Before we delve into the impressive increase in market activity from 2012 to 2013, it’s important to note that 2012 was a very slow year based on 10-year averages in Greater Vancouver, and as such the amount of increased activity we’ve experienced since last year is artificially inflated as a result. In reality, this growth represents more of a return to norm, than it does some fantastic increase in activity that some may use to mislead the public.
Home sales in Greater Vancouver experienced a decrease in 2012 when lending regulations were tightened in an attempt to avoid any form of collapse like we recently witnessed in the United States. Amortization periods changed from 30 year to 25 years, which significantly decreased buyer affordability, and additional tightening of regulations has left many buyers unable to secure lending.
Now that we have that out of the way, we have jump into the impressive figure that represents an almost 40% increase in Real Estate activity experienced in North Vancouver and Vancouver as a whole. Last month, 2661 homes were sold compare to 1931 only a year ago – an impressive jump no matter how you look at it.
Compared to the month previous, activity increased 7.2% which shows a healthy recovery from slower market conditions as many homebuyers have decided to enter the marketplace after waiting for prices to fall.
This sort of activity has helped maintain the current marketplace conditions of a “balanced market” in Greater Vancouver. For those who are unfamiliar with what a balanced market represents, it is in essence a comparison of listings and sales to determine whether or not Sellers or Buyers currently enjoy the advantage in the marketplace. However, during a balanced market neither side has an advantage over the other. As such clients are advised to seek win-win scenarios when looking to buy or sell in North Vancouver.
The benchmark price for homes in Greater Vancouver currently sits at $600,700 and represents a 0.5% decrease from last year, despite increased activity. This decline is fairly insignificant, but it’s important to have an understanding of what the market is trending towards whether you are thinking of buying or selling, and this way you can make a well-informed decision based on market conditions.
There is a correlation between balanced markets and minimal price fluctuations, and as such it’s no surprise that we see relatively stable market prices in conjunction with current market conditions.
So, make sure you have access to all of the information before you look at a catchy headline in the newspaper or online that exaggerates market conditions in order to gain your readership and page views. The facts are that the Greater Vancouver market remains balanced and that we’re on par with 10-year averages – but announcing current conditions are status quo isn’t quite as eye-catching.
Helping clients looking to buy and sell North Vancouver Real Estate is my career and my privaledge. Calling the North Shore of Vancouver home is something I'm proud of, and I feel responsible to help ensure residents and agents are not being mislead by statistics and headlines.