January Macrealty Market Report:
Please click on the banner or the link above for the most recent Macrealty Report. You'll note that the report refers to moving from what really has been a crazy busy Fall and Winter, into the traditionally stronger Spring. I don't think Spring will be as strong as the past six months have been for 3 reasons:
1. Interest rates are supposed to increase and this usually slows buying activity which also pushes prices downward.
2. The federal government has announced that it may increase, perhaps even double, the legally required downpayment for home buyers-this will push a lot of buyers out of the market and of course decrease activity and likely prices (supply and demand).
3. We experienced a brief market decline in from late 2008 to the first quarter of 2009. Normally (looking back at what has occurred over several decades) slowdowns/price declines last years, not months. Particularly in Vancouver, our market barely declined at all after an unprecedented upswing. Based on normal market cycles, this suggests that we will see another downturn in the short-term and many are predicting this will occur after the Olympics.
If you would like to discuss any of these issues in more detail or any other issues regarding real estate, please contact me by phone or email at your convenience.
January Macrealty Market Report
Blog by Patricia Houlihan - Personal Real Estate Corporation | January 11th, 2010