Lower Mainland Continues Strong Real Estate Showing
Despite some signs that real estate may be levelling and some experts predicting a reverse in the recent strength of the market in Canada, the Lower Mainland saw 172% more sales this October compared to the same month last year. In addition, housing prices continue to rise as well. While a mere 1,704 sales were recorded in October 2008, the figures this year soared to 3,704 according to the Multiple Listing Service and benchmark figures are up as well. More surprisingly, sales figures this year also eclipse those of October 2007 by an impressive 22%.
The benchmark, defined as the average price for the typical home sold, increased further to $749,808 last month which represents an 8% improvement on that figure from the same month last year. While still below the peak benchmark, real estate experts are happy to see these figures continuing upward. The benchmark for detached homes also improved approximately 0.4% to $491,128, a somewhat more modest gain.
In all likelihood, sales activity continues to be buoyed by favourable mortgage rates. Nevertheless, foreign investment appears to be on the rise as well. Between the greater confidence of local buyers and this return of foreign interest in our real estate markets all signs point to further recovery throughout the Lower Mainland.
Meanwhile, inventories are shrinking. In fact, the total number of active listings in October fell 4% from September and a whopping 37% compared to last October. In the simplest business terms: increased demand and decreased supply while drive prices up. Although October saw a 7% increase in new listings from September, there are approximately 3000 fewer units on the market.
November and December will almost certainly see some leveling of these figures as they are typically slow months on the real estate calendar. In addition, experts are warning that mortgage rates are likely to creep up again. As the economy improves banks will start raising rates and this will undoubtedly impact the real estate market. So as the evidence points to continued strengthening of the real estate market throughout the Lower Mainland, future, uncontrollable factors will definitely have an effect.
The benchmark, defined as the average price for the typical home sold, increased further to $749,808 last month which represents an 8% improvement on that figure from the same month last year. While still below the peak benchmark, real estate experts are happy to see these figures continuing upward. The benchmark for detached homes also improved approximately 0.4% to $491,128, a somewhat more modest gain.
In all likelihood, sales activity continues to be buoyed by favourable mortgage rates. Nevertheless, foreign investment appears to be on the rise as well. Between the greater confidence of local buyers and this return of foreign interest in our real estate markets all signs point to further recovery throughout the Lower Mainland.
Meanwhile, inventories are shrinking. In fact, the total number of active listings in October fell 4% from September and a whopping 37% compared to last October. In the simplest business terms: increased demand and decreased supply while drive prices up. Although October saw a 7% increase in new listings from September, there are approximately 3000 fewer units on the market.
November and December will almost certainly see some leveling of these figures as they are typically slow months on the real estate calendar. In addition, experts are warning that mortgage rates are likely to creep up again. As the economy improves banks will start raising rates and this will undoubtedly impact the real estate market. So as the evidence points to continued strengthening of the real estate market throughout the Lower Mainland, future, uncontrollable factors will definitely have an effect.
Labels: Greater Vancouver Homes
posted by VancouverResidence
