Fall 2010 Market Update

House Market

The contrast between the condo market Downtown and the house market on
the Westside described in my last newsletter continues. The demand for
single family homes and the land on which they stand is still high and
unlike condos the supply is extremely limited and due to the area’s size
will remain that way. While economic pointers suggest that local
incomes will struggle to sustain our current values, the reality is that
ship has long since sailed. Detached housing on the Westside appeals to
so many groups (with the Chinese currently leading the way) whose money
is not earned locally. Bob Rennie describes Vancouver as a resort city
and in that sense he is right. With its proximity and ease of commute
into the Downtown core (for lifestyle more than just business),
immediate access to UBC and VGH, and some of the most stunning urban
geography on the planet (the beaches, the parks and the incredible
backdrop of the mountains and ocean at every turn), there can be few
safer havens to place your money over the long term.

Condo Market

As predicted in my last newsletter, the condo market especially in the Downtown core has slowed significantly this year. The number of homes listed has exceeded the demand from buyers, so for now owners will have to lead the market and price lower than the competition in order to sell. This may result in a softening of prices especially over the winter months. This, combined with extraordinarily low 5 year mortgage rates may present some excellent options for buyers. Sitting back and waiting until next year to see how it shakes out may be tempting, but that could also be a missed opportunity. While the media speaks of doom and gloom, the underlying strength of the Vancouver market remains unchanged, so if you are buying a home to live in especially for the long term this could be the perfect time. Over the years, many of the smartest purchases my clients have secured have been during periods of short term uncertainty. The most recent example is those brave few who purchased in November and December of 2008. They know look like geniuses.