May 2007 Market Update

House Market

As predicted in the last newsletter, the heat is on again. Westside land and house prices are flying up in another spring frenzy; the sixth in succession. February 1st onwards has been a non-stop procession of 200+ groups through first open houses, Sunday night vigils with realtors hovering in their cars 10 at a time, waiting to present competing offers, then record breaking prices buzzing through the grapevine the next day. Sales $200,000 – $300,000 over list price have become commonplace. This too shall pass. I would expect to see the bulk of sales activity and price increases take place by the end of June. The net increase amortized over the full 12 months may not appear quite so scary as a result, but could still top 20%. If we have a second wind in the fall, this could even be light. Watch this space.

Condo Market

As predicted in the last newsletter, following a much needed correction in the last quarter of 2006, the condo market has regained momentum and the volume of sales is back to record levels. Prices and market conditions, however, are quite different from one neighbourhood/micro market to the next, even within the confines of the City of Vancouver. The primary variable is supply (and potential supply). Downtown now provides the greatest choice to a buyer, especially in entry level one and two bedroom homes, so it is rare to see buyers feeling like they need to compete to secure their home of choice. Hop across the bridge to Kitsilano or Mount Pleasant and the story is different. Listings are thin on the ground, bidding wars are commonplace and prices are being forced up.