There is an article in the March 2015 edition of BC Business that shows how hot (or not) each market is. Can you guess which area is number one right now in terms of hotness? (I feel like I'm writing a blog post on a completely different topic right now and not one involving real estate!)
In the article they list 20 different areas and show their "hotness" scale from Scorching (East Van) to Lukewarm (Whistler and the Sunshine Coast). This is based on sales price for typical homes and how much they have changed from January 2005.
After Vancouver East (east of Main street), the "Very Hot" markets are Vancouver West (west of Main street), West Vancouver and Richmond.
I didn't need an article to tell me that East Vancouver is hot. I see it every day. Detached and semi-detached homes are a hot commodity over here. Of course there aren't bidding wars on every single one of them, but if it's a good home in a desirable neighbourhood...chances are that more than one family wants it. In fact, it's not uncommon for several families to want it, and we are seeing places sell for over asking...at times, well over asking.
For example, when I look at a recent sale in the Commercial Drive area, a 4 bedroom house on a standard lot was listed at $1,288,000 and sold in 7 days for $1,436,000. In 2008 this same house sold for $920,000. In 2001? A mere $274,950.
A 3 bedroom 1/2 duplex in the same area was recently listed for $759,000 and sold within 6 days for $911,850. In 2010, this sold for $659,000. In 2004? $349,000.
I saw this same trend happen in Kitsilano and knew a few people who "were waiting for the prices to go down" before they bought. They thought a million dollars was a crazy price to pay for a house. Those same people are still renting! Those million dollar houses are now two million and in the last 5 years, houses in Kits have gone up 25.8%.
In East Vancouver, houses have gone up 17.5% overall. In Grandview, that increase is 22.6%.
Still waiting to buy? With interest rates at an all time low and East Van showing no signs of slowing down, you may wish to reconsider. Don't let yourself get priced out of the market.