Single-detached homes in Vancouver are now less expensive than condos… based on a price-per-square-foot (PPSF) basis, at least.
In January, the average PPSF of a detached home in the city was $1,033 compared to $1,124 for condos, according to the Real Estate Board of Greater Vancouver’s (REBGV) latest data, published this month.
“Either detached homes are underpriced or condos are grossly overpriced,” Vancouver realtor Steve Saretsky tells BuzzBuzzNews.
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Saretsky says it’s rare for the PPSF of a condo to surpass a detached home’s PPSF, but with weak sales activity in the detached market, he expects that this trend will continue in the short-term.
“I think there’s clear indication that the detached [market’s] best days are sort of behind it,” says Saretsky.
Last month, the average sales price of a detached home in Vancouver was $2,797,295 compared to $2,242,375 in January 2017. Meantime, the average price of a condo soared to $1,090,317 in January compared to $774,227 a year ago.
On the sales side, Vancouver’s detached market saw a 3.4 per cent uptick in January compared to a year ago, however the sales total is 47 per cent below the 10-year average for the month.
Meantime, condo sales in the city increased by eight per cent year-over-year and are three per cent above the 10-year January sales average.
“All the factors are in place for the condo market to hold strong, there’s basically no inventory right now. The buyers that are out there pulling the trigger. They’re all basically competing with each other over the limited amount of inventory,” says Saretsky.
The realtor does caution that the current PPSF of a detached home only accounts for the square footage of the house itself. It does not include the value of the land, which Saretsky says is arguably where most of the value is.
In December 2017, the average PPSF of a detached home and a condo in the city were both valued at $1,019.