condo-cutaway

What’s a better deal, new or resale?

Although the MLS® condo market got off to a slow start in January, there’s still hope that sales will pick up over the next three to four months. For those potential buyers looking for an apartment or townhouse condo over the next few months, the following tables present a comparison of average MLS selling prices for newer condos (less than 5 years old) over the past three months and asking prices for new condo projects that started marketing in 2012. Keep in mind that the average asking prices for new apartment and townhouse condos exclude HST.

The data for new project prices and sizes are taken from the latest edition of the Condo Market Opportunities (CMOP) Report. The CMOP Report is the most complete and up to date analysis of the new condo market in Metro Vancouver. Its 500+ pages cover all new projects marketing and upcoming. It provides an in-depth analysis of present and anticipated market conditions for over 20 market areas as well as practical advice on pricing, product mix and features. For an evaluation copy contact Jeff Hancock:jhancock@mpcintelligence.ca.

 

Strategics MLS Condo Market Update, January 2013, highrise market price comparison

 

The new high-rise market proved to be much more resilient than the MLS high-rise market in 2012. Unlike MLS high-rise sales, which are going through a meltdown, new high-rise sales in 2012 were actually up from 2011. A look at the average prices for newer high-rise condos sold on MLS against average asking prices in high-rise projects that started marketing in 2012 gives some clues as to why the difference.

In almost all markets, the average asking price for new high-rise condos is less than the average MLS selling price of newer units. Granted that buyers of new condos are getting a smaller unit, and once HST is added in, the price difference will decrease or even disappear. But buyers in a new project get the latest in features and maybe some developer goodies and giveaways.

 

Low-rise condo price comparison chart  MLS vs new, Vancouver & Lower Mainland

New low-rise projects that started marketing in 2012 didn’t enjoy the sales success of new high-rise projects. Total low-rise sales for 2012 were down by about 400 units from the previous year. There are several reasons for poorer sales in new low-rise projects, but the main one is that new low-rise projects were more likely to target potential owner-occupants instead of investors. Also, it’s apparent from a comparison of average MLS prices for newer low-rise condos over the past three months that there’s not the price gap that is evident in the high-rise market.

In several of the major low-rise markets such as the City of Vancouver, Burnaby, Coquitlam, North Surrey and Langley, average prices in new low-rise projects were considerably higher than for newer units sold on MLS. An exception would be buyers looking at the Richmond market. They could get a much better deal in a new project.

 

MLS vs new townhouse prices comparison by Frank Schliewinsky, Startegics

 

Sales in new townhome projects in 2012 were also down from the previous year. The drop was not as steep as experienced in the MLS townhouse markets. Average asking prices in new townhome projects that started marketing in 2012 were generally considerably higher than average MLS prices for newer townhomes sold over the past three months.

Average asking prices in new townhome projects the North Surrey, South Surrey and Langley markets were lower than average MLS prices but that didn’t seem to help sales. New townhome sales in these markets were on a downward trajectory at the end of 2012.

 

In-depth regional analysis by housing type here.

Condo/Townhouse Price Calculator here.

 

Originally Posted From:

http://www.rew.ca/news/resale-vs-new-condo-price-comparison

 

This Greater Vancouver Condominium Market Overview is compiled by Strategics, a Vancouver-based company providing information and analysis since 1981, helping to minimize marketing risk for apartment condominium developers, lenders, project marketers and investors.

Read full post

Home buyer demand remains below historical averages in the Greater Vancouver housing market. This has led some home sellers to remove their homes from the market in recent months.


The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,351 on the Multiple Listing Service® (MLS®) in January 2013. This represents a 14.3 per cent decrease compared to the 1,577 sales recorded in January 2012, and an 18.3 per cent increase compared to the 1,142 sales in December 2012.


Last month’s sales were the second lowest January total in the region since 2001 and 18.7 per cent below the 10-year sales average for the month.


“Home sale activity has been below historical averages in Greater Vancouver for about seven months. This has caused a gradual decline in home prices of about 6 per cent since reaching a peak last spring,” Klein said.


Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.9 per cent to $588,100. This represents a 2.8 per cent decline compared to this time last year.


“It appears many home sellers are opting to remove their homes from the market rather than settle for a price they don’t want,” Eugen Klein, REBGV president said.


New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,128 in January. This represents a 10.9 per cent decline compared to the 5,756 new listings reported in January 2012. Last month’s new listing count was 18.9 per cent higher than the region’s 10-year new listing average for the month.


The total number of properties currently listed for sale on the Greater Vancouver MLS® is 13,246, a 5.6 per cent increase compared to January 2012 and a 4.5 per cent decline compared to December 2012. This is the fourth consecutive month that overall home listings have declined in the region.


“When a home seller isn’t receiving the kind of offers they want, there comes a point when they decide to either lower the price or remove the home from the market. Right now, it seems many home sellers are opting for the latter,” Klein said.


With the sales-to-active-listings ratio at 10.2 per cent, the region remains in buyers’ market territory. Since June, this ratio has ranged between 8 and 11 per cent.


Sales of detached properties in January 2013 reached 542, a decrease of 17.8 per cent from the 659 detached sales recorded in January 2012, and a 31.7 per cent decrease from the 793 units sold in January 2011. The benchmark price for detached properties decreased 3.1 per cent from January 2012 to $901,000.


Since reaching a peak in May 2012, the benchmark price of a detached property has declined 6.9 per cent.

Sales of apartment properties reached 576 in January 2013, a decline of 12.3 per cent compared to the 657 sales in January 2012, and a decrease of 19.2 per cent compared to the 713 sales in January 2011. The benchmark price of an apartment property decreased 2.9 per cent from January 2012 to $358,400. Since reaching a peak in May 2012, the benchmark price of an apartment property has declined 5.6 per cent.


Attached property sales in January 2013 totalled 233, a decline of 10.7 per cent compared to the 261 sales in January 2012, and a 25.6 per cent decrease from the 313 attached properties sold in January 2011. The benchmark price of an attached unit decreased 1.7 per cent between January 2012 and 2013 to $449,900. Since reaching a peak in April 2012, the benchmark price of an attached property has declined 7.7 per cent.

Download the complete stats package by clicking here. 



copyright© real estate board of greater vancouver. all rights reserved.

Follow us on Facebook and Twitter.

Read full post
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.