Market Update

may 2012

The April Real Estate market was really interesting. It was a market dominated by rising inventory levels. Sales activity and average pricing was much less predictable, and showed great variation from market to market. Typically, we would relate this rising inventory and inconsistent sales activity with a market shifting towards the favour of buyers. This year we have one primary factor that at play, and that is mortgage rates. Based on conversations with several of our contacts higher up in the banking world, mortgage pre-approval applications are flooding in with prospective buyers drawn to the low rates. As the banks typically see buyer trends 30-60 days before they become real world buyers, I would not be at all surprised to see a wave of buyers jumping into the market before Summer. It makes sense... Low rates and a rising inventory makes for a great buying opportunity if you choose your spot.

In this month's stats, we have included a comparison to show year over year change in addition to the month over month numbers we typically show. We think it adds an additional perspective that is quite valuable. Let us know what you think…

Ben

Market Update

April 2012

As expected, March showed further growth in activity as we near the peak of the Spring market. Active listings are up across all markets, though not as significantly as some may have expected. Sales activity was also up in most markets, with the exception of the Westside, which saw a slight drop in activity in both the attached and detached markets. Downtown showed the largest jump in activity with sales up 43.8% over last month. Median pricing remained relatively flat, though a drop off of almost 8% was noted in the Westside detached market.

The hottest market segments last month were:

- Any detached home on the Eastside under $1.2m
- The sub-$1.5m Westside detached market
- Virtually all detached North Van detached homes between $700k and $1.6m
- Entry level downtown condos under $400k
- Higher end North Van condos/townhomes between $800-900k

The next two months should have plenty of Buyer activity, with many looking to use the 2.99% rates that are locked in for the next 90 days. Looking forward to a good Spring (and good spring weather for showings and tours)!

Ben

Market Update

March 2012

Now that we have officially survived the dullest and greyest month of the year, it is time to look forward to Spring. While we still have a little ways to go until we get some of that fabulous sunshine, the Vancouver real estate market has started Spring early!

February was a very active month, with sales up dramatically over January in all markets. This is, of course, an expected trend, but the degree of activity increase is certainly worth noting. Another expected trend was an increase in active listings. While all areas experienced this increase, the degree of change is well below the growth in sales. Price changes vary greatly with neighbourhood and product type. The biggest changes in average pricing were the Downtown attached market (+13.8%), Vancouver East attached (+8.0%) and North Vancouver detached (+6.0%).

The highest absorption rates (ie. fastest moving product) in each market place was:

- North Van homes between $700,001 - $900,000
- Eastside homes between $600,001 - $700,000
- Westside homes between $1m -1.5m
- Westside condos between $300,001 - $400,000
- Eastside townhouses between $600,001 - $700,000
- Downtown condos between $300,001 - $400,000
- North Van condos between $400,001 - $500,000

So what does all that mean? Well, almost all of those categories would be classified as 'entry level' for each marketplace. To me, this suggests a pulling back of the foreign money that has been driving the market and a strong push from local buyers. This will be a very interesting trend to follow in the coming months.

What's next? Look for further, albeit smaller, increases in sales heading in to March, along with future growth in active inventory.

Ben

Market Update

February 2012

The first month of 2012 is officially in the books. Hopefully your new year's resolutions are still in tact and the year is off to a great start!

The Vancouver real estate market has picked up significantly after a sleepy holiday season. Listing inventories are up 18-38% with the curious exception of Vancouver East detached homes, which sat flat. Sales are up 20-70% depending on the neighbourhood, which makes sense given the low sales numbers through December. Median pricing is all over the place compared to December, though some trends should develop next month.

The sub-categories that were in highest demand last month, determined by current absorption rates, were:

• Entry-level condos (less than $300k) in Vancouver Westside
• Mid-level condos & townhomes ($500-600k) in Vancouver East
• Higher end condos ($700-800k) in North Vancouver
• Entry-level condos ($300-400k) Downtown.
• The entire sub-$1.2m detached market in North Vancouver
• Entry-level detached houses ($700-900k) in Vancouver East
• Mid-level detached houses ($1.4-2.0m) in Vancouver West

Look for further increases in listing inventory and more active sales next month. With low interest rates essentially guaranteed until 2014 and a healthy stable of eager buyers, it looks like we will have another busy Spring market this year. And, like 2011, it looks like the Spring market may start a little early this year.

Ben

Market Update

August 2011