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Vancouver for Homes Monthly Newsletter

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September 2007

STRONG ECONOMY = STRONG REAL ESTATE MARKET

The real estate market in Vancouver continues to be strong, in terms of volume of sales and also of price increases. The underlying reason for this is the strength of BC’s economy, along with the appeal of Vancouver as one of the best places in the world to live.

The Canada West Foundation, has issued a report on the economic outlook for B.C. Quoting from their summary: “BC’s strong performance is likely to continue. The province is positioned to experience economic growth that exceeds the national average in the next couple years. A number of factors support this positive outlook. The provincial government has a much improved fiscal position and BC’s business climate has improved. Non-residential construction activity is very healthy. The retail, wholesale, and services sectors will continue to perform well due to solid employment and income growth in the province. BC is attracting immigrants from abroad as well as people from other provinces. China and other Asian economies continue to grow rapidly.” [Full report: http://www.cwf.ca/V2/cnt/publication_200709051637.php ]

Major construction in the Province continue. These include the ten-year $1.8 billion expansion of the Vancouver Airport, the $1.9 billion Canada Line rail-based rapid transit system, and Pacific Gateway program that is expanding the transport infrastructure. We cannot forget the Olympics either, which accounts for a number of large infrastructure projects, including the recently started Olympic Villages in Vancouver and Whistler.

Canada West’s report notes that “These industrial, institutional, and transportation projects will ensure that BC’s construction sector remains very active over the next 5 to 10 years”. This all suggests that the economy will remain strong, and with it the real estate market. Of course there are factors to watch. The construction boom here and in Alberta is definitely putting pressure on the skilled trades. The US economy is not doing so well and though negative effects are offset by the strong Asian economies, Canada does rely on it’s southern neighbour. However overall the Canada West Foundation is forecasting “real economic growth of 3.1% for 2007 and 3.2% for 2008”.

REAL ESTATE MARKET

AUGUST - NOT SO QUIET AFTER ALL

Last month we asked whether we would be seeing the impact of summer vacations and a resulting slow down in the real estate market. Well, not so much as it turns out. The Real Estate Board of Greater Vancouver (REBGV) reports this month that “total residential sales reached 3,384 units in August 2007, a 12.9 per cent increase when compared to 2,998 sales in August 2006 and a decrease of 7.3 per cent when compared to 3,649 sales in August 2005”. We did see a drop in the number of new listings, by 2%, which is more the normal pattern - no one lists there home while they are off on vacation.

I have also set out the REBGV benchmark prices as published for this month. Note that these are for typical properties in each area - it is no substitute for a proper market analysis. Figures in brackets refer to the 1 year change, with 3 year change in square brackets. As is usual in our current market we have seen increases across the board. The biggest percentage increases were Port Moody (detached), Vancouver West (attached) and Vancouver East (for apartments).

DETACHED BENCHMARK PRICES

Detached Greater Vancouver $726,067 (11.1%), [3yr: 49.9%]
Burnaby $721,688 (10%), [3yr: 55.3%]
Coquitlam $640,430 (10.9%), [3yr: 46.7%]
South Delta $625,548 (5.6%), [3yr: 42.8%]
Maple Ridge $449,908 (12.1%), [3yr: 38.2%]
New Westminster $540,697 (2.2%), [3yr: 37.4%]
North Vancouver $845,846 (10.4%), [3yr: 43.8%]
Pitt Meadows $501,899 (13.4%), [3yr: 52.7%]
Port Coquitlam $521,744 (7.9%), [3yr: 44.1%]
Port Moody $812,580 (31%), [3yr: 81.2%]
Richmond $720,558 (12.6%), [3yr: 51.5%]
Squamish $502,050 (18.2%), [3yr: 24.6%]
Sunshine Coast $433,238 (15.6%), [3yr: 52.8%]
Vancouver East $650,551 (8.1%), [3yr: 48.9%]
Vancouver West $1353,255 (16.8%), [3yr: 65.9%]
West Vancouver $1411,423 (9.1%), [3yr: 52.8%]

ATTACHED BENCHMARK PRICES

Attached Greater Vancouver $446,577 (9.8%), [3yr: 45.5%]
Burnaby $435,855 (10.5%), [3yr: 46.9%]
Coquitlam $408,557 (10.4%), [3yr: 44.7%]
South Delta $416,981 (6.2%), [3yr: 45.3%]
Maple Ridge & Pitt Meadows $309,328 (8.8%), [3yr: 48.8%]
North Vancouver $569,745 (9.6%), [3yr: 41.4%]
Port Coquitlam $374,085 (9.4%), [3yr: 31.7%]
Port Moody $381,461 (6%), [3yr: 51.7%]
Richmond $434,690 (9.1%), [3yr: 44.9%]
Vancouver East $468,791 (9.1%), [3yr: 49.9%]
Vancouver West $679,262 (13.7%), [3yr: 48.1%]

APARTMENT BENCHMARK PRICES

Apartment Greater Vancouver $367,944 (11%), [3yr: 59.1%]
Burnaby $325,359 (8.7%), [3yr: 58.2%]
Coquitlam $280,636 (10.4%), [3yr: 61.4%]
South Delta $332,240 (12.8%), [3yr: 50.6%]
Maple Ridge & Pitt Meadows $253,089 (6.5%), [3yr: 70.2%]
New Westminster $290,211 (14.4%), [3yr: 68.8%]
North Vancouver $374,340 (9.5%), [3yr: 55.8%]
Port Coquitlam $247,317 (12.1%), [3yr: 68.7%]
Port Moody $294,091 (8.1%), [3yr: 63.4%]
Richmond $303,897 (10.4%), [3yr: 61.4%]
Vancouver East $308,530 (16%), [3yr: 65.6%]
Vancouver West $469,165 (10.5%), [3yr: 55.4%]
West Vancouver $665,878 (14%), [3yr: 52.6%]

TIME TO BUY OR SELL

If you are looking to buy or sell property then we can help you. We work for you either as a buyer’s agent, to help you find your next property, or as a listing agent. If we cannot help you personally we have excellent partners in most areas within B.C. We and our partners are licensed realtors with the experience and knowledge to help you make your next move a success. Call us to find out how we can help you now.

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