Friday, January 29, 2010
Bounce back from 2009 in the Vancouver Real Estate market will taper off in 2010
The huge bounce back in the
Vancouver real estate market in 2009 which was fueled mostly by the record low interest rates will slow in 2010 and 2011 according to the B.C. Real Estate Association.
Association chief economist Cameron Muir is forecasting provincewide sales in 2010 to increase only three per cent above a hot 2009's results to 90,100 sales in 2010, then slip back three per cent to 87,500 units in 2011.
The provincial average price, Muir is forecasting, will advance five per cent to $490,900 in 2010 then eke out just one-per-cent growth to $494,800 in 2011.
One of the largest factors that will slow the Vancouver Real Estate market is the affordability factor. As mortgage prices edge higher, coupled with the record prices, will keep further price increases under control.
And while B.C.'s economy is creeping towards a recovery with some job and income growth, Muir said the growth is not coming quickly enough to offset the rising unaffordability of housing.
"We're unlikely to see record sales levels this year and next as a result of that," Muir said.
However, Muir does expect B.C. home sales in 2010 and 2011 to remain slightly above the 10 year annual average, which is "what we would expect given the economy is just coming out of recession."
In his forecast, Muir estimates that the markets that roared back the most in 2009 -
Metro Vancouver, the Fraser Valley and Victoria - will be among those with the most muted results in 2010 and 2011.
After rocketing back 44 per cent in 2009, Muir is projecting Metro
Vancouver sales to advance just three per cent to 37,500 units in 2010, then slip back five per cent to 35,500 in 2011.
Muir is forecasting that the Metro Vancouver average price will jump seven per cent in 2010 to $636,000, then edge up just one per cent to $643,000 in 2011.
Labels: real estate vancouver market update, vancouver real estate forecast, Vancouver Real estate market update
Friday, September 04, 2009
Vancouver Real Estate Market momentum carries into August
The number of home sales in Greater Vancouver increased significantly last month compared to August 2008 and moved closer in line with the active summer months experienced between 2003 and 2007.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver increased 119.5 per cent in August 2009 to 3,441 from the 1,568 sales recorded in August 2008 and increased 1.7 per cent compared to August 2007.
New listings for detached, attached and apartment properties increased 4.9 per cent to 4,544 in August 2009 compared to August 2008 when 4,331 new units were listed. Total active listings in Greater Vancouver currently sit at 11,937, down 33 per cent from August 2008.
"The return of confidence to our market has brought a high volume of home sales over the last few months and has also made determining home prices a little more challenging," said Scott Russell, REBGV president. "The number of residential home sales this summer has been comparable to activity seen in the five years preceding 2008. While that’s great news, from the variations in activity we’re seeing across areas I’d say the market is still trying to find its own balance."
Since the beginning of the year, the MLSLink Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 11.4 per cent to $539,600 from $484,211. However, home prices compared to August 2008 levels are down 1.1 per cent.
Sales of detached properties in August 2009 increased 155.5 per cent to 1,367 from the 535 units sold during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index, for detached properties declined 0.7 per cent from August 2008 to $732,656.
Sales of apartment properties increased 97.8 per cent last month to 1,464, compared to the 740 sales in August 2008. The benchmark price of an apartment property declined 1.4 per cent from August 2008 to $369,263.
Attached property sales in August 2009 increased 108.2 per cent to 610, compared with the 293 sales during the same month in 2008. The benchmark price of an attached unit declined 0.9 per cent between August 2008 and 2009 to $459,159.
For more information on the Vancouver Real Estate Market contact:
Peter Raab
Vancouver Real Estate Expert
Labels: real estate vancouver market update, vancouver real estate market conditions, Vancouver Real estate market update
Wednesday, July 08, 2009
Market conditions drive strong June Vancouver Real Estate sales
VANCOUVER, B.C. July 3, 2009 The combination of low interest rates and more affordable pricing helped propel Greater Vancouver home sale numbers to the second all-time highest total for the month of June.
The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties increased 75.6 per cent in June 2009 to 4,259, from the 2,425 sales recorded in June 2008. The figure is just short of the record-breaking 4,333 sales which occurred in June 2005.
New listings for detached, attached and apartment properties declined 17.9 per cent to 5,372 in June 2009 compared to June 2008, when 6,546 new units were listed. However, new listings increased 13.5 per cent from May to June of this year. Total active listings in Greater Vancouver currently sit at 13,252, down 27 per cent from June 2008 and 2.9 per cent below the active listings count at the end of May 2009.
"Price reductions and low interest rates have created an improvement in affordability, which is causing the number of sales to rise to levels comparable to 2003 to 2007," Scott Russell, REBGV president said.
"Many people who were reluctant to purchase a home last fall and earlier this year are returning to the market because they see conditions that appeal to their personal and financial needs," Russell said. "However, the current marketplace is such that buyers are more inclined to walk if they don't like the terms of an offer."
Residential benchmark prices, as calculated by the MLSLink Housing Price Index, declined 8.2 per cent to $518,855 in June 2009 compared to June 2008.
The number of sales of detached properties increased 81.6 per cent to 1,667 from the 918 detached sales recorded during the same period in 2008. The benchmark price for detached properties declined 8.4 per cent to $701,384 in June 2009 compared to June 2008.
The number of sales of apartment properties in June 2009 increased 69.3 per cent to 1,790, compared to 1,057 sales in June 2008. The benchmark price of an apartment property declined 8.2 per cent from June 2008 to $356,880.
The number of attached property sales in June 2009 increased 78.2 per cent to 802, compared with the 450 sales in June 2008. The benchmark price of an attached unit declined 7.3 per cent between June 2009 and 2008 to $441,620.
Bright spots in Greater Vancouver in June 2009 compared to June 2008:
Detached:
Burnaby up 109.7 per cent (151 units sold from 72)
Coquitlam up 122.2 per cent (160 units sold from 72)
Delta - South up 107.7 per cent (56 units sold from 27)
Maple Ridge/Pitt Meadows up 54.3 per cent (162 units sold from 105)
New Westminster up 104.8 per cent (43 units sold from 21)
North Vancouver up 96.2 per cent (153 units sold from 78)
Port Moody/ Belcarra up 120 per cent (33 units sold from 15)
Richmond up 77.4 per cent (204 units sold from 115)
Squamish up 107.7 per cent (27 units sold from 13)
Sunshine Coast up 33.9 per cent (75 units sold from 56)
Vancouver East up 71.2 per cent (238 units sold from 139)
Vancouver West up 85.2 per cent (200 units sold from 108)
West Vancouver/Howe Sound up 117.8 per cent (98 units sold from 45)
Attached:
Burnaby up 81.8 per cent (140 units sold from 77)
Coquitlam up 80 per cent (54 units sold from 30)
Maple Ridge/Pitt Meadows up 48.6 per cent (55 units sold from 37)
North Vancouver up 121.2 per cent (73 units sold from 33)
Port Coquitlam up 82.6 per cent (42 units sold from 23)
Port Moody/ Belcarra up 77.3 per cent (39 units sold from 22)
Richmond up 84.5 per cent (155 units sold from 84)
Vancouver East up 118.5 per cent (59 units sold from 27)
Vancouver West up 121.8 per cent (122 units sold from 55)
Apartments:
Burnaby up 60.4 per cent (239 units sold from 149)
Coquitlam up 93.9 per cent (95 units sold from 49)
New Westminster up 57.1 per cent (121 units sold from 77)
North Vancouver up 71.4 per cent (120 units sold from 70)
Port Coquitlam up 58.1 per cent (49 units sold from 31)
Port Moody/Belcarra up 128.6 per cent (48 units sold from 21)
Richmond up 54.1 per cent (225 units sold from 146)
Vancouver East up 58.7 per cent (165 units sold from 104)
Vancouver West up 87.2 per cent (627 units sold from 335)
West Vancouver/Howe Sound up 155.6 per cent (23 units sold from 9)
Labels: real estate vancouver market update, Vancouver Real Estate, Vancouver Real estate market update
Tuesday, May 19, 2009
Vancouver real estate prices will drop less than expected
A recent surge in real estate sales has caused the Canadian Real Estate Association to sharply revise its expectations for price drops in British Columbia.
CREA, in its forecast released on Thursday, estimated that B.C.'s average house price will drop less than seven per cent over 2009, more than 3 percentage points less than the 10.6 per cent drop forecast in February.
CREA's forecast that B.C.'s average price will drop to $423,300, instead of the $406,300 average it forecast earlier.
Going forward to 2010, CREA is now predicting that B.C. prices will start edging up again by almost two per cent compared with a 2010 drop of 0.6 per cent forecasted in February.
B.C. sales rose in April from the previous month, the B.C. Real Estate Association said Thursday in a news release, as buyers were drawn back into the market by lower prices and rock-bottom mortgage rates. And the inventory of unsold homes across the province dropped to the lowest level in 12 months, the association said, edging the ratio of sales to active listings close to the zone housing economists consider balanced between buyers and sellers.
"An increase in consumer demand combined with fewer homes for sale has trended the market near balanced conditions," Cameron Muir, chief economist for the B.C. Real Estate Association said in an interview.
April was the third straight month that sales were higher than the previous month.
Peter Raab
Vancouver Real Estate Agent
Labels: real estate vancouver market update, Vancouver market update, Vancouver Real Estate, vancouver real estate agent, Vancouver Real estate market update
Tuesday, April 21, 2009
Home ownership is now more affordable for Canadians
The Royal Bank of Canada said the cost of owning a home went down in the last three months of 2008, after rising since 2004.
Mortgage rates are consuming less income of Canadian households thanks to the low interest rates and decrease in housing prices. This trend is expected to continue in the near future, a new survey from RBC suggests.
The study showed that Vancouver still remained the least affordable city, where is took 70.3 per cent of pre-tax faminly income to own a home, compared to 51.3 per cent in Toronto, 42.7 per cent in Calgary, 42.7 per cent in Ottawa and 39.4 per cent in Montreal.
RBC economist Robert Hogue said in the first quarter of 2009, house prices have fallen further, as have mortgage rates, which is very good news for homeowners and new buyers looking to purchase their first home.
Hogue believes that going forward, low interest rates will continue to keep the housing market strong.
Click here for more of this article
Peter Raab
Vancouver Real Estate Agent
Kitsilano, downtown Vancouver, Fairview Slopes, False Creek North, Coal Harbour and the Westend.
Labels: real estate vancouver market update, Vancouver market update, Vancouver Real Estate, Vancouver Real estate market update
Monday, April 06, 2009
Vancouver Real Estate Market picks up but Vancouver condo developers feeling the pinch
Although the number of
Vancouver real estate sales may have bounced back this spring, they are still not to the level they were in 2008 and neither are the prices. What is clearly up is the number of condominium developers going into receivership.
The pattern has been that the developer runs out of money, the lender goes to court and has a receiver appointed and the receiver finishes the building and get teh best price it can for the units. Other developers seek credit protection, asking the court for time to get their financial houses in order before the lender comes knocking.
Most of the developers got into trouble when credit markets seized up in 2008, says Parry Prentice, senior vice-president at Ernst & Young Inc., which is acting as receiver for the Resort at Copper Point in Invermere.
The Sophia condominium project on east 11th Avenue in Vancouver was pushed into Bankruptcy when cost overruns of $4 million meant the pre-sale prices asked when the units were marketed in 2005 and 2006 wouldn't cover the costs.
When the Bowra Group stepped in, purchasers were given two options, either pay more for their units or get their deposits back. Half chose to stay and the other half chose to go, Bowra said.
Earlier this week, the remaining units went on sale for 25% less than the original asking price meaning you could buy a brand new condo for under $300,000 including GST.
For more information see the article in the Vancouver Sun
Peter Raab
Vancouver Real Estate Agent
Specializing in buying and selling real estate in downtown Vancouver, Kitsilano and Vancouver's Westside.
Labels: Bowra Group, new condo developments in Vancouver, real estate vancouver market update, vancouver condos, Vancouver Real Estate
Thursday, April 02, 2009
Vancouver Real Estate sales jump 53 per cent in March
Vancouver Market Update:
Real estate sales have bounced back in March compared to February, up 53 per cent in Metro Vancouver, 48 per cent in the Fraser Valley and 34 per cent on Vancouver Island.
Moreover, in some areas prices showed signs of recovery as well.
The numbers are still down significantly from last March but are still encouraging, said Paul Penner, president of the Fraser Valley Real Estate Board, where prices have eked up slightly.
Vancouver area sales jumped the most among the boards reporting numbers Thursday, yet volumes were also down about 24 per cent from last March. And benchmark prices were down month over month for detached homes and townhomes, though not for condominiums.
In March the benchmark price for a detached home in Greater Vancouver - which extends from Squamish to South Delta and Pitt Meadows - was $649,342, down from $653,452 in February, and 15 per cent lower than it was in March 2008.
Townhouses were $420,563 in March, compared to $426,268 a month earlier, and 11 per cent cheaper than in 2008.
Condominium prices went from $333,134 in February to $337,099 in March, which was 13.5 per cent lower than a year earlier.
From the Vancouver Sun
Peter Raab
Vancouver Real Estate Agent
Labels: real estate vancouver, real estate vancouver market update, Vancouver Real Estate, Vancouver Real estate market update
Wednesday, March 04, 2009
February sales improve, as property listings decrease
Residential housing sales in Greater Vancouver rose 94 per cent in February compared to the month before, with 1,480 sales registered in February compared to 762 sales in January, which was the slowest month for housing sales in 25 years. Over the past 10 years, February sales have typically surpassed January by an average increase of 53 per cent.
At the same time, new MLS listings for residential properties continued to decrease for the fourth month in a row. New listings decreased 25.6 per cent in February compared to the previous year; 20 per cent in January; 8.6 per cent in December; and 10 per cent in November.
"There are terrific opportunities out there right now, but with property listings continuing to decrease, those opportunities may be available only for a brief window of time," said Dave Watt, president of the Real Estate Board of Greater Vancouver (REBGV).
REBGV reports that year-over-year property sales in Greater Vancouver declined 44.7 per cent in February 2009 from the 2,676 sales recorded in February 2008. Year over year, those are the lowest sales figures for February since the mid-1980s.
"Real Estate Agents are reporting more activity compared to recent months as people begin to see whether their position in the housing market has strengthened as a result of falling interest rates and improved affordability," Watt says. It took, on average, 67 days to sell a home in Greater Vancouver in February, seven days less than last month, but behind the seller's market of last February when the average stood at 33 days.
Sales of detached properties in February 2009 declined 41 per cent to 587 from the 995 units sold during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index, for detached properties declined 14.2 per cent from February 2008 to $653,452.
Sales of apartment properties declined 45.6 per cent last month to 650, compared to the 1,197 sales in February 2008. The benchmark price of an apartment property declined 13.9 per cent from February 2008 to $333,143.
Attached property sales in February 2009 decreased 49.8 per cent to 243, compared with the 484 sales during the same month in 2008. The benchmark price of an attached unit declined 9.7 per cent between Februarys 2008 and 2009 to $426,268.
New listings for detached, attached and apartment properties declined 25.6 per cent to 3,916 in February 2009 compared to February 2008, when 5,260 new units were listed.
This is from the Real Estate Board of Greater Vancouver.
Peter Raab
Vancouver Real Estate Agent
Labels: real estate vancouver market update, vancouver housing market update, Vancouver Real Estate, Vancouver Real estate market update
The huge bounce back in the Vancouver real estate market in 2009 which was fueled mostly by the record low interest rates will slow in 2010 and 2011 according to the B.C. Real Estate Association. 
