Kitsilano Condo

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Increasing property inventories taking pressure off Kitsilano home prices

As sales ease off and we experience an increase in new property listings we are seeing pressure diminish on Vancouver home prices.   Sales remain higher than they were a year ago when the market began rebounding, but are less frenzied than they were at the close of 2009.

Part of this can be attributed to the fact that a majority of the buyers that decided to take advantage of the improved affordability and low interest rates following the recession have now purchased their homes. New mortgage regulations and increasing interest rates are also making it more difficult for some home buyers to enter the housing market.

This will lead to less demand in the real estate market and with the occurring, expected, increase in seasonal inventory; take Vancouver from what has been a predominantly seller’s market into a more balanced market.

In more balanced market conditions there is less upwards pressure on home prices for several reasons. Fewer buyers’ mean that homes on average will spend more days on the market before being sold, they will sell at a price closer to what current market value dictates, and will sell less frequently in competing offer scenarios reducing inflated sales prices which new listings use to price their homes.  

It is expected that benchmark prices in Vancouver West will see incremental increases and decreases depending on the area and property type as the market stabilizes. Hot spots such as Kitsilano, Fairview, False creek, and downtown tend to be less susceptible to these price fluctuations unless experienced over a prolonged period of time.