The lower mainland Real Estate market is in an equilibrium with sales surging 11.9 percent compared to June 2012 for single family detached homes, condos and townhomes. This increase is the greatest increase in the last 2 years. In May, residential sales volume climbed a mere 1 per cent in Greater Vancouver, following a 19-month stretch of year-over-year declines in the number of properties sold.
Last month, 2,642 Greater Vancouver properties changed hands on the Multiple Listing Service, compared with 2,362 sales in June of 2012. This increase is still 22 percent lower than the 10 year average for June.
The prices are reported to have dropped marginally by 3 percent as reported by the Greater Vancouver Real Estate Board.
The Real Estate market has shown 4 straight months of growth albeit we are coming from a really slow and lacklustre pace. It appears that the buyers have finally started to make their move after holding out for months and months. In any given market and at any stage, sellers want the most money for their property and the buyers want to offer the least amount possible. In the last 6 months, it appeared that the buyers were holding out and were not making their move hoping for the prices to bottom out even more.
After seeing that the prices have not been dropping significantly, it seems like the buyers are relenting and finally locking in the low interest rates and making deals.
Sellers too were waiting it out and hoping the market conditions would improve. However, if the seller is going to be buying again in the same market conditions then the market condition should not matter as such.
Traditionally in the lower mainland, prices rarely seem to come down. The slowness in the market is really only the fact that it takes a bit longer for the properties to sell.
The Canadian Real Estate Market does follow the US market somewhat and with the unprecedented recovery being seen in some parts of the USA, it is natural to have an upbeat tick in our own market.