Recent release from the BC Real Estate Association:
The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 23 per cent to 7,722 units in June compared to the same month last year. On a seasonally adjusted basis, MLS® residential unit sales in the province declined 5 per cent in June from May 2010. The average MLS® residential price climbed 8 per cent to $499,908 in June compared to the same month last year.
“Market conditions have shifted from balanced conditions at the start of the year to a buyers’ market this summer,” said Cameron Muir, BCREA Chief Economist. In June, there was 9.3 months of supply on the market given current sales activity, up from 5.6 months in January 2010. “Tighter credit conditions for homes with secondary suites and low equity home buyers have moderated consumer demand,” added Muir.
Year-to-date, BC residential sales dollar volume increased 31 per cent to $21.4 billion, compared to the same period last year. Residential unit sales rose 17 per cent to 42,343 year-to-date, while the average MLS® residential price climbed 13 per cent to $504,281 over the same period.
The report was issued July 15, 2010. For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2010-06.pdf.
I believe that markets are cyclical…what goes up must come at least part way down!
We have been having booms and busts since the beginning of time…nothing new.
What we have to do is keep positive and realize that this is a time to look for opportunities as the market will rebound and maybe sooner than anyone predicts!
Don’t run scared of the real estate market, we’re not. With over 30 years experience we’ve seen it all before! Call or email your local success story: www.downtownsuites.com.
Why are higher end rental suites in Vancouver bringing in fewer people per viewing?
At Downtown Suites we offer many condos and apartments in today’s rental market.
We have seen that the higher end suites ranging from $2000 per month and more are bringing in fewer people per viewing. What contributes to the lower number of viewers coming to the showings of these suites?
One of the factors is the new suites rapidly coming on the Vancouver rental market left, right and center. We have the Shangri-La,The Ritz, H&H, The Grace, The George, The Sapphire, and many others that are completing or have been completed. Suites there are often sitting empty because there is an overwhelming number of suites available in Vancouver with not enough people able to or wanting to rent.
This has a trickle effect on the rest of the rental market because prices are going down.
If these new higher-end suites are sitting empty, the owners must lower their rent.
This in turn brings all the other rental listings down, because if you have a suite that is for $2500 in a decent place, then see that the Shangri-La has one of their listing at $2500, it is heavy competition for the other suite to try and match the Shangri-La. So in response to that, the owner would have to lower their rent to be able to rent out the suite and not lose any money. Thus this is a domino effect on the rest of the rental market.
Furthermore people unsuccessfully trying to sell their property, are now putting their suites up for rent. This is contributing to the massive availability in the current rental market.
Nonetheless, all of the suites we have shown this month have seen a positive response, and great deal of interest.It is true that if rental suites are priced right, the suitable renter is not far behind.
