Is it the grey layer of fog that has put a grip on the Vancouver market? Or are we just experiencing the slower side of a robust past couple of years in the Vancouver real estate market? If I had the answer to why buyers are holding off in todays market then I wouldn't be sitting here writting this blog, I would be out selling homes.
Its hard to pinpoint what the cause is for the recent slowdown in sales levels but I'm sure there are a few different factors that are affecting buyers confidence. Global economics are still on the shaky wave of ups and downs & concerns over the Middle East and China are not helping. On the brighter side, the US real estate market has started to show signs of growth and stabilization. http://www.businessinsider.com/two-very-different-us-housing-markets-2013-2
The Greater Vancouver market has seen a slow down since May 2012 as detailed bellow;
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 1,351 on the Multiple Listing Service® (MLS®) in January 2013. This represents a 14.3 per cent decrease compared to the 1,577 sales recorded in January 2012, and an 18.3 per cent increase compared to the 1,142 sales in December 2012.
Last month’s sales were the second lowest January total in the region since 2001 and 18.7 per cent below the 10-year sales average for the month.
“Home sale activity has been below historical averages in Greater Vancouver for about seven months. This has caused a gradual decline in home prices of about 6 per cent since reaching a peak last spring,” Klein said.
Since reaching a peak in May of $625,100, the MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver has declined 5.9 per cent to $588,100. This represents a 2.8 per cent decline compared to this time last year.
Now here comes the silver lining...Mortgage rates are still at all time lows! I have a mortgage broker that can qualify select clients at an incredible 2.98%* on a 5 year fixed...can you say Opportunity Knocks?
(*rates subject to change and client qualifications)
The old saying that "Timing is Everything" rings true in today’s market conditions. We haven't seen a buyer’s market like this in a few years and the window of being able to negotiate and shop around as a buyer is opening.
Although inventory levels are on the lower side with many seller’s opting to pull their properties off the market hoping for better seller conditions to come there are still plenty of seller’s out there that are looking to sell. This is a great opportunity for buyer’s to take advantage of low interest rates and soft selling conditions.
Spring will bring more inventory to the market but will also bring with it more buyers and more overseas buyers looking to take advantage of the market and mortgage rate conditions.
If you are looking to buy, opportunity knocks! Call me today! 604-780-4102