View From the Top: It’s All About Supply

  • August 2015 REBGV graph, Team Nickerson Forget about location, location, location—though let’s face it, if there ever was a premium location, it’s Vancouver—it’s all about supply, supply, supply. As the major theme coming out of this summer’s real estate activity, supply is 25% lower than 2014 whereas sales have increased by 25% – 30% in the same period. Therefore, an average of 19% price increase has resulted, coupled with record low interest rates to further boost the supply factor. Why are sales so high? We’re back to location, location, location: Vancouver is consistently being voted amongst the top 5 in the world. We have a strong economy, employment is high, and there’s a limited land area; making what’s there, even more desirable. The only course of action is to build upwards and densify. Condo sales and prices have climbed significantly since the beginning of 2015. Inventory is being increased to keep up and new condo projects are selling steadily. What does that mean for you? That it’s not only a good time to sell, but to buy as well. Based on current trends we believe prices will hold steady and only continue to increase for the remainder of 2015. Team Nickerrson is proud to have been part of several condo, duplex, and townhouse sales that went for over asking this year. It’s all about supply. We value all of our clients, and always appreciate your referrals! (Vancouver photo: Popejon2)