The sub-million dollar detached home is back in Vancouver
How many more sub-million dollar single family detached homes appear on the market over the next year is truly anyone's guess
After several years of continually rising prices for single-family detached homes in Vancouver, the sub-million dollar house has re-appeared — and it even has a white picket fence and grassy back yard.
The listing, at 1578 East 22nd Avenue, is priced at $998,000 — which is a hefty discount on the $1,264,800 value placed on the property on July 1, 2018 by the B.C. Assessment Authority. It was assessed at $1,319,600 on July 1, 2017.
The home is in the Kensington Cedar-Cottage neighbourhood on Vancouver’s east side, north of Kingsway and east of Knight. It has a 33-by-100 foot lot with no back lane and was built in 1922, when 840 square feet was deemed sufficient to raise a family in three rooms. It has an 821 square foot unfinished basement.
How many more sub-million dollar single family detached homes appear on the market over the next year is truly anyone’s guess.
There is, however, writing on the wall, with the Real Estate Board of Greater Vancouver last month revealing the sales of detached homes for Dec. 2018 was 43.6 per cent fewer than the same month in 2017. And the benchmark price for that class of home dropped 7.8 per cent in 2018. Not to mention the B.C. Assessment Authority’s latest report showing widespread drops in assessed values for detached homes across Metro Vancouver, particularly in Vancouver and West Vancouver.
And then there were these recent words of discomfort from Sebastien Lavoie, chief economist at Laurentian Bank Securities in Montreal. “I’m not worried about Toronto, I’m worried more about Vancouver at this stage. The biggest worry I have for Vancouver really is the expectations that could turn a lot more downbeat because of the downward trend we are seeing now.”
Vancouver realtor and blogger Steve Saretsky joined the naysayer fray in his Dec. 2018 real estate report that states Vancouver’s “detached housing market continues to turn heads” — and not in a good way.
He states “buyers are hesitant to pull the trigger, and sellers are somewhat reluctant to adjust their asking prices, although the very few homes that are selling are taking a substantial discount.
“The prevailing sentiment in the detached housing market is frustration amongst sellers. After several price reductions many sellers are taking their property off the market with the plan to relist in the spring when housing activity seasonally ramps up.”
So as Berenstain Bears’ Great Natural Bear says — “Let’s see the things spring brings.”