Happy (belated) Canada Day! I hope you are all enjoying this gorgeous summer weather - don't forget your sunscreen.
Looking back at the month of June in Vancouver real estate, we are seeing much of the same trend continuing: an increase in sales volume compared to the same time last year, stable pricing and overall less inventory on the market compared to last year.
May is traditionally the busiest month for real estate in Greater Vancouver, so it's no surprise that sales volume in June 2013 was down 8.3% compared to May 2013, but the encouraging news is that this shows a 11.9% increase compared to June 2012. Volume is still below the 10-year average for the month by 22.2%, but this is what was expected.
Economists have been telling us for a while now that they expect moderate increases in 2013, compared to 2012, with our economic recovery to pick up in the latter half of 2014 - let's hope they are correct! There are many positive signs coming out of the US, our biggest trade partner, that their housing market finally moving towards recovery.
We have seen very moderate interest rate increases from record lows of 2.89% for a 5 year fixed term, to, STILL record lows of 3.04%. The move is a reaction to increases in the bond market, where the banks have seen their borrowing costs tick higher of late. Increasing consumer lending rates is the bank's way of passing those costs on to consumers. The bond market increases were in reaction to optimistic comments from the U.S. central bank.
The MLS® Home Price Index composite benchmark price for all residential properties in Greater Vancouver is currently $601,900. As expected, housing prices are down slightly from the same time last year, by 3%, but have shown slight increases compared to January 2013, by 2.3%.
New listings for detached, attached and apartment properties in Greater Vancouver are down 13.2% compared to June 2012 and 13.8% less from May of this year. The total number of properties currently listed for sale on the MLS® in Greater Vancouver is 17,289, a 6% decrease compared to June 2012 and a 0.4% increase compared to May 2013.
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