Home prices are down only marginally, on average 5.9%
A Balanced Market
Other
Even with sales well off their ‘frenzied’ multi-year highs, prices, since peaking last May, are down only marginally, on average -5.9% (no worse than a bad week in the stock market).
Patient Sellers and Persistent Buyers are the new realities of today’s market.
DOM (days on the market) is increasing for sellers with some choosing to hold-off on the sale or remove their homes from the market until things improve. The resulting ‘squeeze’ in the supply of listings is helping keep prices buoyant while creating a challenging environment for buyers in certain categories/areas.
What’s ahead for 2013?
Improving economies in the US. & China should bolster our resource driven economy helping the employment picture & consumer confidence. The dreaded HST is gone as of April 1 which will reduce the cost of buying & selling while improving the prospects for an already active new home market.
Interest rates are likely to remain at record low levels for the foreseeable future (under 3% for 5 year term!) while we could see the Bank of Canada loosen lending requirements in the second half in an effort to re-ignite a market that they have successfully stifled.
The provinces annual net population increase is 43,000 while only 25,000 new homes are slated to be built this year. Then there’s the upcoming provincial election…?
In summary, prices are likely to remain flat this year, giving investors, first-time and move-up buyers a great opportunity to make the right move.
Looking at the big picture…Vancouver remains one of the best places to live in the world. Now, more than ever, Vancouver offers good value when compared with other world class cities.