Luxury housing on rebound, realtor says

Vancouver's luxury home market is recovering with demand and price increases for properties over $5 million, according to a real estate report on Wednesday.

The Royal LePage report says the median price of a luxury house increased 3.9 per cent in Vancouver to $4.01 million, and 8.6 per cent to $4.18 million in the greater region since the onset of the novel coronavirus pandemic in the middle of March.

Over the same period, the median price of a luxury condo rose 11.2 per cent to $2,065,000 in the city, and 10 per cent to $2,035,000 in Metro Vancouver.

Royal LePage defines luxury property as having a value above three times the median price of a house or condo in its region.

The real estate agent says the growth in price in Metro reflects buyers taking advantage of the lower price per square foot, allowing them to buy a larger home.

“Vancouver's real estate market has been recovering slowly upward from the entry-level segment and is now emerging in the luxury segment. While activity has been brisk for properties priced below $4 million, it has only been the past few months that we have seen clear signs of improving demand and price appreciation for properties above $5 million,” said Jason Soprovich, a sales representative for Royal LePage Sussex.

Soprovich said price gains are seen as recovered equity after a sustained correction of price softening and low sales.

“Consumer confidence is back, but buyers remain price sensitive. The best strategy for a successful sale is accurate pricing from the start,” said Soprovich.