Increased Demand Steadies Housing Market in Greater Vancouver

Highlights

Measurable improvement in month over month unit sales, with 17.4% increase in unit sales May 2009 vs. May 2008.
YTD benchmark residential price index is up 4.5% but continues to lag behind same period last year down 10.9%

Improving unit sales and slowing rate of price decline year over year.

Detached – units up 16.5%, benchmark price off 11.8% at $680,320
Attached – units up 19.6%, benchmark price off 9.0% at $435,848
Apartments – units up 17.2%, benchmark price off 10.2% at $349,987

Northshore Snapshot May 2009 vs. May 2008

West Van Det – 55 sold off 9.8% (6 units) Median price $1.2M off 17.2%
Mix – 30% of sales $1.M or less, 61% of sales $1.3M or less, 9% of sales $3.M+
West Van Att – 7 sold on par with prior year.
West Van Apt – 19 sold on par with prior year.

North Van Det – 134 sold up 31.4% (32 units), Median price $766K off 13.9%
8% of sales $600K or less, 18% $600K to $700K, 22% $700K to $800K, 26% $800K to $900K, 10% $900K to $1.M, meaning 84% of sales are $1.M or less
North Van Att – 58 sold up 31.8% (14 units), Median price $537K off 12.8%
North Van Apt – 103 sold up 22.6% (19 units), Median price $355K on par with prior year

Overall new listings off 36% vs. prior year. Total active listings down 16% vs. the same period in 2008.

Days On Market (DOM) for all board areas of 61 days in May. On average, it takes 27 days longer to sell a property this year compared with 2008.

 
West Van 83 DOM for May, 26 days longer than April, 26 days longer than May 2008.
North Van 36 DOM for May, 10 days shorter than April, 10 days longer than May 2008.

Corridor Sales – 4 sales in May, a new det. ParkLane home at $1.225M at Furry Creek, a 14 yr old det. resale in Lions Bay at $955K, a 5 yr old resale TH at OL at $760K, and a 5 yr old resale TH at Seascapes at $875K.
New listings – 9 detached, 5 attached, 2 building / development parcels.

Overview

• The Bank Of Canada held firm on overnight lending rates (the inter-bank lending rate) at .25%. This lends stability and certainty that underpins consumer mortgage lending rates currently at historic lows, albeit banks have started to move mortgage rates marginally higher.
• Consumer confidence appears to be in recovery, but buyers are nervous and negotiating hard.
• Recent rise in 'Loonie' value is worrisome relative to US investor / buyer interest.
• Attached properties (town homes and apartments) represent +60% of total unit sales.
• Prices stabilizing with fewer new listings, this could support unit sales growth and eventual price improvement in early to mid 2010.
   

Tom Davis | REALTOR® Royal LePage Northshore 604 787 1456

Source of information | Real Estate Board Of Greater Vancouver June 2, 2009

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