Residential Housing Price Decline

Creates Buying Opportunities

 
Housing price reductions across Greater Vancouver over the last six months have eliminated price gains witnessed in the first quarter of 2008.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 8.8 per cent between May and October 2008, resulting in a 3.9 per cent year-to-date price reduction for detached, attached and apartment properties in Greater Vancouver between Octobers 2007 and 2008. In May 2008, the overall residential benchmark price was $568,411, compared to $518,668 in October 2008.

“Home sales are not keeping pace with the positive economic conditions in BC,” said REBGV president, Dave Watt. “That’s a direct result of a loss of consumer confidence in the overall market. Accordingly, today’s housing market is characterized by moderating home prices and wide selection. It’s definitely a buyer’s market.”

Residential property sales in Greater Vancouver declined 55 per cent in October 2008 to 1,364 from the 3,028 sales recorded in October 2007.

Active listings totalled 19,257 in October 2008, a three per cent decline from the 19,852 active listings reported in September 2008. New listings for detached, attached and apartment properties increased one per cent to 4,867 in October 2008 compared to October 2007, when 4,819 new units were listed.

Sales of detached properties in October 2008 declined 56.5 per cent to 493 from the 1,133 sales recorded during the same period in 2007. The benchmark price for detached properties declined 4.7 per cent from October 2007 to $695,962. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 9.8 per cent.

Sales of apartment properties in October 2008 declined 52.7 per cent to 647, compared to 1,368 sales in October 2007. The benchmark price of an apartment property declined 3.5 per cent from October 2007 to $358,359. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined eight per cent.

Home Prices Adapt to Affordability Demands

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver declined 42.9 per cent in September 2008 to1,585 from the 2,776 sales recorded in September 2007.

Tier 1

Estimated Annual Savings = $20-50

• Install low-flow faucets and showerheads to reduce water usage and reduce the cost of heating water by up to 50%
• Choose energy efficient appliances
• Install outdoor motion detector switches
• Replace air conditioner and furnace filters regularly

Tier 2

Estimated Annual Savings = $50-100

• Use power bars to switch off your electronics
• Switch to compact fluorescent light bulbs
• Install a programmable thermostat

Tier 3

Estimated Annual Savings = $100-250

• Caulk all windows and make sure your home is properly insulated
• Use ceiling fans year round to help circulate warm and cool air evenly around a room*
• Replacing an old refrigerator with an energy efficient one can save enough electricity to light the average home for more than four and a half months

Tier 4

Estimated Annual Savings = $250+

• Replace your existing windows and doors with energy efficient designs that will reduce your home’s energy use (both heating and cooling).
• Replace your existing furnace with a high efficiency furnace. They have increased safety (for newer airtight homes), longevity and there is no need for a chimney.

(Courtesy of RBC)