Property Sales Strengthen!

March Unit Sales Up 53% over February!

March 2009 home sales returned to levels not seen since the start of the decade with 2,265 sales reported, a 53% increase over February, but off 24.4% from March 2008 volume of 2,997 units.

The number of new listings declined 22% in March 2009 to 4,385 compared to prior year, a 5th consecutive monthly decline.

Message From The President
"There's more confidence in the housing market today than we were seeing late last year. Sales activity is rising to more typical levels given the season, and the number of homes being listed for sale is levelling off," said Scott Russell, president of the Real Estate Board of Greater Vancouver (REBGV). "REALTORS® are seeing an increasing level of interest from first-time home buyers who are attracted to low interest rates, good supply of housing, greater affordability, and a considerably lower overall cost of servicing a mortgage compared to recent years," Russell said.

New Listings Decline in March
The number of new listings declined 22% in March 2009 to 4,385 compared to prior year, a 5th consecutive monthly decline. Despite the trend, total active listings at the end of March 2009 had still reached 14,579, a 19% higher than at the end of March 2008.

Sales By Property Type (Rate of decline is slowing)
Detached property sales declined 19.6% in March 2009 to 897 from the 1,116 units sold in March 2008, whilst the benchmark price declined 15.1% from March 2008 to $649,342.
Apartment property sales declined 28.8% in March 2009 to 976 from the 1,370 units sold in March 2008, whilst the benchmark price of an apartment property in Greater Vancouver declined 13.5% from prior year to $337,099.
Attached property sales declined 23.3% in March 2009 to 392 from the 511 units sold in March 2008, whilst the benchmark price of an attached home declined 11.2% from March 2008 to $420,563.

Average Days On Market (DOM) as reported by MLS®
The average DOM reported for all board areas in March 2009 was 67 days, representing a decrease of 7 days from February 2009, and 31 days longer than in March 2008.
North Vancouver reported an average DOM for March 2009 of 45 days, representing a decrease of 16 days from February 2009, and 19 days longer than March 2008.
West Vancouver reported an average DOM for March 2009 of 87 days, representing a decrease of 2 days from February 2009, and 32 days longer than March 2008.   

My Take On The Market


·         Positive up tick in sales volume month over month, with greater than normal 53% increase in the 'differential' March sales over February.
 
·         Slowing rate of sales and price decline year over year. This indicates we are starting to compare 'like markets' i.e. we're coming into the period where sales and prices began to decline in 2008. The year over year comparisons should start to look much better as we move forward into 2009.
 
·         West Vancouver price point and product mix shift - the median selling price in March 2009 of $1.225M is off 24.4% from March 2008 at $1.62M.
1.    YTD 48.9% of detached West Van homes sold between $500K to $1.1M
 
·         Decrease in the number of new listings coming on the market, off 22% vs. prior year. Total active listings are now 14,579 a 19% year over year increase. 
1.    At 2008 avg rate of sale for April - June (approx. 2,900 units per month), we are sitting on 5 months sales in inventory in the Lower Mainland.
 
·         Days On Market showing progress month to month with All Board Areas reporting 67 DOM for March an improvement of 7 days from February, 31 days longer than March 2008 but improving, 
1.    West Vancouver 87 DOM for March, 2 days better than February, 32 days longer than March 2008. 
2.    North Vancouver at 45 DOM for March, a full 16 days better than February and only 19 days longer than March 2008.
 
·         There is a more positive attitude developing over the past few weeks. The media is saying now is a good time to buy real estate, interest rates are historically low, prices are off their peak, and the first-time buyer appears poised to make a comeback, which arguably will stimulate sales up the price ladder. 
 
·         The recent drop in value of the 'Loonie' may also see the return of the American investor/buyer.
 
·         CMHC still forecasting 30,000+ newcomers to the Lower Mainland annually, new construction starts are in steep decline meaning no real glut of unsold properties.
 
·         Attached properties (town homes and apartments) now represent over 60% of total unit sales volume.
 
·         The ‘affordability gap’ is narrowing year over year based on dollar differential between attached and detached homes and the cost to finance that differential.
It's always important to remember that sales trends differ and will vary from area to area. I would be pleased to discuss your specific situation and provide you with a detailed analysis of the latest and most accurate data.

If you're thinking of buying or selling in the next 3 months, please give me a call! I'd be pleased to meet with you.

Tom Davis, REALTOR® Royal LePage Northshore
 
Source of data - REBGV MLS® Sales Statistics - April 2, 2009
 
This communication is not intended to cause or induce breach of an existing agency agreement.