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Real Estate 101 Home >> Demand for Condominiums Continues to Outstrip Supply Jun/17

  • Demand for Condominiums Continues to Outstrip Supply Jun/17

    Author: Anoop Majithia Date: July 3, 2017

     

    Excerpts from the Real Estate Board’s report released today:

    The benchmark price of an apartment property is $600,700. This represents a 17.6% increase from June 2016 and a 2.9% increase compared to May 2017.

    The imbalance between supply and demand in the condominium market is creating home buyer competition across Metro Vancouver.

    Two distinct markets have emerged this summer. The detached home market has seen demand ease back to more typical levels while competition for condominiums is creating multiple offer scenarios and putting upward pressure on prices for that property type.

    For all property types, the sales-to-active listings ratio for June 2017 is 45.7%. By property type, the ratio is 24.5%for detached homes, 62%for townhomes, and 93.2% for condominiums. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12% mark for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.

    Demand Condominiums

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Author : Anoop Majithia
Anoop Majithia is the Principal and Director of Plan A Real Estate Services Ltd. Anoop became a Chartered Accountant upon his graduation from the University of Toronto and subsequently completed his law degree at the University of Saskatchewan in 2001. Since that time, he has been a successful entrepreneur and avid investor in the downtown Vancouver condo real estate market. Anoop is a qualified Managing Broker with the BC Real Estate Association. Plan A Real Estate Services Ltd. is the culmination of his wealth of educational and personal experience, and his passion for real estate.