Articles

House Prices Strong While Market Cools

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Thursday October 21, 2010

“Housing Prices Remain in Tact as Market Slows"

“ September Real Estate In Review ”

Greater Vancouver Real Estate September 2010- VANCOUVER, BC – Apart from apartment sales which rose by 0.8% per cent in the lower mainland compared to August 2010, home sales and listings continued to decline. Concurrently home prices maintained their value and are expected to do so through the end of the year. The market cool-down has been attributed to introduction of the HST and is undergoing a correction -further balancing itself out; nevertheless the favourably low interest rates continued to attract first time and luxury home buyers to the area. In September the luxury home market ended on a high note with 1,356 sales of homes worth more than 1.5 million over an eight month period -a 44 per cent increase from 2009. Meanwhile the housing market was dominated by first time home buyers accounting for over 58 per cent of the transactions.

Burnaby Real Estate – Despite the cool-down in house sales, listings in the region rose significantly compared to August 2010. Likewise, house prices for both apartment and single unit homes continued to rise as foreign investment poured into new developments and Government gaming grants of $25 million were allocated towards development of community and social programs in the city. In September Burnaby ranked fourth most expensive housing market in North America for a 4 bedroom home at an average price of $705 746, further proving market value and stability in the area.

Outlook: On the news front Burnaby-New Westminster MP Peter Julian tabled a private members bill to help home buyers in purchasing their homes. The bill would amend the Income Tax Act to allow buyers to adjust to inflation the amounts they’re allowed to withdraw from their RRSP’s. If you would like to find out how that makes homeownership more accessible to you please contact me for more information.

Greater Vancouver Real Estate Stats for September 2010:

*All figures set against September 2009

Detached Sales

Vancouver West: Down by 18% (from 175 to 143)

Vancouver East: Down by 54% (from 239 units sold to 108)

Burnaby: Down by 40 % (from 127 units sold to 75)

Attached Sales

Vancouver West: Down by 40% (from 81 units sold to 48)

Vancouver East: Down by 22% (from 50 units sold to 39)

Burnaby: Down by 58% (from 105 units sold to 44)

Apartment Sales

Vancouver West: Down by 32% (from 477 units sold to 325)

Vancouver East: Down by 37% (from 144 units sold to 90)

Burnaby: Down by 35% (from 194 units sold to 126)

NOTE: The MLSLink Housing Price Index® (HPI) calculates benchmark prices, which represents a typical property within a market. The HPI takes into consideration what averages and medians do not - the price of housing features such as lot size, age, number of rooms, ect. These 'typical house' in a given area. Each month's sales determine the current prices paid for bedrooms, bathrooms, fireplaces, ect. and apply those new values to the typical house model. The HPI measures typical, pure price change (inflation or deflation).

For more information and a free market - analysis please call Italo Fionda