GREATER (METRO) VANCOUVER
JUL 2009 QTLY UPPER TIER REAL ESTATE UPDATE
THE IMMEDIATE FUTURE UNFOLDS
With half of 2009 under our belts and a strong surge locally during May and June, we are seeing a healthier and more confident market emerging in Greater Vancouver. Our recent interest rate discussion was a call to action to many who had been sitting on the sidelines and rewarded those who obtained financing pre-approvals and rate guarantees. So, announcements by the majority of lenders (banks, credit unions and trust companies) in the early days of June that all were increasing their mortgage interest rates – anything from 0.15% to 0.35% depending on the “lock in” term involved – had no negative effect on them. Further gradual increases may come over the next few weeks, so, if you have not obtained a “rate guarantee”, do so – remember, it costs nothing other than your time and does not commit you to having to draw down any mortgage. Some might call it “free insurance”.
We believe that the most significant occurrence in the past few months (notably during June) is the shrinking of supply (i.e. inventory) of homes for sale. Simple refresher – if demand stays healthy (or grows) and supply diminishes – prices will increase. We are seeing some of that with a steady rise in the average prices. For example the YTD average prices for detached properties in Vancouver show this trend in the last few months of this year – [Feb $749k; Mar $773k; Apr $825k and May $824k.] Yes, granted that certainly, fewer units are selling than this time last year but they are changing hands at an increasing price level. Prediction: this summer will be relatively more active (sales wise) than the average summer. We are seeing a number of examples of the unsuccessful seller of mid to latter ’08 re-listing this year and meeting with success.
Now to some facts regarding the upper end Vancouver market ’09 vs ’08.
Detached homes sold [$2MM and above] 2008 – 499 listings sold vs 2009 – 382 sold (a drop of 23%). Highest sale $11,5MM (’09) vs $10,5MM (’08). This property (on Celtic Avenue in Southlands, sold in June ’09 after 386 days on the market, listed at $16.8MM. 8 bed/8 bth a 14,056 sq ft home on over 3 acres – swimming pools, tennis court, stables, waterfalls and a private lake. Truly a home of provenance.
Attached homes, those best described as townhomes and duplexes [$1MM and above] 2008 – 184 listings sold vs 2009 – 107 sold (a drop of 42%). Highest sale $3.85MM (’09) vs $4.3MM (’08). This property (on Bellevue Avenue in Dundarave) is a highly desirable 2 bed/3 bth waterfront ½ duplex designed by Russell Hollingsworth.
Apartments [$1MM and above] 2008 – 411 listings vs 2009 – 262 sold (a drop of 36%). Highest sale was $6.5MM (’09) vs $5.1MM (’08). Two tied at this price – one 25th floor in the Columbus (Marinaside Crescent) and the other 28th floor in the Shaw Tower (W. Cordova St) – both impressive view dwellings, the first (6bd/7 bth) at 6330 sq ft comprising 3 storeys and the second (4 bd/5 bth) at 4007 sq ft – 4 ensuites on Coal Harbour!
Again, visit the website to see the new developments. We continue our commitment to keep you up to date on Vancouver’s … www.HomesOfProvenance.com – the “go to” site for Upper Tier Real Estate analysis and jumping off point for market listing information.
To join the group getting the e-mail version of this “update” – send a request now to info@HomesOfProvenance.com and you’ll be assured receipt; phone us at (604) 626-2526 or visit www.HomesOfProvenance.com