A new report further affirms Metro Vancouver’s luxury housing market’s recent transition into a buyers’ market.
According to Royal LePage, the median price of a luxury house in the region fell by 1.7% year-over-year to $5.752 million over a 12-month period ending on January 31, 2019. The median price of luxury condominiums also dropped by 0.6% to $2.68 million over the same period.
Luxury home prices were steady leading up to September 2018, despite ongoing year-over-year low sales volumes. But beginning in September and into 2019, sellers who were no longer able to wait out the low demand began accepting reduced offers, effectively putting downward pressure on home prices.
“Luxury properties in Greater Vancouver are softening in price, but the lower-end luxury market is faring better than the upper end,” said Brock Smeaton with Royal LePage Sussex. “For buyers considering the city’s most luxurious properties, it is a great time to buy in terms of price and selection.”
Luxury residential property sales in the region declined for the second consecutive year — falling 50.5% for luxury homes and 32.3% for luxury condominiums.
Over the coming 12-month period, the median price of a luxury home and condominium in Metro Vancouver is forecast to see further drops of 7.1% year-over-year to $5.342 million and 3.7% to $2.58 million, respectively.
Sales volumes should see modest increases due to price reductions and an “excellent selection” of inventory.