Kitsilano Real Estate Monthly Market Update for December 2018

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Happy Holidays LiveKitsilano.com! We hope you’re enjoying the holidays! As expected, the market has slowed down since the start of December. It happens every year while everyone enjoys the festivities before things pick up again in the New Year. Expect listings to be taken off the market now, possibly to be re-listed in the New Year, along with an increase in new inventory that we often see in the Spring.

This year has already been slower than the last few years. We saw fewer sales which allowed the amount of inventory to increase slightly giving buyers more options without the rush to buy in a competitive situation. As always, the condo, townhouse and house market in Kitsilano has responded differently to the change though I’m still seeing good properties sell fairly quickly as long as they’re priced right. The detached house market has seen the biggest change in price, to no one’s surprise given the higher cost. The townhouse market has dropped slightly but has been fairly steady since and condo prices seem to be fairly stagnant. The numbers only give you one side of the story as the market feels a bit different out there – I’ve definitely seen prices drop from their high last year. Properties are taking a couple weeks to sell and Buyers are keen to negotiate. I find it’s the Seller’s who are priced appropriately to the market who are selling quickly while Sellers who over price their property find their home sits on the market until they drop their price. I’ve seen Buyers pick up a few deals over the last few weeks, and I expect there to be some good opportunities over the next few weeks for buyers who are still looking (if a property is listed over the holidays, the Sellers are likely pretty keen).

Along with an increase in inventory in the Spring, I anticipate there to be an increase in prepared Buyers as well so competition between listings (especially good ones) will be something to look for in the Spring. I don’t expect prices to drop much more for condos and townhouses, but I do anticipate that Buyers will be able to be more picky – good properties in good buildings will retain their value but properties in bad buildings won’t be able to push the envelope on price (while the market was busy the last few years I saw a few too many units in bad buildings sell for prices that didn’t make sense).

With interest rates remaining stagnant right now (another increase is expected soon) I anticipate Buyers taking advantage while they have the chance since the stress test doubles the impact of an increase and really does affect buying power.

If you’re looking to sell your property, think about the difference between what you’re selling and buying rather than the fact that your property might not be worth as much as it was last year. Even if you’re selling for less now, what you’re buying next will also be cheaper than before.

As always, let us know if you have any questions. We are happy to help over the holidays, if anything to make sure that you are on the right path if you’re interested in buying or moving next year. Contact Pinsky Mortgages to get started on your financing approval since the simple “Mortgage Calculators” on the internet don’t tell you the full story.

All the best over the holidays and a very happy new year to everyone!

Kitsilano Condo Market Update

The Kitsilano condo market is still moving along, albeit slower than normal, but that will pick up again in the New Year. Prices have dropped ever so slightly but it primarily the units that aren’t as good (lack of renovations, bad building, etc) that have dropped the most (and even then, it’s not a huge drop). Buyers have had the chance to be more picky so they are embracing the opportunity. Overall, the sales to active ratio was high enough to indicate a Seller’s Market though I would call it a balanced market out there – good for both Buyers and Sellers. Inventory will drop this month but it will rise again in January, and should continue rising each month through the Spring.

Kitsilano Townhouse Market Update

The Kitsilano townhouse market has also seen a slight drop in prices recently, though this market is fairly small so it’s much more affected by unusual sales data. Inventory has also dropped this past month but I would expect it to go up again in the next year.

Kitsilano Detached House Market Update

The Kitsilano detached house market has been hit the hardest. There have been only 2 new construction sales in the neighbourhood so far this year, and we’ve also seen a drop in re-sale inventory and sales. The HPI price is at about $2.3-million which is down about $300k from its peak in 2017.