HOUSING TRENDS AND AFFORDABILITY

November 28, 2009

RBC Economics Research - November, 2009.

Affordability improvements halt in third quarter

“The string of significant improvements in housing affordability in Canada finally came to an end in the third quarter. RBC’s affordability measures rose at the national level for the first time in six quarters for all housing types: by 0.5 percentage points to 27.6% for a standard condominium; by 0.7 percentage points to 32.3% for a standard townhouse; Read more

Richmond Housing Report - October, 2009

November 24, 2009

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

Housing Type Active Listings October Sales Av. 3 mth No. Months Average Price
Detached 500 185 182 2.75 $875,000
Townhouse 285 137 137 2.08 $460,000
Condominiums 620 222 212 2.92 $350,000

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The Richmond total home sale for October, 2009 at 544 units kept up relatively well with the previous month sale of 570 homes. The supply of detached homes and townhomes continued to decline moderately, while condo listings grew slightly.

The total active listings at the end of October at 1,405 units were were just marginally lower than the previous month’s listings of 1,435 units. The supply / demand (list to sale) ratio remained tight around 2.65 months. The past 9 months re-bounce in home sales, and lack of new inventory coming onto the market, helped to pushed home prices higher.

The market continued to be very active with home buyers ready to commit when they come across homes meeting their requirements. Sales activities remain strong, and many home buyers are looking out for new listings and the right homes to buy.

Will current bullish market continue?

The fall season and the lack of inventory is expected to dampen sales. While seasonal reduction in sales for the autumn and winter months can be expected, home prices are expected to remain at current level.

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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Rapid rebound fuels fears of housing bubble

November 17, 2009

 Below is an article by Garry Marr, Financial Post - published: Monday, November 16, 2009:

Canadian existing home prices are now rising at a pace not seen in 20 years, fueling talk that a bubble may be forming in the market.

The average price of a home sold last month was $341,079, a 20.7% increase from a year ago, the Ottawa-based Canadian Real Estate Association said Monday. Sales also continued to climb with 42,288 units trading hands, a 41% jump from October, 2008. Read more

Real estate lost decade?

November 11, 2009

Any prudent home owner and investor should take note of a major report this week written  by TD Bank economists Grant Bishop and Derek Burleton.

“According to them, the country’s growth rate will crash to just 1.6% between 2010 and 2012, and just edge up to 2.1% all the way through to 2019. This will be the result of factors I’ve already mentioned, namely a rapidly aging population and a massive debt overhang for both families and governments”.

Read more

Real estate recovery will be weak in Canada due to limp demand

November 11, 2009

By THE CANADIAN PRESS, November 11, 2009.

Canada’s real estate market didn’t fall as hard or fast as in the U.S., but some spots did suffer steep losses and a recovery will be slow as buyers worry about another potential economic dip, a new report suggests.

Total losses in value across Canada will average between 10 to 20 per cent compared to the highs of two years ago, according to the study by PricewaterhouseCoopers and the Urban Land Institute.

But some areas saw a much deeper drop. The report released Wednesday predicts a slow recovery to begin by the end of next year.

Read the full article here.

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Housing Market Recovering!

November 4, 2009

Metro Vancouver housing market regained most of the lost ground over the past 7 months.

“While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008,” Scott Russell, Real Estate Board of Greater Vancouver (REBGV) president said. “We’re coming off several months of unseasonably high sales levels, which has allowed for a gradual increase in home values this year,”

The recovery in home prices can be viewed here as shown on the Real Estate Board of Greater Vancouver’s October price graph (click on the graph for larger picture). Read more

High sales levels spur rise in home values

November 3, 2009

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

VANCOUVER, B.C. – November 3, 2009 – Strong demand has led to a steady rise in Greater Vancouver home prices compared to last year.

Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.8 per cent to $553,702 from $518,668 in October 2008.

“While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008,” Scott Russell, Real Estate Board of Greater Vancouver (REBGV) president said. Read more