High Sales Volume Drives Increased Home Values!



Highlights

3,704 properties sold in October 2009 representing an increase of 4.1% from September 2009, 171.6% vs. October 2008, and an increase of 22.3% vs. October 2007.

The benchmark residential price index is up 6.8% from October 2008 to $553,702.

Unit sales and price trending up.

All Board Areas
Detached – units up 201.6% (+994 units) to 1,487 units, benchmark price up 7.7%% to $749,808
Attached – units up 172.3% (+386 units) to 610 units, benchmark price up 4.6% to $468,798
Apartment - units up 148.4% (+960 units) to 1,607 units, benchmark price up 1.5% to $380,975

Northshore Snapshot October 2009 vs. October 2008
West Van Det – 84 sold up 342.1% (+65 units) median price $1,428,000 | YTD 581 sold up 36.1% (+154 units), median price $1,292,500 off 12.7%

Mix – 12.3% of detached sales under $1.M, 53.4% of sales under $1.5M, 4.1% of sales $3.M+ with one detached home sold at $7.9M and one at $10.65M.

West Van Att – 10 sold (+10 units) from prior year | YTD 45 sold on par with prior year, median price $770K off 17.6%
West Van Apt – 19 sold (+8 units) from prior year | YTD 140 sold up 12.9% (+16 units), median price $580K off 21.1%

North Van Det – 117 sold up 112.7% (+62 units), median price $873K up 7% | YTD 955 sold up 25.8% (+196 units), median price 816K off 7.3%

Mix – 6.4% of detached sales under $700K (down from 12% in September), 16% $700K to $800K, 28% $800K to $900K, with 68% of sales under $1.M (up from 59% in September) with 8.5% (8 units) sold between $1.5M to $2.M.

North Van Att – 41 sold up 215.4% (+28 units), median price $609K | YTD 391 sold (+111 units), median price $553K off 6.1%
North Van Apt – 112 sold up 138.3% (+65 units), median price $367K up 4.9% | YTD 848 sold up 25.8% (+174 units), median price $346K off 5.7%

New Listings

Overall new listings increased 2.1% vs. October 2008. The number of new listings vs. September 2009 decreased 13.4%. Total listings of 12,084 units are down 37% from the same period last year and down 4.1% the previous month..

Days On Market (DOM)

All board areas | 42 DOM in October. On average, property sells 21 days faster this year vs. October 2008.
West Van | 59 DOM in October. 10 days faster than September 2009 and 26 days faster than October 2008.
North Van | 33 DOM in October. 5 days faster than September 2009 and 16 days faster than October 2008.

Sea to Sky Corridor

Corridor Sales
Detached – 1 Sold in Britannia Beach ($417K), 1 sold at Lions Bay ($900K)
Land - 1 Sold in Britannia Beach ($268K)

New listings
Detached – 4 Furry Creek, 4 Lions Bay, 4 Howe Sound

Attached – 2 Furry Creek (Oliver’s Landing), 2 Howe Sound (Seascapes)

Overview

• Main market drivers continue to be:

•  
  1. Low mortgage interest rates
  2. Shift to Seller’s market
  3. Firming prices compared to prior year.
  4. New listings – Sellers pushing list prices up
  5. Cautious optimism and improving consumer confidence.

• As was the case last September, monthly sales performance was very strong compared to prior year.

•  
  1. Remember that sales were dead in the water at this time last year and performance will continue to show dramatic year over year improvement as we move through the balance of the year.

CMHC 2010 Vancouver Housing Forecast

• Population based demand will be strong

•  
  1. Net gain of interprovincial migration +5,000 migrants
  2. International migration forecast to be +40,000 per year
     1. Predominant source countries China, India, Philippines, South Korea

• Resale market to heat up

•  
  1. We’ve moved out of the Buyer’s market of early 2009 into Seller’s market territory.
  2. Sales to listings ratios indicate an uptick in demand and declining inventory of unsold homes

• Home prices increase in the Greater Vancouver market area

•  
  1. 2009 Forecast | $580,000 – 2.3%
  2. 2010 Forecast | $605,000 + 4.3%

• Consumer confidence strengthening

•  
  1. 78% of consumers believe it is a good time to buy
  2. 33% likely to buy within next 2 years

• New Construction to experience a modest rebound with multi-family starts predominating

•  
  1. 2009 Forecast range of 14,850 to 15,600 starts
  2. 2010 Forecast range of 20,200 to 26,800 starts

• BC Economy recovering in 2010

•  
  1. Led by consumer spending
  2. Labour market improving and wages rising
  3. Migration grows population and housing demand
  4. Trade will improve as US economy recovers
  5. Non-residential investment

• Lending rates to remain low through 2010

•  
  1. Capacity utilization is at record lows
  2. Energy prices although increasing are well off peak prices
  3. Housing prices rising but modestly

If you are serious about selling or buying on the North Shore or Sea To Sky corridor up to Furry Creek, please give me a call to discuss your real estate needs. I'm glad to help!

Source of information

Real Estate Board of Greater Vancouver - November 2, 2009
CMHC Vancouver Housing Conference 2010 | November 9, 2009

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