July 10, 2013

Vancouver Housing Market Shows Improvement

Curious about how the real estate market is doing in Vancouver? Recent reports paint a very positive outlook which is welcome news indeed. Articles and releases from the British Columbia Real Estate Association, Vancouver Sun, Canada Mortgage and Housing Corp, Statistics Canada and Royal LePage support the idea that market conditions are finally beginning to improve for the province.

The Canada Mortgage and Housing Corp. showed that housing starts in British Columbia’s residental and multiple-unit new construction received a boost in September which contrasts significantly with the slowing of housing starts nationwide. According to their report released this month, builders started work on 2,305 new homes in September bringing the province’s total starts to 17,791 for the first 9 months of 2010, a number amounting to a 91% increase in comparison to the same time period from last year. Home builders in the Vancouver metropolitan area accounted for 71% of of British Columbia’s total September housing starts. They credit an increase in the pace of multiple-unit housing starts with providing the boost seen in September’s improving numbers. In the article, market analyst Robyn Adamache said, “Although most of the new multiple family units built were apartment condominiums, we are starting to see a growing number of homes with secondary suites being constructed.“

Statistics Canada noted in their building permits report for August, after four months of decline, the value of the residential sector increased 2.0% to $3.5 billion, thanks to a substantial gain in permits for multi-family dwellings, particularly in British Columbia, Ontario and Quebec.

[caption id="attachment_350" align="aligncenter" width="371" caption="Chart from BCREA report - click to download full article"][/caption]

While the British Columbia Real Estate Association (BCREA) reported a decline in sales of units in September as compared with the same month from last year, the seasonally adjusted basis shows an increase of 2 percent from August of this year.

Average residential price also climbed about 4% to an average of $493,846 According to Cameron Muir, BCREA Chief Economist, “Market conditions have improved, with the months of supply declining from 11.1 in June to 8.9 in September. The current downward pressure on mortgage rates is expected to bolster housing demand this fall as consumers take advantage of a second opportunity to secure near record low interest rates.”

The positive news on the housing market is welcome as the fears of a housing downturn begin to abate. "Helped by very low rates in a competitive mortgage financing market, the third quarter was slightly stronger than anticipated, on new demand fueled by improved affordability in many regions,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. In a recent article they report that the housing market appears to be stabilizing and homes are appreciating at normal rates.

In the Vancouver Sun, the latest headlines reflect the same note of positivity with titles such as "Canadian Housing Sales Rise for Second Straight Month," and "BC Real Estate Sales Beat Previous Month In September."  All of these reports and good news bode well for potential home buyers in the Vancouver metro area who are looking to take advantage of low interest rates and invest in a home. Buyers can feel comfortable with the idea that buying a new home now will provide them with years of lasting value.