Supply and demand aligning in January

Feb 5, 2010

Residential sales in Greater Vancouver increased 152.4% last month vs. January 2009. However, this represents a 23% decline from the torrid December sales performance.

Prices continued to march forward with the Benchmark price for all residential properties in Greater Vancouver up 17.2% over the past 12 months.

The market is being fueled by first-time and move-up buyers, thanks to low interest rates and the diverse range of properties available today.

The number of new listings has been rising and was 39% higher than new listings to the market during January 2009. Total number of property listings on MLS increased 14% in January 2010 compared to December 2009 but declined 26% from January 2009.

Some believe, although I don't agree, that February sales may be a bit quieter due to the Olympic effect. It may be a good time for motivated buyers to search for properties provided they can navigate through the street closures and traffic jams!

I am sure that downtown Vancouver open houses will be swarming with the international crowd so sellers will want to "be there" during these 3 weeks.

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HIGH VACANCY & DISCOUNT RATES MAY BE SHORT-LIVED.

The rental market has become a casualty of a busy real estate market.
All those tenants opting for home ownership over the past year has resulted in a spike in vacancy rates (2.1%) and a sizeable drop (-20% in some cases) in rental rates. It seems that many prospective tenants are in a "wait and see" mode, resisting any commitment to long term leases. Many seem to be counting on a post-Olympic surge in supply of rental properties with further discounting. However, balance may be restored sooner than later if prices continue their rapid ascent and interest rates head higher. Diminishing affordability for many home buyers combined with the attraction of lower rents will move more people back to the rental market. Stay posted.

"Vacancy rate expected to shrink"
see News Articles on my site

"FULL MARKET UPDATE"- (REBGV)
Sales/ Listings Statistics and Graphs for all areas.

All information is approximate

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