Real estate rebound looks solid
Economist Helmut Pastrick says it appears the worst is over for the Lower Mainland's housing market.
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Lower Mainland home prices have now regained at least half of the ground lost in the real estate market slide of the second half of 2008 and early this year.
Central 1 Credit Union economist Helmut Pastrick, who had predicted a plunge of 25 per cent, says Lower Mainland prices bottomed out in March down 13 per cent from their peaks and the rebound now looks solid.
"Housing prices look like they made the turn in March or April and have gone
up every month since," he said. "It looks like the worst is over for the housing market."
The Real Estate Board of Greater Vancouver reported the price of a benchmark detached house rose to $732,650 last month and is now down just 0.7 per cent from a year ago.
Fraser Valley detached house prices also climbed to $483,840 – 3.5 per cent short of August 2008.
Pastrick said Lower Mainland real estate prices overall have climbed seven per cent from the bottom.
While the one-year stats are getting close to even, Pastrick estimated prices need to gain another seven per cent to recapture the peaks of early 2008.
"The market has shown very good strength," he said. "Mainly due to the record low mortgage rates and the attractiveness of home ownership in general."
The market may not keep rising steadily, he said, but predicts economic growth will return to B.C. next year, partly fuelled by the 2010 Winter Olympics.
The benchmark price of a townhouse or duplex in Greater Vancouver was $459,150 in August, down 0.9 per cent from a year ago.
Typical condos sold for $369,260, down 1.4 per cent from a year earlier.
In the Fraser Valley, benchmark townhouses sold for $310,400 in August (down 4.7 per cent from August 2008), and benchmark apartments sold for $236,140 (off 5.9 per cent year over year.)
Selling prices of Fraser Valley residential properties as a whole climbed 0.8 per cent in the past month and 3.4 per cent in the last three months.
“The last three months was a welcome return to a busier, more stable market, but also a more discerning one,” said Paul Penner, president of the Fraser Valley Real Estate Board. “Not every house was flying off the shelf like they did four years ago.”
Most properties listed sell for just under 60 days, he said.
Competitive pricing remains a key factor for how quickly a home moves.
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