September 2007 Market Update
As predicted in the last newsletter, the spring frenzy in the Westside single family house market was exactly that. Values increased approximately 15% in the first 6 months of 2007. July and August were much quieter, with fewer homes coming onto the market and less urgency on the buying side too. Traditionally mid-September to mid-November is the second busiest period of the year. However this was not the case in 2005 or 2006. Prices had accelerated so fast and there had been such a high volume of sales in the spring of each of those years that the market needed the second half of the year to catch its breath. My guess is that 2007 will follow suit, but if enough move-in and move-up buyers are concerned about securing existing pre-approved mortgage offers before any further rate hikes, then I might be proved wrong!
The summer of 2007 was much stronger than the same period one year earlier. With prices increasing, but at a more sustainable rate, the market appears to be more balanced. Overpriced listings will not be blindly scooped up anymore, however fairly priced condos will sell (with the right market exposure) in a couple of weeks and aggressively priced properties can still generate multiple offers on the first day. The fall season sees the launch of a number of high profile new pre-construction projects. The south east end of False Creek, future home of the Olympic village, is finally set to hit top gear with several exciting pre-sale investment opportunities. Meanwhile the battle of the “big guns” will play out Downtown, with the new Hotel Georgia project launching head to head against the new Ritz Carlton tower. With $1500-2500 per square foot becoming commonplace, the sky really is the limit, it seems!