February 2010
One of the top questions we get as Realtors would be: "Is now a good time to buy?". The answer to this question of course changes day to day based on world events and changes in your own unique situation. However here are some factors that should be taken into consideration at this point in time.
The Real Estate Board of Greater Vancouver has reported that residential property sales in Greater Vancouver have posted:An increase of 152 % versus Jan. 2009 (Jan 2009 was a very difficult month where sales volume saw the steepest decline in the past 5 years)
In terms of historical perspective, January ranked as an “average” month for housing sales
Over the past 12 months, the MLS Housing Price Index benchmark increased 17 % from January 2009
This price is 0.8 % above the previous high point in the market as recorded in May 2008
Although home prices have largely returned to their previous peaks, we continue to see a significant number of first-time and move-up buyers in the market. Much of this activity is due to low interest rates and pending HST implications.
There is also closer alignment between supply and demand in the market. At 18%, the sales-to-active listings ratio in January is approximately 10 per cent lower than we’ve seen over the last six months. Continuing as a change form the trend of low inventory from the past 5 years.
The total number of property listings on the MLS increased 14 % in January 2010 compared to last month and declined 26% from this time last year. Likely, in anticipation of the coming Olympics and the inconvenience it may represent to sellers and buyers.
In January, the number of properties sold increased 141% over the same period in 2009.
The benchmark price, as calculated by the MLS Housing Price Index, for detached properties increased 19% from January 2009.
Attached property sales in January 2010 are up 200% compared with the sales in January 2009. The benchmark price of an attached unit increased 13.4 % between January 2009 and 2010. Noteworthy though is that the average price point of these attached units was just under $500,000.
Increased inventory coming to market has tempered the price incline leading to strong sales volume with only a flat to moderate price appreciation.
New listings increased by 39 % compared to January 2009. Wider choice for buyers is leading to less emotional purchase activity and more competition for sellers to capture the attention of buyers. Despite renewed confidence post Economic Crisis, buyers have become more cautious and increasingly demand value for money.
Lynn Davis
Sotheby's International Realty
604-880-7788