- Created on Tuesday, 03 May 2011 08:40
- Written by Super User
How is the market?
Are we living in a housing Bubble? What happened to all the buyers?
Sagging home sales and flat prices have prompted speculation that the “housing bubble” might be about to burst –doesn’t this immediately catch your attention?
According to Tsur Somerville, Director of the University of BC’s center for urban economics in the Sauder School of business, there is no housing bubble.
“You can’t burst a bubble that wasn’t there…a bubble isn’t just defined by high prices”
For prices to go down significantly you need people who have to sell, either because the economy has collapsed and they don’t have any income or developers have built a whole bunch of units that are unsold and the bank is screaming at them or foreclosing or something like that.
None of those conditions appear imminent.
Buyers and Sellers Gap….What actually is happening!
When it comes to market predictions and projections, buyers often buy when everyone else is buying. When the media and others speculate a potential shift in the market, buyers hesitate or prolong their plan to purchase. This may shrink the buyer pool and in turn can slow down the sales activity. In reality, the average actual sale prices have seen a minimal change in percentage since last year this time. (13 month market trend)
Quick Stats | 5 Year Trend
North Vancouver Detached Homes Average Sale Price +16%
Boulevard +13% Blueridge +10% Braemer +12% Edgemont +20% Central Lonsdale +16% Deep Cove +25% Grouse Woods +12
Hamilton +31% Indian River +20% Lynnmour +33% Norgate +10% Delbrook - +15% Forest Hills - +28% Lynn Valley- +15%
Queensbury +7% Upper Lonsdale +28% Westlynn +4% Windsor Park +9%
Conditions continue to favor buyers in the Greater Vancouver housing market
The summer of 2012 drew to a close in September with home sale activity well below historical averages in the Greater Vancouver housing market.
There’s been a clear reduction in buyer demand in the last few months.
Today, our sales-to-active-listings ratio sits at 8 per cent, which puts us in a buyer’s market. This ratio has been declining in our market since March when it was 19 per cent, Klein said.
Prices in the region remain relatively stable overall, although we do see some reductions in the areas that have had some of the largest price increases over the last year or two, Klein said.
The facts about our economy….
British Columbia’s economy has performed well considering the current global economic conditions, and has maintained relatively positive outlook in 2012-2013. Export activity was up 10.5 percent year over year while freight shipments through port Metro Vancouver grew 13%. The unemployment rate dropped to 6.6 percent over the summer; while a surprising jump in the number of non residential building permits suggests that construction- related business sectors could see a boost over the next six to twelve months.
The BC real estate association is optimistic. Chief economist Cameron Muir is predicting increased sales in 2012-2013 because of continuing low interest rates, population growth and more full time jobs.
Basic Economics – Supply and Demand: We are living in an incredibly desirable community where available land is very scarce…yet the demand is still very high.
In this Market…
Do not panic about the market dropping or this so called “bubble” bursting! What you have to keep in mind is your short and long term home ownership goals. To be successful in the real estate market you have to understand the cyclical seasonal changes and apply your own strategic plan to it!
Simply, the market is very specific.
My philosophy in selling in today’s market is to price your property accordingly. Here is the trick…. most sellers are living with yesterday’s sales figures and a larger buyer’s pool in mind, and they want the multiple offers to come in to increase the sales price. The reality is, a house is only worth what this current market will pay for it. Make your home show well, price it very competitive and it will sell!
Thinking of buying and investing in Vancouver’s Real Estate Market…
Take a look at the trends in the last few years. In a simply stated way: Buy Low, Sell High! Take advantage of this market and set your home ownership goals for the next 5-10 years.
Ask Me Everything You Need To Know About Your Real Estate Market Today!
Weather buying or selling, getting the expert knowledge and skilled services of a real estate professional can prove profitable and keep your sale or purchase problem free.
Why Invest on the North Shore? Watch my personal Video at www.PontilloHomes.comand click on the Media/Video page or direct at www.youtube.com/pontillorealty
Thanks for reading…any questions, do not hesitate to give me a call
"The North Shore is what I call home, The Real Estate market is my Passion and Marketing Properties is what I do. "
The real estate industry is a key economic driver in British Columbia. In 2010, 30,595 homes changed ownership in the Board's area, generating $1.28 billion in spin-off activity and 8,567 jobs. The total dollar value of residential sales transacted through the MLS® system in Greater Vancouver totalled $21 billion in 2010. The Real Estate Board of Greater Vancouver is an association representing more than 10,400 REALTORS® and their companies. The Board provides a variety of member services, including the Multiple Listing Service®. For more
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