All the misleading headlines in the news papers and social media sites want you to believe the market is done and the sky is falling. Here are the real stats straight from the source...
Sales of detached properties in August 2016 reached 715, a decrease of 44.6 per cent from the 1,290 detached sales recorded in August 2015. The benchmark price for detached properties increased 35.8 per cent from August 2015 to $1,577,300. This represents a 4.2 per cent increase over the last three months.
Sales of apartment properties reached 1,343 in August 2016, a decrease of 10.1 per cent compared to the 1,494 sales in August 2015.The benchmark price of an apartment property increased 26.9 per cent from August 2015 to $514,300. This represents a 6.1 per cent increase over the last three months.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark, while home prices often experience upward pressure when it reaches the 20 to 22 per cent range in a particular community for a sustained period.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $933,100. This represents a 31.4 per cent increase compared to August 2015 and a 4.9 per cent increase over the last three months.
Yes, there have been less sales in August and the foreign buyers tax did what it was meant to do...slow the market.
But there are 2 pillars that drive the market that have not changed...
1. Interest rates, are at historical lows. 4 year fixed rates are as low as 2.39% and with a struggling economy and dollar the downward pressure for lower interest rates is very evident.
2. Low inventory, the over all inventory is low in the real estate market. The market is not over saturated with many listing.
The general perception of the real estate market is "things are slow and prices are falling". Call us to help you use this knowledge, we can use our experience and know how to either buy or sell your home or investment property. These next few months will be the best time to make a move before the spring market in 2017.
Check out the stats...