In the twelve-month period ending January 31, 2019, the median price of a luxury house in Greater Vancouver decreased 1.7 per cent year-over-year to $5,751,928, while the median price of a luxury condominium decreased 0.6 per cent to $2,680,064. Despite ongoing year-over-year low sales volume, luxury home prices were steady leading up to September 2018. In the last four months of 2018 and into 2019, sellers who were no longer able to wait out low demand began accepting reduced offers, which put downward pressure on home prices.
“We have a growing number of buyers sitting on the sidelines watching prices, but they are also concerned about the unpredictability of government regulation and whether right now is the best time to buy,” said Brock Smeaton, sales representative, Royal LePage Sussex.
Sales of luxury houses declined for a second year, decreasing 50.5 per cent year-over-year during the twelve-month period studied while luxury condominium sales decreased 32.2 per cent year-over-year.
“Luxury properties in Greater Vancouver are softening in price, but the lower-end luxury market is faring better than the upper-end,” added Smeaton. “For buyers considering the city’s most luxurious properties, it is a great time to buy in terms of price and selection.”
When looking to the next twelve months, the median price of a luxury home in Greater Vancouver is forecast to decrease 7.1 per cent year-over-year to $5,341,936, while the median price of a luxury condominium is forecast to decrease 3.7 per cent to $2,580,115. Sales are forecast to increase modestly as price reductions and excellent selection of inventory are expected to stimulate market activity.
For more information, contact Ben Gauer at 604-581-3838.