Prices approaching 2008 peak!

September 9, 2009

Greater Vancouver sales increased 119% this August compared to August 2008!
We are at the active summer levels seen between 2003-2007 and only 1.1% away from reaching the benchmark price peak of August 2008.

If activity remains at this level, it is likely that we will see prices surpass this level by the time you receive my next market update. Sellers are taking advantage of this market with NEW listing inventory increasing 5% vs. August 2008. However, supply is still low as total listings remain 33% lower than August 2008.

More Buyers chasing fewer listings has resulted in a bit of a bonanza for Sellers.
The market should remain busy as long as interest rates remain low and Economists continue to talk about signs of recovery. While the market tries to find a balance, continued strengthening right up to the 2010 Winter Olympics is likely.

But it's not all good news as the government, striving to balance their books, is reaching deeper into the pockets of Buyers & Sellers with the proposal of a new tax. The HST (Harmonized Sales Tax) to be implemented July 1, 2010, could add an additional 7% in taxes to the cost of a NEW home for Buyers. Developers may shy away from starting new projects (especially Downtown) until this tax grab is finalized. If they do, new home inventories may tighten over the next few years.

The silver lining (for Sellers) to this tax is that we should experience a rally in the market just prior to its implementation. Early spring should see many Buyers contacting their REALTORS in hopes of beating the tax.

What about those that have already bought a pre-sale in a new development with completion after July 2010? The government has not hammered out the details on this yet so stay posted.

Full report for specific neighbourhoods, please click link below:

Sales/ Listings Statistics and Graphs for all areas.

All information is approximate

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