October was another strong month for Vancouver real estate. The month’s sales were 22.4% above the 10-year October average. Along with decreasing inventory, the pricing pressure has been increasing. This is reflected in the higher sales-to-active listings ratio across all categories. A ratio above 20% for an extended period of time is expected to result in price increases. For detached properties the sales-to-active listings ratio for October is 33.6%. For townhomes it is 64.4% and 46.7% for apartments. Price increased across all categories. For the month of October, the benchmark price for a detached home went up 1.2%. The same for townhomes and 1.1% for apartments.
As the price increases continue, it is getting harder and harder for first-time home buyers to enter the market. However, Langford BC is trying to help residents out by offering a grant to first-time home buyers for their down payment. They are offering a grant of up to 75% of the 5% down payment needed for a condominium valued at a maximum of $450,000. The grant will also be adjusted based on a household income which has to be $125,000 or less. This could amount to a maximum of $17,500. The program starts in 2022 and you can find out more information here: https://www.langford.ca/residents/welcomehome/
Before you make plans to move to Langford, this program is only open to people who have been living there for 2 years or more.
New Zealand is also trying something new to address their housing crisis. They are moving to ban single-family zoning in 5 of their major cities. Residences will be allowed to build 3 homes up to 3 storeys on their single-family lot. Some applaud the move while some caution against unintended consequences. Regardless, it is definitely worth keeping track off and kudos for being innovative.
Vancouver City Hall is trying to do their part by passing changes to allow for a quicker approval process for building 4 to 6 storey rental housing on existing large streets AND one street in from the large streets. I hear red tape at City Hall can mean taking a year to get zoning approval. So by having this streamlined, this will reduce the cost of building such housing. Now whether they will be affordable will be another issue.
Cheers, have a great month and don’t forget November 11th is Remembrance Day!
