September Delivers Anticipated Market Balance

Home Buyers Benefit As Market Conditions Normalize

The much anticipated and oft predicted balanced market may now be upon us.  September Sales stats indicate a less frenetic market place.
 
New Listing Inventory continues to rise affording Buyers a much needed, broader selection of product and increased competition among Sellers.  This may slow the steady increase in home prices experienced over the past few years, but is unlikely to result in any significant price decrease, if any.
 
Lower Mainland housing demand remains strong owing to the imbalance between the number of net new immigrants to the area and the need for new residential housing.

According to CMHC and Financial Institution research, net positive immigration to the province is forecast to remain buoyant in coming years, whilst new home construction is predicted to decline marginally over the same period.
 
The result; moderating upward price pressure and falling residential vacancy rates.  Encouraging news for investors. 

As always, properly priced properties continue to sell in a reasonable amount of time.

According to REBGV Stats, total residential sales for Detached, Attached and Apartment properties reached 2,519 units in September 2006, a decrease of 24.7% compared to the 3,344 units sold in September 2005, and an 11.5% drop from the 2,845 units sold in September 2004.  New listing inventory for all property categories increased by 11.4% to 5,115 units, compared to the 4,590 units listed in September 2005.

REBGV President Rick Valouche notes, “We’re still selling far more properties monthly than we were four or five years ago. There’s been a shortage of listings for some time.  If listings continue to increase at this pace, we may be able to start meeting the strong demand for real estate that has been the driving characteristic of the Greater Vancouver market for the past five years.”

Summary of September MLS statistics for the North Shore and Sea To Sky corridor.

The West Vancouver / Howe Sound market for Detached home units was off 33.8% at 49 units with the median Detached home price now $1,310,000 down from $1,524,500 in August 2006. Sales of Attached homes were 6 units, an increase of 4 units over the prior month, whilst Apartment home sales were off 55.6% (a decrease of 10 units) vs. August 2006.
 
In North Vancouver sales of Detached homes were flat vs. August 2006 at 82 units.  The median price of a Detached home was $759,000 up 7.4% from prior month. Attached home sales were off 26.8% and prices off 3.3% at $517,000 versus August 2006.  Unit sales of Apartment homes were flat at 80 units with prices up 8.4% vs. August 2006.
 
Squamish unit sales of Detached homes were up 46.7% at 22 units versus prior month with a median price of $431,000.  Unit sales of Attached homes were flat at 16 units, whilst sales of Apartment homes were up 3 units vs. prior month. 
 
At Furry Creek, ParkLane Homes released the first two of 13 homes at Ocean Crest.  ParkLane plans to build 600 new homes in the Master Planned Community over the next 10 years.
 
Year To Date
Year To Date Stats provide a clearer picture of overall market performance.
 
West Vancouver / Howe Sound YTD
Detached 580 units - YTD off 3.7%  Prices up 24.3% to $1,274,000
Attached 56 units - YTD up 7.7%  Prices up 10.1% to $812,000
Apartments 150 units - YTD down 12.3%  Prices up 25.7% to $622,250
 
North Vancouver YTD
Detached 942 units - YTD off 2.2%  Prices up 13.6% to $729,425
Attached 332 units - YTD off 10.6% Prices are up 18.2% to $495,075
Apartments 795 units - YTD down 15.5%  Prices are up 12.3% to $297,500
 
Squamish YTD
Detached 211 units YTD up 12.2%  Prices flat compared vs. prior year at $382,500.
Attached 135 units YTD up 25%  Prices are up 10.7% to $295,000
Apartments 58 units YTD up 70.6%  Prices are up 37% to $226,000

A snapshot of the Sea To Sky Corridor illustrates the unique characteristics of the marketplace:

Howe Sound YTD – Unit sales Off, Prices Mixed
Detached 3 units sold vs. 5 in 2005 Price $1,437,000 down from $1,480,000 in 2005
Attached 8 units sold flat vs. 9 units in 2005 Price $866,798 up from $770,841 in 2005

Lions Bay YTD – Unit Sales Down, Prices Up
Detached 12 units sold down vs. 24 in 2005 Price $1,018,317 up from $848,917 in 2005
 
Furry Creek YTD - Unit Sales Up Prices Up
Detached 8 units sold up from 2 in 2005 Price $1,077,500 up from $870,000 in 2005
Attached 4 units sold up from 2 in 2005 Price $849,750 down from $1,000,000 in 2005
Note: Prices skewed by small sample and mix of waterfront vs. inner units, overall prices are Up.
 

Inventory of New Listings in September

West Vancouver Detached Homes up 27%, Attached Homes flat and Apartment homes up 38%. 

North Vancouver Detached Homes up 51%, Attached Homes up 54% and Apartment homes up 58%.
 
Squamish Detached Homes Down 24%, Attached Homes Down 18%, and Apartment Homes Up 6%

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 us 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.