Not long now for the weekend and hopefully seeing the return of some proper beautiful spring weather.
I have been watching and listening into world property reports over the last week to see what is happening and also to compare our own Vancouver markets and see the big picture. Some very interesting stuff has been aired recently. No doubt we are witnessing a slowing down of certain property markets in the city, particularly down town condos and west side luxury homes. The official data in relation to that is as follows:
Greater Vancouver has 18,422 active listings as of
May 21st, 2012. Sales are steady at 1,822. We should see the month
finish with 6 Month’s Supply of listings (Balanced Market).
Vancouver West Residential has 3,521 active listings
as of May 21st. Sales for the month so far in May are at 407 and we
should see the month finish 7 month’s supply of listings (Balanced trending
towards Buyer’s Market).
Vancouver West Side Houses has 1,032 active listings
as of May 21st. Sales for the month so far in May are at 87 and we
should see the month finish with 8 month’s supply of listings (Buyer’s Market).
In 2008, we saw a high for total listings in Greater Vancouver at 21,000 on
September 30th, with 1,053 active listings for West Side Houses. So yes, there
are a lot of houses for sale in Vancouver’s West Side currently.
Vancouver West Side Condos has 2,188 active listings
as of May 21st. Sales for the month so far in May are at 285 and we
should see the month finish with 6 month’s supply of listings (Balanced
Market).
Vancouver East Side Residential has 1,327 active
listings as of May 21st. Sales for the month so far in May are at
207 and we should see the month finish with 4 month’s supply of listings
(Seller’s Market).
Vancouver East Side Houses has 576 active listings as
of May 21st. Sales for the month so far in May are at 100 and we
should see the month finish with 4 month’s supply of listings (Seller’s Market).
The BBC and PBS World News features for property markets have been looking at the Canadian property booms, especially in Vancouver and Toronto and trying to determine whether we are gearing up for the same problems as Ireland and the US, and now Greece. Well when everyone calms down and looks at the facts, we don't even come close to the borrowing and development disasters that these countries adopted and implemented. Even with the heated markets that Vancouver has seen over the last ten years, the above honorary mentions were at least 4 times as large and out of control as we could ever possibly imagine. Canadian banks never bought into the sub prime markets, did not loan developers money to build where there were no markets and many of us still have to qualify at a high interest rate of around 5.25% for a mortgage, regardless of the cheap interest rates available. No fog test for qualification here.
No doubt the price fuelling customers of yesterday in the luxury housing markets, especially from China, have diminished considerably this year. Partly because they have seen a squeeze on their own manufacturing dollar profits due to the global financial slow down, fewer orders, over inflated and now declining local real estate investments. They have also finally realised how much they have been overpaying for property here in Vancouver and are no longer turning up in droves with twenty competing offers and 3-5 hundred thousand over the asking, skewing the local real estate markets for everyone else and just not getting great value. People are way more cautious now, not so willing to get ripped off and so we have entered a more moderate balanced market. And that is a good thing.
So for all you sceptics out there, especially those people renting long term and handing all your hard earned money over to the landlord. This is a great time to get your own place. Take advantage of the softening prices and the buyers market that exists in so many parts of the city and hang onto your own money and make it work for you. If you don't have the deposit, talk us here at imaginevancouver.com as you may be very surprised at how you can overcome that hurdle.
For sellers: if you are wanting to list your place, be in the market and not just on it. If you have to list your place at a lower price than previous years, remember it is all relative. The place you want to buy will also have dropped it's price so it will usually even itself out in the end.
We are returning to a more normal manageable market and that is a much more sustainable position to be in. We are still living in one of the most liveable highly rated cities in the world and thousands of people are coming each year to be a part of that. Vancouver is evolving every year and the it seems the only way is up.
Be happy, positive and most of all: Make this place work for you!
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