Condo prices in New Westminster saw a modest increase last month after about five years of flat lining.
Sales prices increased by just two per cent in New Westminster, but the move up shows a shifting market trend, according to Brendon Ogmundson, an economist with the British Columbia Real Estate Association.
“(Condos are) a more affordable option than single-family homes, pushing up prices after five years of flat condo prices,” said Ogmundson.
While new life is being breathed into the condo market, single-family house sales and price increases continue to outpace attached homes. Single-family home sales rose by five per cent last month compared to the same time a year ago.
“(The) condo market has been healthy, (but) not as the same pace as single family,” Ogmundson said. “We’re seeing that really all around the province and, especially in Vancouver, single-family homes are commanding quite a premium compared to other types of houses.”
A sellers’ market is percolating with a low number of listings and high buyer demand. The association predicts more of the same in 2015, which will put pressure on prices, Ogmundson said.
“Obviously as rates rise, there will be a little hit to affordability,” he said. “We don’t think home prices, though, are going to be adversely affected by it. I think rates are going to go up at a very slow pace over the next two years, and a lot of people have built up a lot of equity, so there is a lot of room for home purchases still.”
Townhouse prices in New Westminster were down by three per cent, though the townhouse market is so small in the city that any movement makes a significant difference.
There were 18 single-family home sales in October 2013 compared to 32 this year; in the townhouse market there were 16 sales last year versus six this October; and in the condo market there were 63 sales in 2013 and 68 this year. Average sale prices in the single-family home market rose in October from $713,833 in 2013 to $797,28 this year. In the condo market, the average price went from $298,975 to $315,342 year-over-year.
New Westminster is in line with Lower Mainland trends, where homes prices continue to rise in a market where many people struggle to afford home ownership.
