Real Estate Report: Over 200 Detached Homes Sold in May!
Sales volumes have been brisk for detached Westside homes. Over 200 detached homes were sold on the Westside of Vancouver in May! We have not had over 200 houses sold in a single month since spring of 2011. Apartments and townhomes did not fare as well, neither of which came close to their spring 2011 volumes.
Annual peak and trough active listing volumes appear that they will decline in 2014. It is this relative decline in active listings that has had the greatest effect on the lower MOI and the tight market we find ourselves in.
The other magnifying factor this spring has been a return to sub 3% five year fixed interest rates. As always, low cost money makes it mentally easier for buyers to raise their price ranges. Vancouver continues to be one of the nicest cities to live in on the planet and our home prices certainly reflect that!
I sold my Vancouver real estate holdings in 2010 expecting to see a downturn in prices. For houses, sales prices have risen significantly since that time. For apartments there has been a much more modest rise. In hindsight I would be happy to have held several detached homes over the period but then as now, my choice was guided by numbers and statistical probability. Since 2010 I moved my real estate cash into investments in the Peace River region of BC.
Are you are an investor and want to buy cash flowing properties with minimal down payments? There is precious little opportunity in Vancouver were only the gamble of capital gains are sought. I have purchased several revenue properties in Fort St. John, BC and continue to help clients do the same. Fort St. John and the Peace River District are in the heart of some of the largest natural gas deposits in North America. Premier Christy Clark's election promise to promote BC's natural gas industry won her the last election. Properties in the Peace River area are cash flowing beautifully with projected annualized returns of about 20% based on a 5 year hold. If you are interested in exploring these investment opportunities, give me a call and we can get started.
Remember that Months of Inventory (MOI) is a measure derived from the number of active listings during a given month divided by the number of sales that month. It indicates the theoretical length of time it would take to sell all of the properties on the market if nothing changed. Historically, 0-5 months of inventory has generally implied upward price pressure for the ensuing six months, 5-8 months of inventory meant a flat market with respect to pricing and over 8 months of inventory has, for the most part, precipitated downward price pressure.
Do not hesitate to call me if you have any questions. Please pass this and my contact information along to any friends or family who might benefit from my services.
Sam Wyatt VancouverRealtor