Buyer's market conditions remain strong in early 2009
The first month of the year is over and the Real Estate Board of Greater vancouver (REBGV) statistics are out so we can start assessing how the market is developing in 2009. By comparing January's statistics to December 2008 we get the following results.
Listings are up 165% for detached homes, up 235% for attached homes, and up 199% for apartments (condo's). Not a big surprise as the market often see's an increase in new listing activity after commonly slow holiday seasons.
Sales when compared the same way have detached home sales down 20%, attached homes sales down 50%, and apartment sales down 3%. Not typical for this time of year (which usually see an increase), but again no real surprise as we are in a recession and consumer confidence is at its lowest point in over 30 years.
This means as we head into February 2009 we are experiencing an increase in new listings and decrease in sales. These type of conditions existed during a large part of 2008 and resulted in the strong buyer's market we continue to see today. Will this trend continue? As long as a large supply of property listings remain on the market and sales remain low, Vancouver will continue to see downwards pressure on home pricing. Recent predictions by the BC Real Estate association are for another possible 13% reduction in property prices this year before we return to more balanced conditions.
Low interest rates, a broad selection, and the most affordable prices since 2006 have resulted in the best buying opportunities seen in a decade. Concern for job security and declining net worth are however keeping many buyer's on the sidelines.
What can we expect as we head into spring? Seller's that price aggressively will continue to be able to sell, while those that don't will follow the market down with price reductions and ultimatley net less. Buyer's will continue to enjoy the luxury of selection and negotiation up until we see the number of listings on the market reduced and we return to more balanced conditions. Whether interest rates will remain low is difficult to predict.
Every market has its opportunities. Contact Dean Wegman of Royal LePage, Vancouver Realtor, by clicking here and learn how to make today's market work for you.
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