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.”
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. “
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.”
- 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.
- 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.
- 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.
- 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.
- 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.
- 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”