New listings for detached, attached and apartment properties totalled.....CLICK TO READ MORE

Home Sales Activity Strong through Olympic Period

c/o REBGV : Greater Vancouver home sales remained strong last month, with the second highest number of residential sales ever recorded for the month of September.

 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 3,559 in September 2009, an increase of 3.4 per cent from the 3,441 sales recorded in August 2009, and an increase of 124.5 per cent compared to September 2008 when 1,585 sales were recorded.

 

“As homes sales in Greater Vancouver continued at an elevated pace in September it’s encouraging to see that more homes were listed on the MLS® in the month than any other so far this year,” Scott Russell, REBGV president said.

 

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,764 in September 2009. This represents a 6.2 per cent decline compared to September 2008 when 6,142 new units were listed, but a 26.8 per cent increase compared to August 2009 when 4,544 properties were listed on the Multiple Listing Service® (MLS®) in Greater Vancouver.

 

At 12,596, the total number of property listings on the MLS® increased 5.5 per cent in September compared to last month and declined 36 per cent from the 19,852 homes listed for sale during the buyer’s market that was experienced at this time last year.

 

“During this period of renewed demand in our marketplace, home values have gradually recovered from the declines that occurred in 2008,” said Russell.

 

Since the beginning of the year, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver has increased 13 per cent to $547,092 from $484,211, while home prices compared to Septembers 2008 levels are up 1.6 per cent.

 

Sales of detached properties increased 160.6 per cent to 1,423 from the 546 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties increased 2.1 per cent from September 2008 to $741,632.

 

Sales of apartment properties in September 2009 increased 94.9 per cent to 1,489, compared to 764 sales in September 2008. The benchmark price of an apartment property increased 1.5 per cent from September 2008 to $374,686.

 

Attached property sales in September 2009 are up 135.3 per cent to 647, compared with the 275 sales in September 2008. The benchmark price of an attached unit increased 0.4 per cent between Septembers 2008 and 2009 to $466,276.

Attached property sales in July 2009 are up 107.9 per cent to792, compared with the 381 sales in July 2008. The benchmark price of an attached unit decreased 4.6 per cent between July 2008 and 2009 to $452,085. Since the beginning of the year, the benchmark price for attached properties in Greater Vancouver has increased 6.8 per cent.

Bright spots in Greater Vancouver in July 2009 compared to July 2008:

DETACHED:   

Burnaby up 121.7 per cent (153 units sold from 69)  

North Vancouver up 53.3 per cent (115 units sold from 75)  

Maple Ridge/Pitt Meadows up 60 per cent (160 units sold from 100)  

Richmond up 140.2 per cent (221 units sold from 92)  

Vancouver East up 66.4 per cent (208 units sold from 125)  

Port Coquitlam up 236.4 per cent (74 units sold from 22)  

Vancouver West up 104.5 per cent (180 units sold from 88)  

South Delta up 203.1 per cent (97 units sold from 32)  

West Vancouver up 108.1 per cent (77 units sold from 37)  

ATTACHED:   

Burnaby up 123.3 per cent (134 units sold from 60)  

Maple Ridge/Pitt Meadows up 77.7 per cent (64 units sold from 36)  

North Vancouver up 70 per cent (51 units sold from 30)  

Vancouver West up 110 per cent (105 units sold from 50)  

Richmond up 152.1 per cent (179 units sold from 71)  

Vancouver East up 195.8 per cent (71 units sold from 24)  

Port Coquitlam up 117.6 per cent (37 units sold from 17)  

Maple Ridge/Pitt Meadows up 77.7 per cent (64 units sold from 36)  

APARTMENTS:   

Burnaby up 72.8 per cent (235 units sold from 136)  

North Vancouver up 47.9 per cent (105 units sold from 71)  

Richmond up 85.5 per cent (230 units sold from 124)  

Vancouver East up 64.2 per cent (179 units sold from 109)  

Vancouver West up 94 per cent (584 units sold from 301)  

New Westminster up 70.6 per cent (116 units sold from 68)  

Coquitlam up 62.3 per cent (86 units sold from 53)  

Download the complete stats package by clicking here.

Lenders are expected to keep their prime lending rate steady.  Variable-rate mortgages, variable-rate credit cards, and home equity lines of credit are typically linked to a lender’s prime rate. 

Pent-up demand for residential housing has bolstered sales in Canada’s major markets—a clear signal that the housing sector has shifted into recovery mode, according to a report issued by RE/MAX.

 

More balanced market conditions have emerged, effectively ending the stronghold that buyers had on the market over the past six to eight months.  Canada’s largest markets, Toronto and Vancouver, led the charge—with June sales among the highest in history for both local real estate boards.  Close to 11,000 properties changed hands in Toronto, up 27 per cent over one year ago, setting a new record for sales in the month of June.  The figure was just slightly off the all-time peak of 11,146 units.   Residential sales in Greater Vancouver increased 75.6 per cent over one year ago, to 4,259 units, just short of the record breaking 4,333 sales, which occurred in June 2005.  Overall, major markets began to recover in March, posting escalating sales in April, May and June.  The impetus is expected to continue throughout the remainder of 2009, with most centres now forecasting year-end sales on par or ahead of 2008 levels.

 

While sales are the leading indicator, there are other clear signals that recovery is indeed underway.  Renewed consumer confidence, albeit cautious, has been key, supported by improved economic news.  In addition, we’ve seen sale price-to-list price ratios climb across the country, rising as high as 105 per cent in some communities.  Vendor incentives have also come off the table, both for resale and new housing stock.

 

The recent surge in resale activity can be attributed to three key factors—pent-up demand, low interest rates, and greater affordability.  The combination—in conjunction with declining inventory levels—has created heated market conditions in hot pocket neighbourhoods, prompting a resurgence in multiple offers in June.  Average prices are holding steady or climbing, days on market are down, and inventory levels continue to tighten, especially at entry-level price points.

 

The strength of the market, amid the most significant global recession in recent history once again underscores its relevance to the nation’s economic engine.  Canadians believe in homeownership --a fact best illustrated by the purchasers who ventured forward in recent months and snapped up some of the best real estate deals this market has seen in years.  Those who chose to sit it out on the sidelines are now facing a market in transition, characterized by the threat of rising interest rates, low inventory levels, and upward pressure on housing values. 

 

Although the current pace may be unsustainable, all markers point to greater stability in the market, leading to healthier activity in the long run, with inventory levels a key variable influencing pent-up demand. 

"As steep as the decline was, the bounce-back was just as dramatic," he added.

According to the Royal LePage figures:

• The average price of a detached bungalow declined to $327,964, about 3.5 per cent below what it was the year before
• The average price of a two-storey home was down 3.7 per cent to $392,378
• The average price of a condominium dropped four per cent to $236,612

And according to the Royal LePage figures, demand for housing has so far been strong in 2009, due to strong local economies coupled with moderate housing prices.

Yes. There is a large group of people who have great opportunities in front of them right now. Some of them just don't know it yet. Move up Buyers, First time buyers, Investors and Builders with cash for inventory are all in a good position to take advantage of this downturn market.

We are now seeing the best opportunities to purchase in several years. Competition for properties is low, interest rates are a bargain (3.99% for a 5 year fixed) and Canada looks like it will have the quickest economic recovery. Now is the time to make a move and create some wealth for your future.

If you look you can find a situation where you have a strong Vancouver Real Estate Agent representing you and an eager seller or a property that has been on the market for a long time. Just make sure your agent is capable of negotiating and can prove that they have done so in the past.

The move up buyer is the person who currently owns their own home but is looking to buy a larger lot, a nicer home, something that is completely renovated or maybe leaving a condo for a house. It is true that you will lose money selling your existing home in the current market, but that is fine because you will be buying something at a higher price which will allow you to make back every penny of the loss and create new gains.

The real estate buyer who is in the best position is the one who was on the fence 6 months ago about whether or not they should buy a better home or someone who received a promotion or raise but has been too busy with the new job to execute a move. As long as you have some job security, now is the best time to make the jump.

If you bought your current home for $600K in 2007 and now you can maybe sell it for $500K. You have taken $100K loss. That is okay if you buy a more expensive home in the same market because the home that was bought for $1.2M in 2007 is only selling for $1M today. Therefore you make back the $100K you lost on the sale of your existing home plus you saved an additional $100K by buying in today's market. The above mentioned situation will vary depending on your specific situation so be sure to work with your real estate agent to work out the exact figures to ensure it is a profitable move for you.

In Vancouver West it does not seem like things are going to slow down much more, we are starting to see the surplus inventory dry up and there is a lag in new listings.

First time buyers are also in an amazing position to jump into the real estate market feet first. The official description of a first time buyer is someone who has never owned property before or has not had an interest in owning a property for at least 4 years.

There are a lot of government programs available to assist the first time purchaser. There are rebates for land transfer tax, both municipal and provincial, there is a tax credit to help with closing costs, and you can access $25,000 of your RRSP, tax free, for your down payment ($50K if you lump together you and your spouse). And most importantly, at the introductory level there is a surplus of properties to choose from and negotiate for. The key is to have an agent who is not afraid to go in and fight for the best price for you.

Investment Buyers are also in buying heaven. Right now there are many homes that are available to buy that have multiple units in them. The rental market has stayed strong in Vancouver West and there are still a number of potential tenants filling the appointment books. This is the time to buy because you can lock in a low interest rate with a nominal down payment, which will allow all of the operating costs to be carried by the rental income.

The other segment of the investor buyers are builders. If a builder has sold off their finished products and are now sitting with cash in the bank they can buy up inventory at a good price for future projects and sit on them until the higher markets return.

In every market there are opportunities to be had, you just need to know where to look and be in the right position to take advantage of them.

President Barack Obama rolled out a bold $75 billion, three-part plan Wednesday to halt the soaring rate of mortgage foreclosures nationwide, one that seeks to encourage refinancing of homes now worth less than their mortgages and provides incentives for lenders to lower the debt load on struggling homeowners.

 

The president’s plan also offers payments to mortgage servicers, who collect mortgage payments on behalf of investors who own the mortgages originally issued by banks but were sold into a secondary market. Servicers apparently would be offered a payment for modification on par with what they would collect in the case of foreclosure.