As of today the average price for a home listed in the past 30 days in Vancouver is $626,995. But an interesting note is that the average sold price in the same time period is much lower at $539,736. The market activity is in the lower half of the price range. Price reductions are up over this last 30 day period as is the listed price per square foot.
It is not at all unusual for higher end listings to require more marketing time than lesser priced homes. This can be a big part of why the discrepancy is so wide between average list price and average sold price.
We have been slowly picking up inventory over the last year or so. This past 30 days saw 315 new listings and 284 sold properties. That is actual a very healthy ratio considering it does not include new pending sales. Sales are up over the previous 30 days.
As we enter the final month of winter we will see an uptick in new listings, but barring any economic slowing we should see new buyers to the market as spring generally picks up steam for real estate. Interest rates have stabilized hovering around 7% with dips into the 6's and as is typical, credit profile can create a spread of a 1/2 point or more. Solid credit can get you under 7% bumpy credit will be in the mid to upper 7s.
The 50 year running average for mortgage rates has been around 6.5% so currently market conditions are just a little high. For all the media bluster about rates being high, they really are close to average right now. We just came out of a ten year period with the lowest rates in the history of the 30 year mortgage that dates to the mid 1930s. We maneuver see sub 3% mortgage again and that is a big part of why people in homes with mortgage rates under 4% are so hesitant to move.
Anyone that is confident they will remain in the local market for at least 5 years ought to strongly consider owning rather than renting. Rents are very high right now and I do not see any significant relief over the next few years as demand continues to outpace supply. Even if you have to buy something that is not as nice as what you can rent, building up equity over time is worth it.
I see young people on social media complaining about how unaffordable houses are today. I assure you they were equally unaffordable in the 1980s when I was in my 20s and mortgage rates were 15% or higher. My wife and I started out in a tiny little one bedroom condo and worked our way up to a 4 bedroom house. This is still a viable path for young people today.
Some on social media are angry that their parents have a 2000 square foot home with a mortgage of only $1500 and they can't even rent a dumpy apartment for that money. That is why they bought a home when they were young. The mortgage payment stays the same even as home prices rise. When they bought the house back in the day it was just as expensive relatively as it is now. You have to get into the market in order to get something out of it. Like most worthwhile endeavors it is hard to get in and many will have to make lifestyle sacrifices to do so. In the end it is worth it.
No comments:
Post a Comment