Kitsilano Real Estate Update for July 2018
Hello LiveKitsilano.com readers and happy summer! This is your season to shine, so I hope you’re enjoying days at the beach now that it seems like the sun is here to stay.
This summer has been busier than most, and I would attribute that to the slow Spring we had, the increase in listings we’re seeing and the desire to buy before the inevitable interest rate increases that will lessen affordability. It’s generally a smart idea of Buyers to stay tuned into the market during the summer months – there may be slightly fewer listings than normal, but that perfect place can hit the market anytime, and you just might have less competition to buy it. Plus, units with great outdoor spaces are usually listed at this time of year, so if you want that huge patio (I have one and I can attest to the fact that it’s amazing) then keep your eyes on the market.
On another note, many of you may have heard about the new rules the Real Estate Council of BC instituted this past June 15th. These new rules make a big difference in how we Realtors can interact with the public, especially when it comes to our own listings. Long story short, listing agents can’t double end their own listings i.e. represent the Buyer and the Seller). This means that listing agents have to avoid getting into a conversation about your needs/wants/financials/history to avoid starting an implied relationship with you, so you might find that listing agents at their Open Houses don’t offer their opinions, and don’t ask you many questions. You’ll also find that the agent running an Open House isn’t representing the Seller, since they can speak more freely than the listing agent and would be able to help you purchase the property if you liked it and didn’t already have a realtor. If you happen to love a listing that your agent listed, you’ll have to find a new Realtor to represent you in the purchase (else, your Realtor will have to stop representing the Seller). There are quite a few other changes to be aware of, and my blog post gives you a quick run down of these new rules: New Rules for Real Estate Agents Tale Effect!
The sales to active ratio is really strong in Kitsilano (it’s higher than East Van right now) so this market still has some energy. The Sales to Active Ratio is 21% for Detached Houses, 18% for Townhouses and 42% for Condos. All markets are slower than most of the last year and half, but they are still a Seller’s Market (if anything, Townhouses may be considered a Balanced Market). The HPI Price is $2,420,400 for detached houses (it’s been increasing after a dip in March and April), $1,104,100 for townhouses and $657,800 for condos (both fairly steady compared to the last few months).
The biggest takeaway for Sellers is to be patient – properties aren’t always selling the first week, but prices aren’t dropping much either. Understand what the market value is of your home, and how the asking price you choose can affect your sale timeline and Buyer mentality. Buyers have a bit more time to be picky, so plan to put a bit more effort into presentation and small handyman jobs around the house. Finally, consider the difference between the the price of your current and new home – don’t worry too much if your current property doesn’t sell for the high number you’re expecting because you can make it up by getting a good deal on your new home.
The biggest takeaway for Buyers is to be patient. Understand the market value for a property so you know what listings are over priced and might have some negotiation room, knowing that it might take the Seller a few weeks to realize that they are overpriced. The market hasn’t dropped , so don’t expect a fire sale on listings, but feel free to negotiate a bit more on dates, price and subject removal periods, though multiple offers are still happening, so be prepared if it’s a great property.
Interest rates are expected to increase again in July, so it might get a little tougher to afford a good property in a few months time. Talk to a mortgage broker sooner rather than later so you know what you can afford now, and how a rise in interest rates will affect you later. Mortgage Rules are constantly changing, and are way more intricate than you can imagine, so talk to a professional will let you know what your options are, if you should pay off other debts first, or wait until you get that promotion you’re expecting. The Pinsky Mortgage Team are the best around. They’ll present you with options and will make sure you understand the short and long term ramifications of your mortgage.
As always, if you want to chat about your real estate goals, don’t hesitate to contact me: 778-387-7371 or [email protected]. With a bit more competition when it comes to selling your property, putting int those extra touches to ensure the unit shows well will be really important, as well as good marketing and top notch negotiation.
The condo market in Kitsilano had a 42% sales to active ratio last month, which is quite strong. We saw a 45% sales to active ratio for both 1 and 2 bedroom condos, and a 14% sales to active ratio for 3 bedroom condos.
The average and median sales price for each bracket are:
Studios + 1 Bedrooms: $635,730 ($1,032/sqft) and $646,900 ($1,038/sqft)
2 Bedrooms: $945,167 ($1,009/sqft) and $839,000 ($969/sqft)
3 Bedrooms: $799,000 *** There was only 1 sale this past month, and it was in a leasehold building off W Broadway, so the stats are skewed thanks to a more affordable price point.
As for inventory, the numbers are generally pretty consistent compared to May, though there are some minor ups and downs There was a drop in “new listings” last month, which is indicative of existing inventory sitting on the market. Sales also dropped compared to May, though that is typical for this time of year.
Summer is usually a great time to look for real estate. You may not have a ton of choices, but other Buyers always tend to step back to enjoy their summer (and the plethora of activities during evenings and weekends) so you’ll also have less competition. It’s a good time to get to learn different buildings and how construction and maintenance makes a difference.
The townhouse market in Kitsilano didn’t have a lot of sales last month (there are normally 12 sales or less in a month, and this one only had 5 sales), so there aren’t too many stats to discuss, but let’s go through what happened. All 5 sales last month were 2 bedroom townhouses. The sales to active ratio was 30% for 2 bedroom condos, and would have been 0% for 1 and 3 bedroom condos (having said that, there is only one 1-bedroom condo for sale and nine 3-bedroom condos).
Because there were no sales of 1 and 3 bedroom townhouses, there is no average or median price to report. However, the average price for a 2 bedroom townhouse was $987,511 ($906/sqft) and the median price was $960,000 ($879/sqft). Prices have dropped compared to the beginning of the year, though with so few sales the data can be easily skewed.
Overall, the HPI price of Kitsilano townhouses is at $1,104,1000, which is down slightly compared to last month but still higher than the last 6 months or so.
Our team has a great 2 bedroom townhouse for sale right now – #109 2455 York There is a large ground floor patio and easy access from the street, perfect for people with dogs and strollers. The floor plan is an easy renovation – no walls or mechanical components to move, you just need to replace the finishings with modern versions. It seems like a lot of people are passing this opportunity by because of the daunting task of renovating, but you can plan to take possession in the Fall after you enjoy your summer 🙂
The detached market in Kits has some pretty good opportunities right now, and it shows – the sales to active ratio is at 19% indicating that some Buyers are jumping on good opportunities. This time of year can be pretty active with families look for a property to buy and move into before the school year starts. It’ll slow down in August before picking up again before Christmas.
The HPI Price for detached homes in Kitsilano was $2,420,400, which is an increase over April and May, and close to this year’s high. It’s still far off the high we saw last year of $2,625,600 (in September) so this market has certainly shifted off it’s peak.
The amount of inventory has been dropping slightly since April, but is pretty comparable to what’s expected at this time of year. The number of new listings increased slightly this past month, which gives Buyers some new options. The days on market is still generally a few weeks, so Sellers, be patient.
For Re-Sale Homes, the average price was $2,794,436 and the median price was $2,670,000.
If you have any questions on the market, or if you want to sit down with an agent to chat about everything you need to know, give me a shout: 778-387-7371 or [email protected].
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