August Sales Buoyant On Strong Consumer Demand
 

 
Third Strongest Residential Housing Market On Record!

 
According to MLS Data, August residential unit sales were off 17.8% with 2,998 units sold in August 2006 vs. 3,649 units in August 2005.  Conversely, August 2006 unit sales posted a 20.5% improvement over August 2004.  According to REBGV President Rick Valouche, "the August 2006 Residential Housing Market was the third strongest on record."  Furthermore, Valouche states that "We aren't seeing signs of a significant housing market slow down anytime soon."

 
There have been a flurry of recent articles on the state of the Vancouver Housing Market.  There appears to be general consensus that interest rates are likely to remain stable with some pundits predicting a slight drop in the prime lending rate in early 2007. 

Although most agree that the overall housing market will be more balanced in 2007, the fundamentals for a buoyant housing market remain in place:

• Forecasted Stability / Moderation of Interest Rates - maintains Affordability in the face of overall rising housing costs

• CMHC and Credit Union of BC both forecast Positive Net Migration to BC and the Lower Mainland specifically - stimulates demand for various housing products

• Housing Starts forecast to drop marginally in coming years, remaining strong versus historic levels - protects the market place from a glut of unsold housing (the bubble phenomenon)

• Moderation in Price Growth due to increased numbers of Listed Properties - provides Buyers with more choices to consider, promotes competition.

Summary of Real Estate Board statistics for the North Shore and Sea To Sky corridor.

August Month
The West Vancouver / Howe Sound market for Detached home units was off 26.7% at 63 units.  However the average price of a Detached home was up to $1,524,500 an increase of 31.4% compared with July 2006. Attached home sales were off 71.4% (a decrease of 5 units) whilst Apartment home sales were off 18.1% (a decrease of 4 units) versus August 2006.
 
In North Vancouver sales of Detached homes were off 15.0% at 79 units.  The average price of a Detached home was $706,500 off 5.8% from July 2006. Attached home sales were up 24.2% and prices up 2.7% versus July 2006 at $535,000.  Unit sales of Apartment homes also showed an increase of 7.1% with prices off 5.7% versus July 2006.
 
Squamish unit sales of Detached homes were down 93.3% at 15 units versus prior month.  Unit sales of Attached homes were up 54.5% at 17 units whilst sales of Apartment homes were consistent with prior month. 
 
At Furry Creek, the market awaits the launch of the next phase of ParkLane Homes Master Planned Community of 600 new homes to be built over the next 10 years.  We anticipate the release of 13 single family Ocean View homes at Ocean Crest later this month.
 
Year To Date
Year To Date Stats provide a clearer picture of market performance.  Remember that 2006 was the strongest housing market on record:
 
West Vancouver / Howe Sound YTD
Detached 531 units - YTD up .6%  Prices up 27.9% to $1,270,000
Attached 56 units - YTD up 7.7%  Prices up 11.2% to $812,000
Apartments 150 units - YTD down 12.3%  Prices up 25.6% to $615,500
 
North Vancouver YTD
Detached 860 units - YTD No Change  Prices up 14.9% to $729,000
Attached 302 units - YTD down 11.6% Prices are up 17.7% to $495,075
Apartments 715 units - YTD down 16.1%  Prices are up 12.7% to $297,000
 
Squamish YTD
Detached 189 units YTD up 10.5%  Prices are off 1.1% compared with last year at $373,500.
Attached 119 units YTD up 24%  Prices are up 10.6% to $295,000
Apartments 50 units YTD up 56.3%  Prices are up 37.8% to $228,000 

 
Inventory of New Listings

 
August Month
New Listing Inventory was essentially flat versus prior month with the following exceptions:

West Vancouver Detached Homes up 8.3%, whilst new listings of Apartment homes declined 50%. 

North Vancouver inventory of New Listings for Attached and Apartment homes declined 40.3% and 22.5% respectively. 

 
Year To Date
West Vancouver Detached listings up 8.9% at 854, Attached listings up 28.2% at 100 and Apartment listings down 32.9% at 200 new listings.

North Vancouver Detached listings up 8.9% at 1,171, Attached listings are down 3.7% at 376 and Apartment listings are unchanged at 916.

Squamish Detached listings are down 4% at 335, Attached listings up 15% at 169, and Apartment listings up 111.5% at 129.

If you or someone you know is thinking of buying or selling real estate on the North Shore and Sea To Sky Corridor to Furry Creek including Britannia Beach, please give me a call, you’ll be glad you did!!

Anita Schmitt, Realtor - Royal LePage Northshore 604.787.1456

Tom Davis, Realtor - Royal LePage Northshore 604.315.0172
 
 

This communication is not intended to cause or induce breach of an existing agency agreement.