Greater Vancouver’s resell houses industry has transferred into a “balanced” range where neither client nor home owner have any particular advantage in discussing a purchase, according to a Conference Board of Canada document published Tuesday.
As well, the report’s writer stated that he board’s metro Resale Index – November 2011, there is no longer a risk of a property “bubble” growing in the location.
“The threat of a bubble has largely dissipated,” senior economist Robin Wiebe said of Metro Vancouver. “But, really, there never was one.
“When prices rise, new supply is attracted to the market. And that’s what’s happened.”
According to the index, the normal cost in Vancouver was $774,000 in October, 2% more than September and 15.3% more than October 2010.
As well, the amount of listings stood at 60,600 in October on an annualized seasonally changed base, which was 2.5 % less than September but 14 % more than October 2010.
The amount of sales in October – also on an annualized seasonally changed base – were 30,792, up two % from September and 0.8 % from October 2010.
The Fraser Area was in a healthy industry, with rates up 9.6 % year-over-year to $494,000, but Victoria was considered a buyers’ industry, with rates down 7.1 % year-over-year to $490,000.
Wiebe said there is now adequate supply and reasonable demand in Greater Vancouver meaning that a healthy industry exists.
He said that rapid regular cost growth in May and June, driven largely by sales of expensive houses in exclusive neighbourhoods, is no longer a significant component of Greater Vancouver, with sales of the expensive houses having moved through the system.
“Price growth from year-to-year in the last two months has been pretty good, but at 14.5 per cent it’s a way down.”
He said with price increasing about 20 % year-over-year in May and June, a lot of people list their houses on the market, in hopes for cashing in.
“It changed the market balance a bit. Sales have cooled, listings have gone up. So the market balance has shifted. It’s not surprising.”
Regardless, Wiebe stated, the amount of sales are reasonable by traditional expectations.
Nationally, sales were up in 17 of 28 areas from September to October, and new listings increased in 16 of 28 areas.
A total of 23 of areas were considered balanced, while four were a buyers’ market. List shortages in Thunder Bay resulted as the only sellers’ market.
As well, average home values increased between September to October in 16 areas.
Source: Brian Morton, Vancouver Sun
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