Hello and Welcome Back.
The August numbers are in and its not much of a surprise - based on what we were seeing at street level in our area. Very busy summer and it came back with a storm - on most fronts. There are a few reasons for this surge. The threat of interest rates popping up a bit - which they did with most lenders. This drove many first time buyers who were sitting on the sidelines - playing the wait and see game - to make a move either on an actual purchase or locking in at one final interest rate hold - with their lenders. Most were offering 120 days.
Another was CMHC putting a cap on the amount of mortage value they would insure. This cap will force lenders - we all know how much risk they will NOT take - to dig even deeper on the ability for the client to pay and of course - take closer looks at the value of the property they are lending on.
Of course the fact of waiting and seeing if the predictions of a Vancouver real estate drop - to match the disaster south of the Border would materialize - have many now back in the game. Many factors influence our real estate. Migration is a huge factor as the economy sputters and treads water. We are most certainly not out of it yet - nor are our neighbours down south. But Vancouver seems to be holding its own. No predictions here - but well priced homes are selling in very short order. Yes there is still a nervous edge on some fronts but most people are moving on with life and not letting 1-3 % fluctuations in pricing affect their future. Rental rates are back at peak levels in downtown areas.
August. Much like July - surpassed previous years on activity. A welcome come-back for many. Sales of detached homes were up 69% - yes 69% - from August of 2012. The nerves have settled a bit. Pricing decreased by only 2%. This is a classic case of the stand-off between buyers and sellers of previous summers - reaching a concensus.
Condo sales are up 40% from August of 2012. Prices moved about 1% on these homes. Activity is up - prices have stabilized. Many are seeing this as the new norm and not renting or holding off any longer. First time buyers are now ready to accept - there is no "crash" on the horizon. Cheap money - time to make a move. Classic case for a buyer I worked with in June. Was renting a one bedroom at $1600 a month. Purhased a one bedroom of the same size and the mortgage payment hovered around $1260. Even with condo fees - he was still under the rental rate.
Any questions or comments are more than welcome. Stats are stats - but if you want HONEST answers - send me a note or call. Straight talk. Straight Answers.