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Deep Cove Crier Article November 2014

Blog by Patricia Houlihan - Personal Real Estate Corporation | November 1st, 2014

It’s a SPOOKY real estate market out there!

Ok maybe “spooky” is a stretch but you get the idea…..

This year has been very odd with Spring home sales volume not meeting our expectations: many amazing homes failed to sell.  Over the usually slow summer period we saw unusually high sales volume.  Then in the normally busy September we saw a slight slowdown. Now in October we are faced with a lot of buyers but not enough suitable housing to meet the demand.

After several years of not having enough buyers in the Cove to push the prices up in line with Vancouver, now we have a lot of buyers (in part because the Vancouver prices are continuing to climb) but not enough homes for them to buy!  Those sellers who have taken advantage of the current market are seeing very good activity and prices for their homes….we need more of these sellers!

Why are there so many buyers looking in the Cove area now?  The Greater Vancouver area is also seeing high levels of buyers looking. This may be because the majority of analysts seem to be predicting some upward movement in interest rates as early as Spring of 2015. Many buyers need to buy ahead of rate increases because every percentage point counts.  If interest rates do increase, this can lead to lower sale prices because buyers cannot afford to pay both higher rates and higher prices.  While we are not anticipating 1980’s size rate increases, every little bit can impact on affordability and prices.

With regard to the number of Cove buyers in particular, Deep Cove prices are bringing people across the bridge. We have always marketed the homes we sell to the East Van and Kits buyers and many do make the move for value and the smart ones for lifestyle.  As the gap between Vancouver and the Cove continues to widen, we will likely see more of those buyers moving here. 

What does this all mean?

Sellers: If you are thinking of listing, now is a great time as the supply/ demand equation has improved for you.
Buyers: If you can find something to buy, and lock into a long term low rate, you might want to move quickly to avoid paying the bank more. Even if rates don’t go up significantly, personally I don’t like to pay the bank anymore than I have to; an extra $50 per month in  interest payments could buy me a nice lunch at the Bistro!

If you would like to discuss the current market or your particular real estate needs, please call or email me or drop by our office in the Cove at #101-2221 Panorama Drive, North Vancouver.