One thing that will never change in the real estate industry is people’s differing views on where the market is headed. With this topic constantly coming up in conversation with clients and colleagues, an article in the Vancouver Sun last week caught my attention.
Just the title of the article (Vancouver home sales for July fall to lowest level since 2000) is enough to instill a little panic. Falling sales!? Lowest since 2000!?
The title is true. Based on statistics reported on Thursday by the Real Estate Board of Greater Vancouver (REBGV) property sales in Vancouver are at a low:
- 2,098 properties sold in July 2012
- Down 18.4% when compared to July 2011
- Down 11.2% when compared to June 2012
Don’t let these statistics alarm you without first looking at the price of Greater Vancouver homes. Composite benchmark prices for all Metro Vancouver properties (this includes detached, attached and condos) have remained steady. Prices have only increased by 0.6% in the past 12 months.
What is there to be afraid of?
Is it the right time to buy in BC?
Eugen Klein, the President of REBGV, believes that all of the uncertainty surrounding global financial situations has caused a lot of Vancouver buyers and investors to take a “wait and see” perspective on buying real estate. Klein also reports that:
- Investors are not as active in buying homes for profit (flipping homes)
- First time home buyer interest hasn’t changed despite changes to Canadian mortgage laws
If you are looking to sell your home in a market where property sales are down I recommend meeting with a qualified real estate agent in your local market to determine a competitive strategy to pricing your home for quick sale.
Does Vancouver’s Real Estate Market affect the Fraser Valley?
According to the Fraser Valley Real Estate Board (FVREB), there were 1,393 sales processed in July 2012. This is an increase of 5% compared to the same month last year.
Once again, Scott Olson (President of FVREB) uses the word stable to describe the Fraser Valley market:
“While our inventory remains at above-average levels, our sales are sufficiently steady to keep prices consistent.” (Home Prices Hold Steady Article)
When considering the real estate market and determining what is in your best interest remember: real estate is extremely local.
For guidance through the current real estate market in your neighborhoods throughout White Rock, Surrey and other Fraser Valley areas please contact me directly at 778-316-4290. I am more than happy to answer any of your questions!