Detached Homes Under $1M are Becoming Rare

Detached Houses for Under $1-million are Becoming Rare

In the first 6 months of 2015, 288 out of 2, 285 sales (12.6%) of detached houses were sold for under $1-million according to the Multiple Listing Service. In comparison, the first half of 2014 there were 543 out of 1,931 sales (28.1%) of detached houses for under $1-million.

Median Prices Compared to Last Year

The Real Estate Board of Greater Vancouver shows that the median price for detached homes in the east side has surged to $1.28-million last month—up 32.3% over July 2014. The median price for detached homes in the west side has jumped to $2.9-million—up 21.8% over last year. In Greater Vancouver, the median price for detached homes in the suburbs rose to $1.4-million—up 17.6% over last year.

HPI Benchmarks

Real estate board president Darcy McLeod attributes the sellers’ market to “strong consumer confidence, low interest rates and a reduced supply of homes for sale”. The board uses their Home Price Index (HPI) to represent the typical sale price for houses because it provides a better barometer than averages prices, which skew the picture because the most expensive properties are included. According the HPI, Vancouver’s east side reached $1.12-million—up 19.9% over last July, the west side hit $2.65-million—up 16.6%, and Great Vancouver’s detached homes reached a record high of $1.14-million last month—up 16.2% over last year.

Purchasers Must Consider a Range of Options

However, there are still lots of options in condos and townhouses or in the suburbs. In the east side there is still a range of condo and townhouse options under $1-million. There has been an increase in transaction for all types of properties. Greater Vancouver saw 3,978 sales last month—up 30% from last year. The Fraser Valley HPI rose to $621,100—up 9.3% over last year. Fraser Valley Board president Jorda Maisey states, “We have amongst the most affordable homes in the region”.