What is the current real estate market condition?
For the past couple months we have witnessed more buyers and fewer home listings. After months of price adjustments, the housing market has finally entered a more balanced state.
During April, the house price index has been increasing steadily.
What does this mean?
In short, House Price Index (HPI) is a number that can be used to predict house price. You may treat this like a Consumer Price Index (CPI) but for housing market only. Therefore, when HPI increases, most of the properties in the market would have a price increase as well.
The following is a simple chart that shows detached, attached, and apartment's HPI during the last five years:
Source from RealtorLink
From the chart you can see that between March and April, the housing market for detached properties (property like Townhouse & Duplex) has an increasing trend for HPI.
To put these numbers in a meaningful interpretation, let's do an example for the estimated price difference between March 2009 and April 2009.
If an apartment in Vancouver West was sold for $450,000 in March 2009, the same apartment would have an estimated market value of roughly $467,614. Therefore, you are looking at an estimated value increase of $17,614. You should know that this HPI calculation is based on the whole Vancouver West region and is used to give you a general understanding of the market condition. For a more detailed market analysis of an area to your interest, please contact me.
Do note that HPI do vary differently from location to location. Homes priced around $400,000 ~ $500,000 represents our majority of home sales volume. Therefore, places such as Vancouver West where there are more properties listed around that price will have a HPI value that is most similar to the chart above. Whereas North Vancouver is still at the stage where HPI is decreasing from March to April.
Please call Andrew at 604.782.1964 or e-mail me at email@example.com for any real estate question you may have.