Vancouver real estate: townhouse market heats up as units sell almost a third over asking price

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      Analysts say that many home buyers are pivoting to properties that are less expensive than detached houses.

      That means more affordable townhouses and condos.

      In a previous report, Dexter Realty indicated that the month of February “marked the beginning of a major shift towards the townhouses and condominium sector”.

      To illustrate, the Vancouver-based property company noted that townhouse sales in the Greater Vancouver area in February were up 82 percent year-over-year.

      Meanwhile, condo sales went up year-over-year in that month by 65 percent.

      Together, Dexter Realty earlier reported, townhouse and condo sales accounted for nearly 65 percent of all February transactions in Metro Vancouver.

      Tracking by real-estate site of recent property sales in the city of Vancouver suggests that the market for townhouses is heating up.

      The sale of a Kitsilano-area townhouse on May 4 serves as one example.

      The 2972 West 6th Avenue property sold after seven days on the market for $1,701,000.

      The selling price was 26.1 percent or $352,000 over its original asking price of $1,349,000.

      Also, the $1,701,000 selling price is 51.4 percent more than the 2021 B.C. Assessment valuation of the three-bedroom, two-bath townhouse of $1,123,500.

      Heller Murch Realty marketed the two-storey property, and highlighted its garden as a major feature.

      “Garden lovers this is the place for you.Rare to find a townhouse with a fenced yard,” the listing started.

      Zealty tracking of property sales for the last 30 days shows that a detached home at 2855 Rosemont Drive had the highest sold-over-asking-price ratio of 30.3 percent.

      Coming second is a townhouse at 2379 Cypress Street in the neighbourhood of Kitsilano.

      The three-story property sold on April 12 after six days on the market for $1.3 million.

      The sold price was 30.3 percent above its listing price of $998,000, and 28.4 percent over its 2021 assessed value of $1,012,700.

      Another example is 831 West 7th Avenue in Fairview, which sold for $1 million.

      A buyer took the two-bedroom, two-bath townhouse on April 28, which was nine days after the property came on the market.

      The $1 million sold price weas 25.2 percent over the home’s asking price of $799,000, and 38.1 percent above its 2021 assessed value of $724,100.

      City hall has acknowledged that there isn’t enough supply of townhouses in Vancouver.

      Townhouses are considered by the city as the “missing middle” between expensive detached homes and condos, which some describe as boxes in the sky.