It's Official! The BC Real estate Market turns 'stable'.

So it seems that the market in BC is starting to stabilise and show signs of life according to the BC Real Estate Association’s third quarter forecast for 2009. According to Cameron Muir, the Association’s chief economist, “robust housing demand is a strong signal that the economy is coming out of the recession, with a recovery in the broader economy expected to develop over the next three quarters”. Muir has based this analysis on multiple listing service numbers forecasting a 15% increase in sales this year (79,400), up from last year (68,923).

Prices are still below last year in Metro Vancouver and Victoria, about 4% from 2008, and on Vancouver Island they are down about 3% over last year.  In urban areas the markets have rebounded quite sharply, whereas the more rural, interior markets are seeing a gradual trend to a more balanced market between supply and demand.

This seems to be a trend that is Canada wide according to the Canadian Real Estate Association (CREA) who in a revised forecast predicts that Canadian resale home prices are likely to rise, not fall, and that sales will nearly match those of last year due to strong showings in the second and third quarters. CREA calls the difference between the market at the beginning of the year and now as being “night and day”. Doug Porter, deputy chief economist at BMO capital markets puts it like this: “The recovery in Canadian housing, I think, was beyond the imagination of even the most strident optimist. It is truly remarkable….”

It seems from data over the last six months that buyers are venturing back into the market, with low interest rates and the signs of a fledgling economic recovery helping the process. There is also a change in the US market with the S&P/Case-Shiller home-price index which monitors 20 US Metropolitan areas showing a gain in 18 cities during June, with Detroit and Las Vegas being the only declines.

This is some good news for sellers. With a more stable and balanced market this means inventory is being sold, often listings that have been on the market for considerable time. Once this older inventory is sold, and the general feeling of confidence returns, the opportunities for buyers to get great deals will begin to diminish. There are still bargains to be had out there, and in our market on Pender this is still the case, but the real ‘screaming deals’ are starting to disappear. For potential real estate investors with long term goals time is definitely running out, and as one client noted to me this morning as his offer was accepted on a great priced piece of Pender Waterfront; “nowadays, if you snooze you lose.”

I couldn’t agree more, and my message on this has been consistent. Time is running out to get a Great Deal but if you do, Buy and Hold! You’ll be glad you did.

Source: Times Colonist August 28,2009