Vancouver Home Sales Prompt CREA to Update 2011 & 2012 Forecast
Posted by Kerri Demski - PREC on
The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity (2011 & 2012) due to the unexpected Q1 surge of activity in Greater Vancouver. National sales activity is now expected to reach 441,100 units in 2011, a decline of 1.3 per cent from 2010. This is a slight improvement from the 1.6 per cent decline forecast by CREA in February.
“The extent to which high priced sales activity in Vancouver will pitch up the average price locally, for British Columbia and nationally will likely diminish in the next couple of months in line with a seasonal increase in national activity,” Klump added. “That said, foreign investment in Vancouver residential real estate is showing no signs of slowing, so it seems likely to remain a…
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In contrast
to the near record pace witnessed at the beginning of this year, the Vancouver
real estate market seems to be normalizing. With increased inflation and rising
interest rates, sales are slowing particularitly in the entry level condo market; however
prices are still on the rise and the market continues to be very active.
First-time buyers contribute to strong upward momentum in
residential housing markets across the country. This demographic typically
accounts for 40-60% of the homes purchased in any given real estate market.
However, recent changes to financing criteria that came into effect in March, didn’t
really create the anticipated frenzy in activity. Most rookie home buyers
remain practical and are buying within their means – the message is getting across
while having a negligible effect on demand.
Vancouver is in the midst of a strong spring in real estate as home buyers continue to enter the housing market at near record levels. There have been 4,080 sales in March, 2011 which represents a 31.7% increase compared to February, 2011 and an increase of 30.1% compared to March, 2010. The all-time sales record for March was in 2004 when 4,371 real estate transactions occurred.
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In Vancouver, looking at detached properties over the
3 million dollar mark, the community with the highest level of activity is Shaughnessy. In
February there were 18 homes sold between $3,045,000 and $7,850,000. The total
amount of real estate sold was just under 77 million; the average price being $4,277,000.
Three of these homes sold in multiple offer…