It wasn’t all that long ago that the prospect of buying a detached home in the City of Vancouver for under $1 million seemed like a dream from another era. The so-called “million dollar line” that used to divide Vancouver’s east and west side has now crept well into the suburbs, and back in January there was just one such property in the city listed and sold for under the $1 million bar.
That appears to be changing, as B.C.’s real estate market enters what some analysts believe is a sustained downward trend. As of Oct. 26, there were at least six detached homes in Vancouver with a sub-$1 million sticker price.
“I think we’re in the midst of a correction right now,” said Vancouver realtor Steve Saretsky.
“When one or two start to sell like that it sets a new benchmark, it’s what buyers start to expect or anticipate.” Saretsky said rising interest rates and new housing taxes have helped to bump inventory in the City of Vancouver to levels that haven’t been seen since 2012. Those numbers are reflected in data from the Real Estate Board of Greater Vancouver, which reported listings across the region were up 38 per cent year over year, and 10 per cent since August.
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As for what buyers can afford, Saretsky said now is a good time for them to flex their muscles at the negotiating table, as rising inventory puts sellers in competition with one another.
“Every listing agent is trying to coach their clients that you have to be prepared to negotiate and the buyers are ultimately in the upper hand right now,” he said.
“It is a buyer’s market.”