The Vancouver Real Estate Market is improving: Is this positive spin? No, the market has shown dramatic improvement in the last month. In fact transactions at RE/MAX Crest are up approximately 30% over last year for the month of June. There are many explanations for the increase in market activity. A couple of the contributing factors that we have experienced firsthand in recent weeks are listed below:
1) Interest Rate Increases: In recent weeks the 5-year fixed rates moved from 2.79% to 3.19%. Dale and I have several buyers whose rate holds will expire in September which is creating a greater sense of urgency for these buyers. We are experiencing similar feedback from other agents in our office and at open houses and showings.
2) Pent-up demand: The Vancouver real estate market experienced three quarters of what most would label a sluggish real estate market. During these market conditions many buyers and sellers take a "wait and see" approach given the uncertainty and fear of property devaluation. Even the most patient buyers and sellers will only wait so long before making a move.
In many areas the market has moved to a “balanced” market meaning neither buyers nor sellers have a distinct advantage. There are great opportunities for buyers and sellers in our current market.
B.C. Real Estate Association Release:
Vancouver, BC – July 16, 2013. The British Columbia Real Estate Association (BCREA) reports that a total of 7,196 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC in the month of June, up 5.6 per cent from June of 2012. Total sales dollar volume was 11.9 per cent higher at $3.84 billion. The average MLS® residential price in the province was $533,219, up 6 per cent from a year ago.
“BC home sales rose 6.7 per cent from May, on a seasonally adjusted basis, with June being the fourth consecutive month of increasing sales activity,” said Cameron Muir, BCREA Chief Economist. “Since February, home sales across the province have climbed by 23 per cent, on a seasonally adjusted basis,” added Muir.
On a quarterly basis, MLS® residential sales climbed 15 per cent in the second quarter, while the inventory of homes for sale has moved down 5 per cent over the last two quarters, creating improved market conditions in many regions of the province.
Year-to-date, BC residential sales dollar volume was down 8.2 per cent to $18.8 billion, compared to the same period last year. Residential unit sales were down 7.8 per cent to 35,336 units, while the average MLS® residential price was down 0.4 per cent at $531,401.