Interest rates have continued to stay stable and low. This is one of the biggest market forces in real estate and it is getting buyers off the fence and into homes. Despite the slowdown in the rate of appreciation, the volume continues to impress with the number of monthly closings now pushing up into the pre-crash figures.
Overall the local median price has stabilized and I believe this is more about the imbalance of market segments than a real pricing contraction. Most of the activity in the market is in the bottom half of the price range. This heavy weight towards lower priced units definitely effects the median price. That does not mean that an upper price range house has lost value, but rather that it will take longer to sell.
Sellers are well advised to be careful with price, the days of overpricing a house and expecting a swarm of hungry buyers is past. These days, well priced homes will move and overpriced homes will sit. We have a slight glut at the top right now and remain tight on sub-median inventory.
The Downtown urban condo scene is doing pretty well, I monitor Vancouver USA urban condos very closely on my site Urban Living in the 'Couv' and inventory is tighter now than it was over the summer. That bodes well for Vancouver's emerging urban scene.
Buyers should feel very good about the current interest rates and the slight softening on appreciation as they can feel confident that houses are generally well priced at the moment with fewer overpriced properties and the best rates we have seen in a long time.
Musings on the state of the market with tips, information and a little fun.
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