June Brings Huge Jump in Real Estate Sales in Greater Vancouver
This June was the second busiest on record in Greater Vancouver thanks to a 76 per cent increase in sales compared to last year's figures. The market seems to have been stimulated by a combination of lower property values and low mortgage rates. Approximately 4.250 sales were recorded this June while the number of unsold homes declined by 27 per cent from the same month last year. Clearly, it is becoming more financially viable for many people to buy homes.
Average housing prices were still low this month. Compared to the average figure from one year ago, the standard detached home is still selling for about 8.4 per cent less. This benchmark price, which is about $700,000, is calculated by focusing on the most sellable features of a home.
Similarly, the Fraser Valley saw dramatic increases in sales. June 2009 saw a 40 per cent increase from June of last year marking the fourth busiest June on record. Buyers appear to be trying to take advantage of low prices which appear to be starting to increase again. For example, while the benchmark price is still down compared to a year ago, there has been a slight increase, approximately 1.3 per cent, from May benchmark prices.
Still, there seems to be an interesting dichotomy on the rise. Sellers have a greater opportunity to take advantage of these affordable homes but buyers are in a better bargaining position. Because of low housing prices and low mortgage rates, buyers have been more likely to walk away from deals that they feel are unfavourable. Furthermore, there continues to be a large pool of possible homes to chose from as evident in the fact that there were more than 13,000 homes still unsold in Greater Vancouver.
Nonetheless, while the market remains favourable for buyers, sellers are starting to see improvements. In the not too distant future, we may see a return to peak prices of little over a year ago. Now is the time for buyers to take full advantage of lower prices and great interest rates. Western Canada saw some of the largest drops in housing prices which is also contributing to a favourable market for first-time buyers. The past decade in Vancouver saw sharp and steady increases in housing prices making first-time buyers more cautions. But with recent drops in prices, the market is opening up and first-time buyers are growing more confident.
Average housing prices were still low this month. Compared to the average figure from one year ago, the standard detached home is still selling for about 8.4 per cent less. This benchmark price, which is about $700,000, is calculated by focusing on the most sellable features of a home.
Similarly, the Fraser Valley saw dramatic increases in sales. June 2009 saw a 40 per cent increase from June of last year marking the fourth busiest June on record. Buyers appear to be trying to take advantage of low prices which appear to be starting to increase again. For example, while the benchmark price is still down compared to a year ago, there has been a slight increase, approximately 1.3 per cent, from May benchmark prices.
Still, there seems to be an interesting dichotomy on the rise. Sellers have a greater opportunity to take advantage of these affordable homes but buyers are in a better bargaining position. Because of low housing prices and low mortgage rates, buyers have been more likely to walk away from deals that they feel are unfavourable. Furthermore, there continues to be a large pool of possible homes to chose from as evident in the fact that there were more than 13,000 homes still unsold in Greater Vancouver.
Nonetheless, while the market remains favourable for buyers, sellers are starting to see improvements. In the not too distant future, we may see a return to peak prices of little over a year ago. Now is the time for buyers to take full advantage of lower prices and great interest rates. Western Canada saw some of the largest drops in housing prices which is also contributing to a favourable market for first-time buyers. The past decade in Vancouver saw sharp and steady increases in housing prices making first-time buyers more cautions. But with recent drops in prices, the market is opening up and first-time buyers are growing more confident.
posted by VancouverResidence
