LYN HART : Associate Broker | Real Estate Sales : Blog posts labelled: real estate market : page 5

May Statistics

Posted on June 4, 2008 by Lyn Hart

Posted in real estate market, reports, statistics

Growing Supply Helps Stabilize Market Conditions
From the Real Estate Board of Greater Vancouver.

VANCOUVER, B.C. – June 3, 2008

The Greater Vancouver housing market continued its re-balance between sales and listings last month. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 30.7 per cent in May 2008 to 3,002 from the 4,331 sales recorded in May 2007.

New listings for detached, attached and apartment properties increased 20.2 per cent to 7,390 in May 2008 compared to May 2007, when 6,149 new units were listed. New listings for detached, attached and apartment properties increased 20.2 per cent to 7,390 in May 2008 compared to May 2007, when 6,149 new units were listed.

“With more property listings and a decline in the number of sales, prices are not increasing as rapidly, now down to single digits overall, which is good news from an affordability standpoint,” said REBGV president, Dave Watt. “The housing market is at a balanced state, sellers have more competition and buyers have more selection to choose from."

Sales of detached properties in May 2008 declined 33.4 per cent to 1,203 from the 1,805 sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 8.4 per cent from May 2007 to $771,250.

Sales of apartment properties declined 30.5 per cent last month to 1,244, compared to 1,789 sales in May 2007. The benchmark price of an apartment property increased 8.7 per cent from May 2007 to $389,668.

Attached property sales in May 2008 decreased 24.7 per cent to 555, compared with the 737 sales in May 2007. The benchmark price of an attached unit increased 9 per cent between May 2007 and 2008 to $478,931.

Bright spots in Greater Vancouver in May 2008 compared to May 2007:

Attached:

Coquitlam up 45.2 per cent (45 units sold from 31)

Apartments:

New Westminster up 13.6 per cent (100 units sold from 88)

The Real Estate industry is a key economic driver in British Columbia. In 2007, 38,050 homes changed hands in the Board's area generating $1.065 billion in spin-offs. Total dollar volume of residential sales set a new record at $22.25 billion and total dollar volume of all sales set a record at $22.77 billion.

The Real Estate Board of Greater Vancouver is an association representing more than 9,500 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®.

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Metro Vancouver Resale Market Cools from Red

Posted on May 22, 2008 by Lyn Hart

Posted in housing forecast, real estate market, real estate market report

MLS® sales in Metro Vancouver will come down off the near-record high reached in 2007, but stay well above the ten-year average of 31,000. Strong homebuyer demand, fuelled by job growth and a steady flow of people moving to the region will keep sales brisk. However, waning consumer confidence and high mortgage carrying costs will constrain home sales. MLS® sales will dip eight per cent to 36,000 units in 2008, and a further three per cent in 2009 as mortgage rates start to creep up.

The main factors tempering homebuyer demand will be high home prices and softening consumer sentiment. With the average resale home price in Metro

Vancouver at more than $600,000 and still rising, some potential buyers will opt to delay their purchase. Some low equity and first time home buyers could find it difficult to negotiate a mortgage with achievable monthly carrying costs, in spite of low mortgage rates. First time homebuyers are an important source of homeownership demand, particularly for apartment condominium units, making up more than one-third of people who bought a home in Metro Vancouver over the past year. The housing market collapse in some parts of the US has added uncertainty in consumers’ minds. This unease, combined with slowing economic growth in Central Canada and layoffs in the BC forest industry have contributed to lower levels of consumer confidence. Combined with mortgage rates above year-ago levels, these factors led to a decline in home sales in the first quarter of 2008 and will keep sales flat in the near term.

The supply of resale homes on the market will grow as homeowners look to capitalize on the home equity build-up resulting from four straight years of double-digit home price increases. The decision to sell may take on added urgency in light of the housing market downturn in the US. In the first quarter of 2008, the average number of active MLS® listings for sale in Metro Vancouver increased nine per cent compared to the same period last year, with the supply of apartment condominiums for sale increasing more than other home types. At the end of the first quarter there was a five month supply of homes on the market, up from four months one year ago. This level of supply is still shy of the seven to eight months supply that has characterized balanced market conditions historically in Metro Vancouver. Look for this trend of increasing listings to continue through the remainder of this year and into next.

The combination of moderating sales and more homes on the market will bring demand and supply conditions closer to balance and slow home price growth. Moderating sales and more homes on the market will mean fewer multiple-offers per property and more choice for homebuyers. Homes will take longer to sell as the market cools from the red hot pace of the past few years, and reflect a more normal pace. Home price growth will slow into the single digit range this year, with eight per cent appreciation in values forecast, and a further five per cent growth expected in 2009.

This is an article from CMHC's Housing Market Outlook - Vancouver and Abbotsford CMAs Second Quarter 2008. To read this report in its entirety, go to http://www.cmhc-schl.gc.ca/odpub/esub/64363/64363_2008_B01.pdf

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$23 Million in Just Hours!

Posted on May 11, 2008 by Lyn Hart

Posted in real estate market, vancouver condos

by Kevin Diakiw - Surrey North Delta Leader - May 07, 2008

A real estate frenzy continues in North Surrey, where $23 million worth of apartments sold in less than four hours over the weekend. Almost 10,000 people registered for the third phase of Quattro, a residential apartment project near 108 Avenue and King George Highway. The 109 available suites sold in less than four hours.

“The energy for the sale was fantastic. The suites sold as quickly as we could offer them,” said Bill Morrison, partner of PilotHouse Real Estate Marketing, who has orchestrated all of the Quattro sales. “At least half the buyers intend to live in the suites they purchased, so it’s apparent people want to be a part of the new downtown area in Surrey with its close proximity to SkyTrain and other amenities.”

Saturday’s sell-out was the third wave of brisk buying at the development. Building one in Quattro sold out in February 2007 in four hours. Less than a month – and 7,500 registrants – later, building two sold out in an unprecedented 67 minutes. The first building is expected to be finished for occupancy this fall. Construction of the second building is well underway.

Quattro is a six-phase development located on 10 acres of property at the corner of 108 Avenue and East Whalley Ring Road in North Surrey. Suites in the third phase began at $139,900, and range from 407 to 1,215 square feet.

Condominium and strata property law in British Columbia can be complex. If you're ready to buy, be sure you know what you're getting into. Have a professional realtor advise you, regardless of whether the homes are new or re-sale.

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BC Housing Forecast for 2008

Posted on May 8, 2008 by Lyn Hart

Posted in housing forecast, real estate market

According to the BC Real Estate Association, after six years of elevated sales levels and rapidly rising home prices, the Vancouver housing market is expected to be more balanced over the next 24 months.

Home sales are trending lower and are forecast to decline 8 per cent to 35,900 units in 2008. Eroding affordability has been somewhat offset by a diverse housing stock and the popularity of 40-year amortized mortgages. However, some would-be homebuyers are being squeezed out of the market by high prices. In addition, investor activity is waning in light of more gradual appreciation of home prices and uncertainty around the impact of a weak US economy and its housing recession. Vancouver will remain a bright light of North American housing markets, despite reduced unit sales.

Average residential prices are forecast to increase 9 per cent to $621,000 this year, and a further 5 per cent to $651,000 in 2009. Less upward pressure on prices is the result of fewer home sales and an inventory that is 17 per cent higher in the first quarter compared to the previous year. This is good news for homebuyers who have had to compete in recent years for a limited number of homes for sale. Housing starts in the Vancouver CMA climbed 11 per cent to 20,736 units last year.

Low new home inventories are a signal for home builders. Yet, in addition to capacity constraints, builders are facing higher financing costs resulting from tightening credit. This causes them to pay increasing attention to market segmentation and depth of demand. While housing starts were up 19 per cent in the first quarter, they are forecast to remain near 2007 levels this year, albeit declining by 1 per cent to 20,500 units.

To read the BCREA Housing Forecast publication in its entirety, go to http://www.bcrea.bc.ca/economics/forecasts/2008-05Forecast.pdf

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Associate Broker | Real Estate Sales

May Statistics

Metro Vancouver Resale Market Cools from Red

$23 Million in Just Hours!

BC Housing Forecast for 2008

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