As affordability challenges pushed many potential homebuyers away from the detached home market, sales of condominiums in the $1 million-and-up range surged in the first two months of 2018, according to Sotheby’s International Realty Canada data released March 21.
There were 232 condos sold for more than $1 million in January and February, which is a 51% year-over-year gain compared with the same period last year. The majority of those homes – 198 condos, or 85% of the total – were sold for between $1-2 million, which is a 61% jump compared with January and February 2017.
In contrast, sales of detached houses at prices of $1 million and higher fell 39% from last year, reaching 193 units. The biggest drop was in the sale of houses between $1-2 million, which declined 47% to 85 units.
According to Sotheby’s, the gap in the performance between the $1 million-and-higher condo and housing sectors is only expected to widen this spring.
“Uncertainty introduced by the British Columbia government’s new demand-side policies are expected to diminish activity in the detached home segment, while spring condominium activity is expected to maintain the momentum experienced in the first two months of 2018,” the company said in its report.
According to Sotheby’s Canada president and CEO Brad Henderson, rising prices and a lack of affordable options is pushing many consumers away from buying or selling, slowing overall activity.
“In Vancouver, the new housing measures introduced in February cast confusion and uncertainty into the consumer mindset,” Henderson said.
“While demographic trends and housing needs will support the top-tier condominium market, disruption in the overall real estate market is inevitable.”
Vancouver Sales of $1M+ Condos Soar in First Two Months of the Year by Emma Crawford Hampel | Business in Vancouver