The value of West Vancouver real estate has dropped by $5 million in recent years. Prices of detached homes and condos are down 7% and 4%, respectively, over the previous month. However, these declines do not reflect a general trend in the market. This is a case-by-case analysis of the local market and isn’t necessarily indicative of a crash. While many factors play into the value of real estate, the following factors contribute to the decline.
West Vancouver real estate values have fallen by $5 million in recent years
The housing market in West Vancouver has undergone a dramatic fall in recent years, with prices for single-family houses dropping by 17 per cent in March alone, the steepest drop of the entire region. While home prices in the “high end” segment have decreased by a staggering 30 per cent, the lower end has seen a drop of just 15 to 22 per cent. The reason for the steep drop? Some real estate experts blame speculative activity and taxes on foreign buyers. Others cite the stricter federal lending rules.
The decline in luxury homes in West Vancouver has been particularly hard. During the peak of the real estate bubble, West Vancouver homes had topped $5 million. Between June 2015 and June 2016, Vancouver’s westside home prices were up nearly 37 per cent. Yet, those prices are now lower than the median income in the city. The real estate market in West Vancouver is booming again, thanks to a slew of new Chinese buyers.
The decline in real estate values in West Vancouver is linked to increased taxation of foreign buyers and speculation. The foreign buyer tax in B.C. affects vacant properties and homes worth more than $3 million. Vancouver has an additional tax on empty homes. Most buyers will live in their home as their primary residence. However, many potential sales involve an elderly owner moving into a smaller home. These taxes could make the real estate market in West Vancouver more expensive than it already is.
A new Postmedia News interactive chart shows that the price of detached houses in Metro Vancouver has decreased by about 25 per cent since the peak in 2016. Meanwhile, a three-bedroom unit in Yaletown sold for $1.9 million in February. However, a waterfront mansion at 1033 Marinaside Cres. has gone on sale for $2.3 million. This is a far cry from the previous year when a similar-sized three-bedroom unit was for sale for $2.3 million.
Meanwhile, the detached luxury housing market in West Vancouver has suffered as a result of Chinese investors leaving properties empty for much of the year. This is because of the influx of Chinese money into the city, which has historically been a top destination for wealthy mainland buyers. Meanwhile, despite the unwelcome side effects of Chinese money, Vancouver’s housing market is among the least affordable in North America.
Prices of detached homes are down 7% from previous month
The market for detached homes in West Vancouver is experiencing a buyer’s market, with fewer listings and a reduced supply of properties. A balanced market is characterized by a ratio between 12 and 20 percent. When this ratio is over 20 percent, sellers have the advantage over buyers, while when it is below 12 percent, there are more listings than there are sales. A seller’s market is an area where prices tend to increase, while a buyer’s market is characterized by price drops.
In West Vancouver, prices of detached homes are down 7% from last month, indicating a softening market for this area. Prices of detached homes in the area fell by nearly $400,000 in December compared to the same month last year. While detached homes are still expensive in West Vancouver, their prices are much more affordable in East Vancouver. Despite the recent decline in sales, detached home prices are still far below their highs in April 2016.
A recent report by the real estate consultancy Engel & Volkers shows that the housing market has changed to a buyer’s market. Before the tax, prices had already fallen 39.7% year-over-year, but the change in tax policies has made the market less appealing to buyers. It’s also a sign that the government has implemented a tax on foreign buyers. However, the impact of this tax is still unclear.
Although the housing market continues to stabilize, there is still uncertainty in the market. Some buyers will have to re-qualify for their existing mortgage and will have to go through the stress test. Other buyers may not be able to get approved. For these buyers, it is important to keep an eye on prices as the market will recover. The prices are down 7% from last month, as the market is still recovering from a tough winter.
Home sales are down 4% from previous month
The real estate market in West Vancouver is slowing down. Sales of single-family homes in West Vancouver fell by about 14 percent in May, and the median price of detached homes on the West Side was $3,544,000, down from $3,768,000 in April. This slowdown, coupled with limited supply, puts upward pressure on home prices. The shortage of listings makes it harder for buyers to find what they want, which means higher prices.
The CREA has blamed the recent drop in sales on financial pressures. The Bank of Canada has been raising its key interest rate and the increase of one percentage point to 2.5% is putting pressure on the real estate market. The previous interest rate increase has already altered the market in West Vancouver, said CREA chair Jill Oudil. But the overall picture remains positive. Although sales are down, the market is still active.
The prices of detached homes in West Vancouver have dropped slightly. The benchmark price of a West Vancouver detached home was C$1.47 million in September and C$856,000 in August. While the numbers are not completely reliable, it’s good news for homebuyers and sellers alike. Although the market is still slow, there are signs that the market is beginning to pick up. Although the price drops in the west Vancouver area aren’t as drastic as in the city, the overall trend is positive.
Still, despite the slump in sales, the trend is encouraging for first-time homebuyers. The prices of detached homes are now higher than the median prices of semi-detached houses in Calgary and Edmonton. Despite the slowdown, Vancouver townhouse prices have soared by 16% year-over-year and have only fallen slightly by month-over-month. If homebuyers can hold out, the market is likely to level out and reach more balanced levels by the end of the year.
In the meantime, the Vancouver property market is slowing down despite the new tax. The government has also passed a bill to tax foreign buyers who buy homes in the city. The government has imposed a 15% tax on non-Canadians purchasing homes. It’s unclear whether other cities will follow suit and impose similar legislation. Regardless, the new tax will hurt the housing market in the city, and if it does, it’s likely to have a negative impact on homebuyers from other countries.
Prices of condos are down 5% from previous month
While the housing market is supposed to be rebounding, prices are down in the Greater Vancouver region as well. The Real Estate Board of Greater Vancouver recently reported that prices of condos in West Vancouver were down 5% in July. This is a significant drop, especially since the market has been weak compared to the rest of Canada. Despite the recent slowdown, prices are still up over three years, despite the slight decline in West Vancouver.
The benchmark price of condos in West Vancouver is now $1,371,300, which is down 4.5% from the previous month. However, the most active Westside sector was condo apartments. Their sales-to-listing ratio was 64%, and the benchmark price is now $871,500, which is 11.1% higher than the year-ago period. The market is still expected to be strong through the rest of the year, as the median price of condos is predicted to be $1,075 million by 2022.
As for detached homes, they are not only cheaper than their Metro Vancouver counterparts, but also more affordable. In West Vancouver, the median price of a detached house is $1,150,500, down almost 40% from last month. While prices in West Vancouver have fallen, detached homes in New Westminster are up 8%. Despite the recent dip, detached home prices in New Westminster are still among the highest in Canada.
Detached homes in West Vancouver fell in May, compared to last month. Although prices are down 5% from the previous month, they were up nearly 30 percent from January. Single-family homes averaged $3,273,200 in May. In West Vancouver, there were 18 sales of condo apartments. The benchmark condo in West Vancouver sold for $1,181,200 in February. There are still 380 active listings in the city. That’s down from last month and the same time last year. But new listings are up 55% from January 2022.
Despite the recent drop, the real estate market is expected to rebound in the next few months. There will be more foreign students and immigration to lower BC, and the resumption of international trade will help fill up condo vacancies. Foreign investors and foreign buyers will also help to boost the local economy. As the economy recovers, the real estate market is expected to see higher prices in West Vancouver, North Vancouver, and Port Moody.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.