As I discuss the July numbers for Kitsilano real estate, it is important to keep in mind that with the lower sales volumes typical for the summer months it is not uncommon to see slightly skewed statistics. This you will see shortly with the Kitsilano detached home market. But first…
The Kitsilano condo and townhome market has seen a marked decline in the number of new listings since April and that trend continued through the end of July. Lower listing volumes during the Summer months is a common theme in Vancouver, so look for that trend to continue through August before a likely climb in inventory in September. Along with the decreasing number of new listings, we also saw a slowdown in sales this past month, with a total sales numbers the lowest we have seen since December 2009. Again, much of this can be attributed to a Summer slowdown (expect more of the same in August), but it will be interesting to see how the trend unfolds as we head into September, a time that is typically more active in the Vancouver real estate calendar.
As would be expected with slower activity, prices for Kits condos and townhomes also fell last month, with the average price dropping to its lowest level since March 2009. Combine the lower prices with mortgage rates that are back below 4% for a 5-year fixed term, and there are some intriguing deals to be had out there.
Switching over to detached homes in Kitsilano, the general trends are very similar to what we have seen with condos and townhomes. The average price point fell almost 50% last month, although the very limited number of July sales combined with several luxury sales from June that skewed those numbers upward, makes this statistic a little mis-leading. Comparing the average price point from July to that of May shows a much lesser degree of decline.
Active listings for Kitsilano homes reached its lowest point since December 2009 with sales volume declining to numbers we have not seen since Spring of last year. Again, when looking forward, the sagging prices and still almost record-low mortgage rates should be tempting for those who have been sitting on the sidelines waiting to pounce.
As is almost always the case in the slower summer months, trends can looked skewed and number can be deceiving. That said, there is no debating that prices have declined slightly and may continue downwards in the short-term. A falling inventory is limiting available options for would be purchasers, which means that desirable properties are selling quickly and as a buyer you will still need to move quickly if you see something that looks fabulous. The next few months appear to present some very strong buying conditions as a softer market and low interest rates are providing increased affordability. Look to take advantage of the situation before rates start to rise towards the end of the year…
Last modified: August 8, 2010