Vancouver’s Real Estate Heat Is On

The Heat is On

Hot sun, hot home sales – two things previously missing in Vancouver’s real estate market. Things change and as you know Stats Don’t Lie and the weather man tells us the heat is on.

Weather and Stats

On the weather front, July 2013 was Vancouver’s driest month since 1986 and according to the Real Estate Board of Greater Vancouver (REBGV), “last month was the highest selling month of the year in Greater Vancouver and the highest selling July since 2009.”

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Back Ordered

Lately, orders for ‘good news real estate’ have been on back order. This July, home sale delivery slowly started to arrive as “sales were 0.1 per cent above the 10-year sales average for the month.”

According to REBGV’s Pres. “demand has strengthened in our market in the last few months, which can, in part, be attributed to pent-up demand from the slowdown in sales activity we saw at the end of last year. “

Supply Chain

The Pres says “Home prices continue to experience considerable stability with minimal fluctuation throughout much of this year. This stability in price brings greater certainty to the home buying and selling process.”

The Numbers

New Listings

  • Detached, attached and apartment properties in Greater Vancouver totalled 4,854.
  • This is a 0.4 per cent decline from the 4,874 new listings in June.

For Sale

  • Total number of properties listed for sale on the MLS® in Greater Vancouver 16,618
  • a 8.1 per cent decrease compared to July 2012
  • a 3.9 per cent decline from June 201.

HPI

  • MLS® Home Price Index composite benchmark price for all residential properties is $601,900 –
  • The HPI saw a decline of 2.3 per cent YOY.
  • On the bright side – it’s up but up 2.3 per cent over the last six months.
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Detached Sales

  • 1,249 detached properties sold in July 2013.
  • on the sunny side – an increase of 59 per cent from the 787 detached sales recorded in July 2012.
  • benchmark price decreased decreased 3.1 per cent from July 2012 to $920,500.

Apartment Sales

  • 1,210 apartment properties sold in July 2013
  • an increase of 31 per cent compared to the 927 sales in July 2012
  • the benchmark price decreased 1.6 per cent from July 2012 to $368,300.

Attached Sales

  • there were 487 sales in July 2013
  • up 27 per cent compared to the 384 sales in July 2012
  • benchmark price decreased 2.6 per cent between July 2012 and 2013 to $456,700.

It’s On The Street

Knowing that Stats Don’t Lie doesn’t always explain a market turnaround. Understanding the ‘why’ need words more meaningful than “pent-up demand” and “stability”.

It’s worth taking a guess at buyer psychology in order to the understand July’s sunny turnaround. A lyrically loose guess might be found in the words of Glenn Frey.

“The heat is on, on the street and inside your head, The pressure’s high, just to stay alive You can make a break, you can win or lose That’s a chance you take, when the heat’s on you”

Full Report Here

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

Reader Comments:

Best place on meth Says:
August 2nd, 2013 at 1:16 pm

“According to REBGV’s Pres. “demand has strengthened in our market in the last few months, which can, in part, be attributed to pent-up demand from the slowdown in sales activity we saw at the end of last year. “

Let me fix that for you:

“demand has strengthened in our market in the last few months, which can, in FULL, be attributed to pent-up demand from the SOON TO EXPIRE 2.79% RATE HOLDS “

August 2nd, 2013 at 4:12 pm

@meth
“which can, in FULL”
Talk about spinning the BS. Acceptable conjecture but you don’t know that as certainty!
ps: hold down the flames

D Says:
August 3rd, 2013 at 3:35 pm

Statistics don’t lie but may be skewed one way or the other. The continuous price drops MOM in Vancouver is telling, but the number of actual new-to-relisted and eventually sold are really not tracked. So obviously the sales story would look a whole lot better than it really is, would it not?

As a professional and falling into the 5-year-new resident category, I know a few things which might be really important for both buyers and sellers.

For one, banks are limiting mortgages to 65% for new PR’s, so any property priced well over 1.3 – 1.5M range is out of the question for many. Apparently the H1 statistics is showing just that! It would be surprising if many locals are actually competing in that price range with local wages.

As a reality check, money flows to where there is greater growth potential. For the richer buyer-investors keen on real estate, there are better options for sure. Quite a few of my associates from here in Vancouver, Hong Kong and Singapore are already making a beeline for the hotspots in the US. The housing recovery there and upside potential for currency exchange are too compelling to ignore.

Speaking of that, I have been trying to cash out of a penthouse in downtown for a whole year but I am still painfully waiting for the right buyer!

Finally with recent tweaks in BC & federal immigration policies, we must expect at some point the slowdown in new arrivals (from skilled & investor categories) to impact local real estate, especially above a certain price range – if anecdotal evidence of the purchasing power of this group is to be reckoned with.

Statistics or not, I earnestly believe the jury is still out there, somewhere…!?!

August 3rd, 2013 at 5:08 pm

@ D
“obviously the sales story would look a whole lot better than it really is”
– how many times a property has been listed or re-listed has little bearing on a sold statistic. it is either sold or it isn’t. Inventory is another discussion.

Painfully waiting for the right buyer.

With due respect I do not mean to be rude but….

It is interesting that I get the opposite commentary. Buyers are painfully waiting for the right seller to be as you would say – realistic. A year on the market without it being sold should tell you that it is overpriced relative to comparable properties – now THAT is a painful reality check. I sense you are waiting for that unique buyer who does not know a few things. That Mr. D is not going to happen and I suspect you may have been the last one even though you claim otherwise.

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