Vancouver condo market still going strong, despite slump forecast
With yesterday's announcement that the heads of some of Canada's biggest banks are warning that Toronto and Vancouver's condo markets might be heading for a slump it's a good time to take a look at Vancouver's still-hot market from a ground-level perspective.
We certainly know there is a slowdown in some condo markets -- Olympic Village is desperately trying to sell its first round of 200 units. But on the street, what I see is that each neighbourhood is its own market. In fact, each building can be its own market. It's becoming harder to lump all of Vancouver into one category and make a comment on "average".
In North Vancouver, for instance, with the new ship building contracts awarded there, well-priced and well-designed buildings are having no problem selling.
Take The Prescott for example, at 13th and Lonsdale. With good prices (a one-bedroom in the $300’s), amazing views and large balconies, the project had no problem pre-selling over 31 units in the first week, and these are not easy pre-sale times.
If I look at the last month or so from Dec. 1, 2011 to today 117 condos sold on MLS in downtown Vancouver (including Yaletown and West End) from $255,000 for a studio on Howe to $7.5 million for a three-bedroom on Marinaside, despite this being historically the slowest time of the year.
We may expect a softening but with interest rates so low people who are waiting for a price decrease might find no benefit in waiting if rates were to go up at all towards the end of the year.
Vancouver always seems to peak in the spring so we will see what that brings.
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