November 2012 Market Update

     
 
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November 2012

 
 

Macdonald Realty November 2012 Market Update

It's been a relatively slow summer and fall housing market for most areas of the province. That being said,

prices have remained stable through the balance of 2012. So our forecast from December 2011 was half

right: our survey of managers at that time predicted flat prices and a similar number of sales. We were right

on the first forecast and wrong on the second.

 

Much of the blame for the decrease in housing sales can go to the federal government, which moved to

tighten mortgage rules in June of this year. Historically, tightening of this type has led to a slower housing

market for the following 3-6 month period, followed by a return to a normal market after the adjustment. That

means that we expect both prices and sales to remain flat for the balance of 2012.

 

For those that are worried (or excited) about a drop in prices, Macdonald Realty recently had its bi-annual

real estate conference where TD Bank Chief Economist Craig Alexander presented that he sees no

evidence of a looming external shock on the Canadian market to justify these concerns. Interest rates and

unemployment will need to rise dramatically in order to precipitate a significant fall in prices and there is no

reason to believe either of those will occur in the near future. In fact, Mark Carney, the Governor of the Bank

of Canada, has recently had to pull back from his threats to raise interest rates due to the fragile economic

situation, while it looks as though the US economy is finally on a slow but steady recovery from the Great

Recession.

 

To help you keep tabs on what's happening in your market, Macdonald Realty has recently introduced

Housing Market Infographics that will give you a snapshot of various real estate markets throughout British

Columbia. Click here to take a look:


https://www.facebook.com/media/set/?set=a.10151213525344609.472675.350405189608&type=3

 

The Real Estate Board of Greater Vancouver Statistics for October 2012

Housing market sees slight changes in October.

 

The Greater Vancouver housing market saw a slight increase in the number of home sales, a slight

reduction in the number of listings, and a slight decrease in home prices in October compared to the

summer months. With those changes, the sales-to-active-listings ratio increased to 11 per cent in October

from 8 per cent in September.


The Real Estate Board of Greater Vancouver (REBGV) reported 1,931 residential property sales of

detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) in October,

a 16.7 per cent decline compared to the 2,317 sales in October 2011 and a 27.4 per cent increase

compared to the 1,516 home sales in September 2012.


October sales were 28.5 per cent below the 10-year October sales average of 2,700.


“Buyer demand increased slightly in October compared to the previous few months,” Sandra Wyant,

REBGV president-elect said. “Overall conditions in today’s market remain in favour of buyers, with low

interest rates, more choice, and less time pressure in terms of decision-making. This translates into a

calmer atmosphere for those looking to buy a home and it places more onus on sellers to ensure their

homes are priced to compete in today’s marketplace.”


New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,323 in

October. This represents a 1.2 per cent decline compared to October 2011 when 4,374 properties were

listed for sale on the MLS® and an 18.8 per cent decline compared to the 5,321 new listings in September

2012.


At 17,370, the total number of residential property listings on the MLS® increased 12 per cent from this

time last year and declined 5.3 per cent compared to September 2012.


Since reaching a peak of $625,100 in May, the MLS Home Price Index® (MLS HPI®) composite benchmark

price for all residential properties in Greater Vancouver declined 3.4 per cent to $603,800 in October. This

represents a 0.8 per cent decline compared to last year.


“There’ve been modest price changes since they peaked in the spring. The largest reductions have

occurred in the areas and property types that experienced the biggest price increases over the last few

years,” Wyant said.


Since hitting a record high in April, the benchmark price of a detached home on the Westside of Vancouver

has declined 8.6 per cent while detached homes in Richmond and West Vancouver have seen declines

of 6 per cent over the same time period.


Sales of detached properties in Greater Vancouver reached 790 in October, a decrease of 18.9 per cent

from the 974 detached sales recorded in October 2011, and a 19.1 per cent decrease from the 976 units

sold in October 2010. Since reaching a peak in May, the benchmark price for a detached property in Greater

Vancouver has declined 4.1 per cent to $927,500.


Sales of apartment properties reached 803 in October 2012, a 16.2 per cent decrease compared to the

958 sales in October 2011, and a decrease of 18.4 per cent compared to the 984 sales in October 2010.

Since reaching a peak in May, the benchmark price for an apartment property in Greater Vancouver has

declined 2.9 per cent to $368,800.


Attached property sales in October 2012 totalled 338, an 11.5 per cent decrease compared to the 382

sales in October 2011, and a 10.3 per cent decrease from the 377 attached properties sold in October

2010. Since reaching a peak in April, the benchmark price for an attached property in Greater Vancouver

has declined 2.9 per cent to $457,700.


 
 
 
*This communication is not intended to cause or induce breach of an existing agency agreement.

*Although this information has been received from sources deemed reliable, we assume no responsibility for its accuracy, and without offering advice, make this submission to prior sale or lease, change in price or terms, and withdrawal without notice.
 
 
     
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The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.