Worst may be over for the housing market

July 10, 2009

A  Financial Post report by Garry Marr dated July 09, 2009:

New home construction rose for a second straight month in June, in what analysts say is another sign that the worst may be over for the Canadian housing market.

Canada Mortgage and Housing Corp. said Thursday there were 140,700 new homes constructed in June on a seasonally adjusted annualized basis. Construction was up almost 8% from the 130,300 May figure.

“There are some pretty good signs that we are starting to see in the housing market,” said Bob Dugan, chief economist with CMHC. “We’ve seen it for quite a few months on the existing homes side.” Read more

Housing prices to drop 2 per cent in 2009: Royal LePage

July 8, 2009

Below is a CTV.ca News Staff report on July 7, 2009:

A new forecast from a major Canadian real estate company predicts that the national housing market is stabilizing, after seeing a “remarkable turnaround” in the second quarter of 2009.

Royal LePage predicts that the selling price of the average house will drop by only two per cent this year — an improvement over the real estate company’s prior forecast from six months ago that predicted a three per cent drop. Read more

Richmond Housing Report - List Vs Sold June, 2009

July 8, 2009

Richmond Housing Report - List Vs Sold June, 2009
Source: RealtyLink Online

Housing Type Active Listings June Sales Av. 3 mth No. Months Average Price
Detached 610 204 170 3.59 $775,000
Townhouse 330 155 138 2.39 $425,000
Condominiums 600 225 196 3.06 $320,000

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The Richmond total home sales for June, 2009 picked up further with total sales improvement of 18% to 584 homes compared to the previous month sale of 497 homes. On a year-over-year basis, last month’s sales showed an increase of 69% over the same month sale of 345 homes in 2008.

The total active listings at the end of June dropped slightly from 1,550 the previous month to 1,540 units. The improvement in sales helped to improve the supply / demand (list to sale) ratio further from 3.68 to around 3.06 months. The past 5 months re-bounce in home sales, and lack of new inventory coming onto the market, is now creating another round of buying resulting in some home prices regaining in prices. At current level, the market is a seller’s market - sellers are in control.

Will current bullish market continue?

Sales may follow previous years decline in activities after the spring surge in sales each year. New inventory is not coming onto the market fast enough to fill the void left by homes depleted from the market. The question is will home sales slow down from here on?

Until the market re-balance with more inventory, sales will drop off like previous years as shown here.

For now home sellers are holding on to their selling prices, and many homes were found to be selling at higher prices than the past 3 months. The Richmond housing market is presently very active, and there are now more buyers willing to commit to buy when they find the homes they like.

You can follow the monthly housing market up-date for Greater Vancouver here. Use this link to view homes available for sale in Richmond.

For more information on Richmond real estate, you are welcome to contact me at 604-721-4817 or email me.

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Market conditions drive strong June housing sales

July 5, 2009

Real Estate Board of Greater Vancouver Housing Report - read full report here.

FOR IMMEDIATE RELEASE

VANCOUVER, B.C. – July 3, 2009 – The combination of low interest rates and more affordable pricing helped propel Greater Vancouver home sale numbers to the second all-time highest total for the month of June.

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties increased 75.6 per cent in June 2009 to 4,259, from the 2,425 sales recorded in June 2008. The figure is just short of the record-breaking 4,333 sales which occurred in June 2005. Read more

June boom for Lower Mainland real estate markets

July 5, 2009

Below is an article posted by Derrick Penner, Vancouver Sun - July 3, 2009:

Last year’s slide in prices, current low interest rates contribute to uptick in sales

Lower Mainland real estate markets saw big gains in June sales with the Metro Vancouver real estate board posting its second busiest and the Fraser Valley its fourth most active June on record.It was a factor of the slide in real estate prices last year and current low interest rates that were enough to offset the negative influences of higher unemployment and a contracting economy, regional economist Carol Frketich of Canada Mortgage and Housing Corp. said in an interview. Read more

What’s next after the spring surge in housing activities?

July 2, 2009

The spring surge in housing activities lifted home prices and reversed the downward price decline for detached homes, townhomes and condos. The housing price reversal over the past 3 months was clearly illustrated by Brian Ripley’s housing price chart.

The surge in sale over the past 3 months helped to reverse the downward slide in home prices. In fact, the strong sales had resulted in home prices gaining ground and recovered some of the losses over the preceding months. The supply of new listings was not keeping pace with the sales, resulting in the Richmond housing market tipping back in favour of home sellers. Read more