The GOOD news:
– Canadian manufacturing sector reports sales up 1.9% in March
– Housing starts are up 14000+ in Canada – the highest since 2007
– Canadian jobs are up by 150,000 in March and April
– BC jobs increased 19,700 in April
The BAD? news – comparing April 2012 to April 2011;
– Total BC housing sales were down 1.8%
– Average prices in BC fell 10.9%
– Lower mainland housing sales (# of units sold) were down 13.2%
– Lower mainland Detached home sales were down 17.8% BUT prices up 6.3%
– Townhouse sales were off by 22.3% but prices up 1.7%
– Apartment sales down 0.9% but prices up 1.1%
REALITY;
In my market area from Burnaby to Port Coquitlam (including New Westminster),
I counted 467 used house sales from March 1, 2012 to May 17, 2012 in the $500,000 to $900,000 price range ( The largest price segment)
This price range saw 146 of these homes sell at full list price or higher !!
The largest bidding war capped out at $83,000 OVER asking price (west Coquitlam)!.
31% of the detached market is experiencing bidding wars !
Contrast this with apartments. During the same period, the same areas and from $200,000 to $500,000 we had 627 used apartments sell and only 46 of them sold at – or higher than list price (= 7%)
With sales down, one would expect prices to be down as well – unless supply were restricted. But the supply of listings on the market is UP! So how does an over-supply and a drop in unit sales translate into bidding wars and higher prices? Sun Spots ? contaminated drinking water? Mayan calendar worries?
From observation and experience, I believe the aforementioned area is experiencing a spill over of demand– formerly relegated to Richmond, Vancouver west and West Vancouver – from new Canadians, combined with an increase in demand from builders for re-construction / in-fill properties.
More than ever it is important to find out what is really happening in your area before you buy or sell.
Real Estate Coquitlam 