The Royal LePage report says Vancouver’s real estate market has been recovering slowly, but the luxury market is on the rebound after a slump over the last few years.

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

The Royal LePage report says the median price of a luxury house rose 3.9 per cent in Vancouver to $4,010,000, and 8.6 per cent to $4,180,000 in the greater region since the onset of the COVID-19 pandemic in mid-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.

Soprovich added that if interest rates remain low and economic conditions remain stable, he expects pent-up demand for luxury properties to continue through the rest of the year.

“Buyers took advantage of price-softening of luxury homes priced below $4 million but those opportunities are becoming more rare,” said Soprovich. “The gap between the asking price and selling price is quickly narrowing for homes priced over $5 million, but there are still many buying opportunities.”

Meanwhile, Metro remains a top destination for offshore buyers of luxury properties, with marketers saying COVID-19 is stimulating their demand for “safe” havens. Luxury housing values in the region were down for the two years before COVID-19. And indications are that prosperous buyers are now looking for possible pandemic discounts.

— With files from Douglas Todd

Author : Tiffany Crawford from Vancouver Sun