Blog by Ann Hickey

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September 2016 - Market News

The Benchmark Prices Are Still Strong

After a searing hot spring and summer with record setting sales, the fall season has brought a long overdue cooling phase that was expected. Yes, sales had slowed in August, but that is typical for this time of year. Historically, August has always been a sluggish month and this year was no exception. The introduction of the foreign buyers tax in combination with a slowdown had many fear that we were in for a real estate free fall, which is absolutely not true.

Homes are still selling. Buyers are still looking. Having eight to ten multiple offers on a detached home a few months ago was common while now listings are seeing two to three offers on a property.  Prices have increased in comparison to last year at this time with the benchmark price rising 42% for North Vancouver, 40% in West Vancouver and 34% for Vancouver West.  
Source: Real Estate Board of Greater Vancouver

Knowing and understanding what numbers to look at is important. A multi-million dollar home that sells for $300,000 less than asking can skew the average home sales price dramatically for that neighborhood.   Benchmark prices are much more accurate and a key to getting a clear understanding of exactly what homes are selling for and are worth in a particular area.

Please read below to better understand the differences:
Average home price is the average of all house prices within a category, e.g., the total of all condo sale prices in North Vancouver divided by the number of condos sold there.
Median home price is taking the midpoint of sales prices where an equal number of properties were sold above and below this sales price.
Benchmark home price  estimates  the value of a “typical” home in a community based on the most popular combination of features, e.g., age, size, number of bedrooms and bathrooms. You’ll find separate benchmark prices for detached, attached and condo homes.
House Price Index (HPI): Ongoing record tracking aggregate sales of similar homes.
The market is strong as well as highly competitive so if you are thinking of buying or selling your home give me a call, I’d love to help.
Ann Hickey
604 220-6249