Greater Vancouver Real Estate Market – May, 2009

June 6, 2009

Home sales in May were pretty hot in the Greater Vancouver area, and the rush to buy had resulted in many well priced new listings receiving multiple offers. In Richmond, the months of inventory for detached homes, townhomes and condos fell from more than 10 months in February to 4.32, 2.89 and 3.70 respectively in May. The months of inventory for detached homes, townhomes and condos in Richmond are now tipping from a balanced market to a seller’s market.

vancouver5.jpgLow mortgage rates boost sales

Compared with interest rates a year ago, mortgage rates came down considerably from the 5.50% level to just over 4.00% now. This helped to reduce the monthly mortgage payment of a homebuyer by as much as 20%. The price correction over the past 12 months, combined with the lower interest cost helped to fuel the current rush to buy.

Housing Analysis. produced a great illustration on sales activities since 2005. Based on the past years activities, the sales trend from now on will continue to decline. Home prices will probably remain at current level, and months of inventory will likely increase from current levels.

Heading for a more balanced market?

A steady supply of new listings, and reduced sales over the next few months will help to bring balance to the market. Current townhouse market in Richmond has limited supply of homes. Buyer demand may help push up prices for townhomes, unless more homes are available or sales activities dropped significantly.  There are good supply of million dollar detached homes newer condos. Recent strong sales had resulted in many spokepersons in the housing industry revising their forcastes – a less severe drop in home prices for 2009.

For current housing market info, follow this link for the monthly market update for Greater Vancouver, and click this link for Richmond’s housing market up-date.

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