Vancouver’s Housing Market Showing Some Signs of Improvement
Vancouver Real Estate has been rather ‘tepid’ over the past few months, when compared to our more typical market volumes and prices of years past.
We are seeing some gradual signs of progress over the past month or so, we are seeing a couple of key metrics improve. Those are the sales to active listing ratio, and the decrease in year of year sales are slowing since last fall where we saw a balmy 27% decline in the number of homes sold.
Let’s examine the sales to active listing ratio – to come up with this figure, we take the number of homes sold in a month and divide it by the number of active listings for that same month. So if we examine March 2013, there were 2,347 sales and 15,460 active listings, we arrive at a sales to active listing ratio of 15.2%. Now statistically that puts us in a Buyer’s market. Just.
We consider a balanced market when that ratio sits between 15-20%. Below 15% shows a Buyers’s market, when it tips above 20% then we see a Seller’s market.
A word of caution – just because those number are improving in the sense that we are experiencing more of a balanced market, no one expects things to return to the red hot days that we all recall hearing about in the press. Cameron Muir, the BC Real Estate Association’s chief economist recently commented:
“I don’t think anyone expects to see prices accelerate any time soon like in the previous run-up,”
Professor Tsur Somerville of UBC suggested that we are going to see sluggish prices for the remainder of 2013, but stopped short of suggesting a Vancouver Real Estate price crash. He says:
Given where interest rates are, it would be silly to expect a large change in prices
Unless we have a major change in interest rates, or a meltdown of the financial markets, then the whole of Canada’s, if not the worlds could face turmoil.
Vancouver residential sales began weakening in the fall of 2011, buyers are waiting for further softening of prices, while sellers are holding out for better offers, or they are pulling their homes off the market if there is no motivating factor to sell, resulting in a sort of stalemate. You can read March 2013’s statistics here.
You can call me anytime to see how this news applies to you and your specific situation. My cell phone is always on. Adam Chahl +1 778 385 6141.