Vancouver Real Estate - August - No Surprise

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. 

 

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