Montreal was the only major Canadian city to see gains in sales over $1 million — with a 24 per cent increase in the first half of 2018.
Average sold price of condos in Vancouver neighbourhoods
(Jan 1, 2018-June 30, 2018)
- Coal Harbour: $2,324,083
- Kerrisdale: $1,309,151
- Point Grey/UBC: $1,084,126
- Shaughnessy: $524,000
- Yaletown: $1,197,938