Home prices continue to rise but still below 2008 peak
Strong demand and high sales in Vancouver's real estate market continue to put upwards pressure on home prices as we enter into November.
Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.8 percent to $553,702 from $518,668 in October 2008. Though we have seen home prices rising in 2009 we still have not reached the peak levels experienced in early 2008.
When comparing the statistics for September 2009 and October 2009 for Vancouver West we get the following results.
New listings have decreased 23.2 percent for detached properties, decreased 30.9 percent for attached (town home) properties, and increased 4.4 percent for apartments (condos) properties.
Sales have increased 14.3 percent for detached homes, decreased 3.7 percent for attached homes, and increased 10.9 percent for apartments.
Strong housing demand and high sales currently exist in Vancouver for several reasons. Confidence from local buyers remains high, interest rates remain historically very low, and foreign investors are returning to the market. Many of the first time home buyer's motivated by lower prices and low interest rates have now bought homes.
As we enter the last months of the year we can expect sales to moderate and market conditions become more balanced. The months of November and December typically experience a slowdown due to the holiday season.
Looking into 2010 the Canadian Mortgage and Housing Corporation (CMHC) is forecasting Metro Vancouver sales to remain relatively robust as long as interest rates remain relatively low.
As the economy improves we can expect interest rates to increase, but most banks are forecasting only a slight rise next year. The rapid rebound of Vancouver's real estate market suggests that the economic recession in the region was not as severe as in other regions.
For more information on Vancouver real estate market conditions click here. To contact Vancouver Realtor Dean Wegman click here.
