What does ‘Buyers market’ mean to you?
Is it a market in which the buyer has lots of choice or gets a reasonable price?
..because they aren’t the same thing.
Now that prices are dropping from their record highs on Vancouver real estate, we’re seeing the term ‘buyers market’ bandied about in the media a lot. And with a huge number of places for sale and actual transactions falling to a 10 year low there’s lots of choice.
But prices are still near record highs!
Real estate is a slow illiquid market, it takes LOTS of time for trends to move through. Just take a look at the USA, there are some people thinking they’ve hit bottom in some markets after SIX YEARS of falling prices. Don’t expect deals within a few months, or even a few years.
Real estate marketers will use the term ‘buyers market’ a lot in the coming years, because they make money off transactions. If it’s not a good time to sell it must be a good time to buy right?
There is one nice thing happening with the shift in the local market though: the Vancouver Sun is starting to publish a bit more variety when it comes to RE market opinion:
Investors in stocks wouldn’t consider a drop in volume to be a buyer’s market in the absence of price changes. The adage that volume precedes price instructs investors to be patient. There’s no compelling reason for real estate buyers to act differently.
Bravo Vancouver Sun, Bravo.
The June news release from the REBGV has been released and it looks like the market has turned a corner.
As all of you regular readers here know, sales have plunged to a 10 year low.
The HPI benchmark price has also dropped from the previous month in some areas. Oddly enough it’s houses in the desirable west side and Richmond which have both dropped about 2% from May.
Best Place on Meth summarizes the total changes for all areas:
Summary of June HPI:
I was expecting no change for June and declines to start next month so this is a bit of a bonus.
Yes the hot summer market has turned out to be anything but. As prices drop a few percentage points from their all time highs some are calling this a ‘buyers market‘.
Meanwhile at least one local realtor has sold his own house and says it’s time to cash out.
Hey all, This is my first submission, mostly I lurk in the forum but read this site daily.
I just want to send out a big thank you to everyone who shares otherwise unavailable Vancouver housing market data here.
Watching the stats roll in day after day has been fascinating.
It’s amazing to watch the market change day by day, and the aggregate data provides an even clearer picture.
First of all of course there’s Paulb who’s been providing daily numbers for a long while. It’s thanks to Paul that we see the daily number of new listings, sold properties and have a total inventory count. Pauls website is here.
Then there’s VHB, who consistently posts analysis tracking the numbers through the month. Here’s his most recent post.
We have a new commenter going by the name of HFHC who has been providing other great stats including listing data for the entire lower mainland and a break down of sales by category.
Then there’s Inventory, who’s provided excellent number breakdowns for specific markets as seen in yesterdays post about the low June sales numbers.
And of course everyone else who provides such amazing data, analysis and comments. I started listing your handles, but the list went on and on and I knew I’d leave out some the best so I’m opting to just send out a big general thanks to ALL of you, you’re amazing.
It looks like the number of detached home sales in a number of lower mainland areas are coming in very low for June this year.
It’s useful to look at what sales looked like in June 2012 compared with the last many years.
Fortunately Inventory posted a bunch of month-end stats showing exactly that this weekend.
Here’s Richmond, which saw an all-time low number of sales of detached homes:
Continue reading Detached home sales collapse in June
How’s this for an opener:
While the country’s new mortgage rules are meant to cool the market, eventually making housing more affordable, they’ve put home ownership out of reach for many prospective buyers.
Uh-huh. And what if the problem was that we put home ownership in reach of too many prospective buyers?
Those who don’t have a down payment of 20 per cent or more will be limited to a maximum amortization period of 25 years. Since 40 per cent of new mortgages last year were for 26 to 30 years, according to a survey from the Canadian Association of Accredited Mortgage Professionals, real-estate neophytes might feel the change most dramatically.
WHoa! Did they just say 40 percent of new mortgages were over 25 year amorts?
Another new rule announced by Mr. Flaherty sets the maximum gross debt-service ratio – the percentage of household income being used to pay for housing – at 39 per cent so buyers will be less likely to take on mortgages that are too big and could leave them floundering if rates increase.
That’s the one that Andrea Benton, a 37-year-old entrepreneur in North Vancouver, B.C., said hits her family of four hardest.
“It means my total family income would have to be an exorbitant amount to afford an $800,000 house,” she said.
You mean you’re expected to have a high income to afford an $800,000 house?!?
Read all the comedy in the full article here.