Some rays of hope amidst the clouds

September 28, 2013

in Vancouver housing report, Vancouver real estate

The state of real estate market in Vancouver

Vancouver Richmond real estateThe better part of 2013 is behind us. As the real estate market enters into the autumn months, slower sales are expected. Real estate sales in Greater Vancouver since the second half of 2011 were selling at a much slower pace.

The once white-hot British Columbia real-estate market cooled off, sales were down, and home prices were  down generally some 10% to 12% from their peaks in 2011. The slowdown since the middle of 2011 had cast a shadow of uncertainty over the direction of the market. View Vancouver West detached homes priced over $4.0 million.

Sales to-date kept pace with 2012

Home sales in Greater Vancouver as reported by the Real Estate Board of Greater Vancouver manged to keep pace with 2012, but total sales were lower by 20% compared to the first 8 months of 2011.

Type/Year 2013 – 8 mth % Year Before 2012 – 8 mth % Year Before 2011 – 8 mth
Detached 7,858 +4% 7,581 -28% 10,552
Townhouses 3,446 +5% 3,284 -18% 4,026
Condos 7,802 -1% 7,892 -15% 9,231
Total 19,106 +2% 18,757 -21% 23,809

There are keen buying interest lurking

Home prices in 2013 haven’t plummeted, and managed to hold steady after the initial drop in 2012. At current level, a mere whiff of a discount tends to draw bids from buyers waiting to pounce. There are still a lot of buyers that have money, and once they find something in their target price, they go and buy it. Lurking in the background is money, and buyers from mainland China remain keen on Vancouver’s real estates. They are scouting other neighbourhoods, including Vancouver east side, and Burnaby for opportunities.

The high end of the market has slowed, but less costly homes are still in hot demand. On the east side, every single one that is well priced sells quickly. There are pockets of new opportunities, and with the commuting convenience of the Evergreen SkyTrain expansion, real estate activities in the Tri-Cities area of Coquitlam, Port Coquitlam and Port Moody have spike up the past 15 months.

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