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ShareReal estate slips again
By Jeff Nagel - Surrey North Delta Leader
Published: October 02, 2008 3:00 PM
Updated: October 02, 2008 3:32 PM
House prices slid again in September as the real estate downturn that started this spring continued.
The selling prices of benchmark detached houses fell about 1.6 per cent last month to $726,000 in the Greater Vancouver area and are now down 5.8 per cent since May. Condo prices dropped 0.7 per cent and are now down 5.2 per cent from their peak.
The Fraser Valley Real Estate Board (which also takes in Surrey, North Delta, White Rock and Langley) reported the median price of detached houses fell 5.5 per cent in September. Townhouses and condos bucked the downward trend, rising 1.3 per cent and 2.3 per cent respectively.
Observers say the U.S. financial meltdown that has pummeled stock markets and shrunk personal savings and retirement portfolios is being felt in Metro Vancouver's real estate market as well.
"People are closely watching what's happening south of the border, they're watching the financial markets and in some cases delaying big ticket purchases that they feel aren't essential right now," said Kelvin Neufeld, president of the Fraser Valley Real Estate Board.
House sales plunged 50 per cent in the Fraser Valley in September from a year ago. Residential property sales were down 43 per cent in Greater Vancouver.
The credit crisis began to unfold in the second half of 2007, but deepened in September with the bankruptcy or mergers of several U.S. investment banks and an unprecedented bailout effort by Washington.
"Things are changing so quickly and all of this has happened so recently," said Canada Mortgage and Housing Corp. analyst Robyn Adamache.
"I don't think anybody's really had time to crunch all the numbers and see how that is going to impact on things going forward."
She said upward pressure on the Vancouver housing market is "clearly off" and noted new listings are now at an all-time high.
A prediction the market will fall 10 per cent from its peak was made last month by Central 1 Credit Union economist Helmut Pastrick.
Selling prices by region:
Greater Vancouver
Detached houses – $726,300
Attached – $464,500
Condos – $369,000
Fraser Valley
Detached houses – $482,000
Attached – $320,000
Condos – $225,000
(Benchmark or median selling prices)
jnagel@surreyleader.om
