The Boom Is Back
Sales in Vancouver have risen a dramatic 52% in the last month. There were 2514 sales last month, which is far higher than the 1689 sales recorded in August 2012. These numbers bode well for what started as a slow year in sales. It is the fourth consecutive month of year-over-year increase in sales after a 19-month tailspin.
The benchmark price for single detached homes, condos and townhouses kept relatively steady at $610,000, down 1.3 percent from August 2012, but up 2.3 percent from January of this year. Specifically, single detached homes (with outlying large purchases taken out) average at $923,700.
One thing to factor in compared to last year’s sales is the change of amortization which the government reduced to 25 years from 30, which knocked many first-time buyers out of the market.
Vancouver’s boom has brought up the national average and overall Canada is in what is considered ‘average levels’.
The slight increase in interest rates may have been what propelled some of the buyers who were waiting in the weeds to make a decision. I know a lot of buyers still have rate holds at under 3% and given the 5 year best rate is now in the mid 3’s, I think a lot of those buyers will be acting soon to buy and keep those lower payments.
Overall, it looks like things are as healthy as ever. As always, I am ready to help you find your dream home, or make the most of your current one, just give me a call and we’ll talk.