Market update for lofts and Condos August 2009
"VANCOUVER, B.C. - September 2, 2009 - The number of home sales in Greater Vancouver increased significantly last month compared to August 2008 and moved closer in line with the most active summer months experienced between 2003 and 2007." - RBGV
The Vancouver real estate market is hot! August 2009 was the second busiest August for Vancouver home sales ever. July 2009 was the highest producing July in Vancouver history (4114 home sales), and June produced the second most home sales for that month.
My thoughts: Many buyers are now acting at the same time, and finally purchasing. The instability of the North American economy between October 2008 until March 2009 resulted in plenty of uncertainty in the overall economy which reflected in very slow home sales during those months. Many Vancouver condo and loft buyers held off from buying between those months, and now have jumped in to take advantage of good interest rates, lower prices, and the past built up inventory - but that inventory is now sold out! The market activity for Downtown lofts and condos was extremely busy for all summer months of 2009. Many units sold within 10 days and received multiple offers selling either at asking prices or over. In certain buildings for entry level pre $450,000 units, some prices have returned to their peak prices from 2008.
The average Downtown buyer is more conscious of their purchasing decisions compared to the "fast and crazy" times in the peak of our market - Early 2008. People are paying closer attention to details, past peak prices, floor plans, and now setting barriers on their bidding prices.
What about the fall of 2009? Inventory is slightly creeping forward with more listings arriving at higher prices. The buyer "frenzy" in Downtown Vancouver should slow as buyers will begin to have more choices, and can make even more conscious choices. The bidding wars should slow as sellers will now list thier properties at higher prices after a robust summer. Sellers will have to price accordingly as buyers are more intelligent and want quality products.
Who is buying? Majority of the activity are primary residence buyers. Home-flippers, investors, and speculators seem to have been weeded out in the slow market. This should give great confidence for people planning to make a move this next coming fall.