The most expensive real estate market in Canada levels out, benefitting Vancouver home buyers and sellers alike.

Vancouver Real Estate Market

The Vancouver real estate market has leveled off in the last four months, showing little change in sales and benchmark prices, which maintain a happy medium between the doldrums of 2008 and the skyrocketing numbers of 2009 and early 2010.  After the Vancouver real estate market endured a significant slump in 2008 due to the recession, the lead-up to the 2010 Winter Olympics expedited the Vancouver real estate market’s recovery, leading to record-breaking highs in sales and benchmark prices in April 2010.  Many predicted the market would level out, however, and the stability in the Vancouver real estate market the last four months demonstrates that these predictions are accurate.  Although the Vancouver real estate market remains by far the most expensive in Canada, with an average listing price of $679,381, benchmark price increases have slowed considerably and sales have shown a substantial decline since October 2009.

Vancouver Housing Prices and Sales

The Real Estate Board of Greater Vancouver (REBGV) reports that the MLSLink® Housing Price Index residential benchmark price has dropped to $579,349 since its high of $593,419 this past April, and decreased by just 0.2 percent since June.  Although across the board sales of detached, attached and apartment houses have declined dramatically since this time in 2009, they have also shown drastic increases since the fall of 2008.  According to the most recent report by the REBGV, sales of residential properties in Vancouver have dropped by 36.9 percent (to 2,337) since October 2009, yet still show a 71.3 percent improvement from October 2008.  October 2010 sales have only increased by 5.3 percent since September 2010 and sales in September only by 0.8 percent from the month before that, however, indicating a steadier Vancouver real estate market.

Vancouver Home Buyers and Sellers

For the Vancouver real estate market, this stabilization – which according to statistics from the Canadian Real Estate Association reflects the real estate market across Canada as a whole – could mean good news for both buyers and sellers.  As REBGV president Jake Moldowan explains, buyer demand in the closing months of the year “is in closer alignment with supply than we’ve seen for most of 2010.  Those buying today recognize that they still have a chance to enter the market with near-record low interest rates, while gradual reductions in inventory have eased downward pressure on prices.”  Sellers benefit from stable housing prices and fewer listings, which coupled with buyers taking advantage of low interest rates, creates the alignment between supply and demand that Moldowan affirms.  In September 2010 it took an average of three days less to sell a residential property than it did the month prior, which could reflect Vancouver home buyers and sellers taking advantage of this opportunity.

For more information on the Vancouver real estate market and new Vancouver listings, please contact experienced Vancouver realtor Jules Seaman.