Housing report for Greater Vancouver - June, 2012
The number of residential property sales in Metro Vancouver continued to slide and hit a 10-year low in June.
According to a board report released Wednesday, sales of houses, townhomes and apartments dropped to 2,362 last month, a 27.6-per-cent decline compared with 3,262 sales in June 2011.
June sales were the lowest total for the month in the region since 2000 and 32.2 per cent below the 10-year June sales average of 3,484, the report shows.The total inventory at the end of june at 18,493 units, which is up 22 per cent from the same point in 2011.
Below is a snap-shot view for the market:
- Vancouver's west side recorded the salle of 769 single-detached homes in the first six months of 2012, down substantially from the 1,310 that sold there in the fst half of 2011.
- Vancouver's east side similarly saw 767 single-detached sales, compared with 1,053 in the first six months of 2011.
- Richmond sold 603 single-detached homes from January to June compared with 1,111 for the same period of 2011.
The benchmark prices for Vancouver West and Richmond, for example, stayed relatively flat from January to June, with Vancouver West recording a 2.5-per-cent increase to $823,000 and Richmond's benchmark price dropping 0.6 per cent to $590,000. View homes for sale on the MLS® system.
Will home prices stay flat as forecasted by the real estate board?
It is hard to be optimistic when home buyers are now subjected to more stringent bank rules to qualify for home financing. Many home buyers will fail to meet their bank requirements they are ablle to service their loans. A home buyer who needs to get financing for $450,000 mortgage will need to earn over $100,000 a year to qualify.
(The above chart depicts deflating home prices reversing the price gains made during the past 10 years. Declining home prices will meet the trend line around 2017, where average home prices in Vancouver is at $650,000. Will...