Dexter Associates Realty

June 2010 Newsletter

Market Shift

Economics Behind the Market

• Economy today is improving as opposed to 2008
• Affordability of housing will be an impediment for house prices going forward
• United States housing market is still struggling, foreclosure rate is high, market is oversupplied but housing starts are at half the level of new households required in the US so oversupply will shrink
• Consumer & Business confidence is increasing
• Employment rate is increasing & unemployment is decreasing
• Since 2008, price of mortgages have dropped 28%

 Real Estate Market to Date

• Informal surveys show 33 to 40% of buyers are first time buyers
• Based on sales to active listing ratios, Vancouver/Fraser Valley/ Victoria in balanced markets-rest of BC in Buyer’s market
• May stats showed Vancouver in a Buyer’s Market but too early to tell-next two months will tell us more
• Rapid pull back  in housing starts in 2008/2009 help stabilize prices
• Pent up demand being exhausted
• Economy recovering but waning affordability a counter balance against market activity

What to Expect

• Population of BC to grow by another 500,000 by 2020 to 6 million people
• Interest rates should peak in 24 months with the Bank of Canada rate 1% by year end, 3% in 24 months- or prime rate 3% by year end, 5% in 24 months
• Upward pressure on fixed rates as economy improves
• Pull back in sales activity as carry cost increase
• Prices softening but increasing migration & decrease in new housing stock will help sustain prices
• Double digit gains in prices not likely over the next 5 years
• Prices to have slow & steady gains & will mirror the global economy

*The above notes are from Cameron Muir

Supply & Demand

• 17,492 Active Listings as of May 2010 for Greater Vancouver, 28.2 % increase compared to this time last year
• Buyers have more choice in every property type
• Buyers are taking their time & not feeling pressured as they did late last year or earlier this year
• Interest rates are still low which will help maintain the activity
• Benchmark price for Properties in Greater Vancouver:
  •  Detached - $810,175, an increase of 19.1% from May 2009
  • Attached - $500,339, an increase of 14.8% from May 2009
  • Apartment - $398,783, an increase of 13.9% from May 2009

Summary

Trying to predict the real estate market is almost like predicting the stock market. No one really knows but many will do their best to tell you they do! Buying or selling in any market stage is about your lifestyle & what is best for you at that time. In all of my years as a real estate consultant, the most rewarding gain is seeing the lifestyle changes of my clients. It was not about timing the market or even getting the best deal but enjoying life now that they have their home base. I purchased my own place when the market was high but have no regrets for several reasons:

 * Very few places like this one become available

* It was everything I wanted on my wish list

* We enjoy a lifestyle that suits all of our needs

Have a friend or neighbour that is trying to make sense of the real estate market? Absolutely have them contact me, I’m happy to help.

 William Lew
604 862 1966 (direct)

william@westsideliving.com or williamlew666 (skype)

Dexter Associates Realty

 Do you know someone looking to buy or sell in the near future? 

Please pass along my contact information.  Your referrals are greatly appreciated.

This communication is not intended to solicit property already listed