“Luxury” real estate sales surge in Vancouver
Sales of homes over $1 million soared in Vancouver in 2015, according to Sotheby’s data released January 7, with 4,578 units over this price point changing hands, representing an overall increase of 46% compared with 2014.
Sotheby’s defines residences over $1 million as “luxury” homes. In Vancouver, however, referring to dwellings over this amount as “luxury” residences may be a bit of a stretch, as the benchmark price in December for a standard detached home far exceeded this threshold at $1,248,600, according to data released earlier this week by the Real Estate Board of Greater Vancouver (REBGV).
Vancouver and Toronto led the country in terms of $1 million-plus sales growth, and this trend is expected to continue.
“The Greater Toronto Area and Vancouver are expected to continue to lead the $1 million-plus real estate market into early 2016, propelled by low interest rates, below-national average unemployment levels, sustained international investment and immigration and high levels of consumer confidence in the real estate market,” Sotheby’s said in a press release.
Unsurprisingly, the most activity in terms of the number of $1 million-plus units sold in Vancouver was seen in detached homes, which grew 42% year-over-year.
In terms of unit sales growth for residences over $1 million, however, townhomes take top spot, with a 95% jump in sales even though the benchmark price for this home type in December was well below the $1 million threshold as announced by the REBGV at $543,700.
“Luxury” condo sales also increased in 2015, with sales up 44% compared with 2014. The benchmark price for condos was $436,200 in December.
Metro Vancouver home sales hit record high in 2015
Total Metro Vancouver home sales reached the highest level in history in 2015, the REBGV said, with total unit sales reaching 42,326 units, up 27.8% compared with 33,116 units sold in 2014. The benchmark price for all home types increased 18.9% to $760,900.
“Home buyers were active and motivated throughout 2015 despite the pressure on supply of homes on the market,” said REBGV president Darcy McLeod. “We often hear economists say that seller’s market conditions put upward pressure on home prices.
“That was certainly the case in 2015, with price increases ranging from 14-24% depending on property type.”
