There’s yet more indication the many Vancouver brokers sitting on preapprovals are finally getting the break they need, with the province’s Realtor association confirming a near-8 per cent dip in the value of properties sold during the first month of the year.
"Provincial sales activity was down in January from year ago levels,” said Cameron Muir, chief economist with the British Columbia Real Estate Association. “Increased market activity outside the Lower Mainland in January was offset by fewer sales in Vancouver and the Fraser Valley.”
While residential sales rose 7 per cent to 1,620 units outside the Lower Mainland, they declined by 10 per cent in Vancouver and the Fraser Valley. A total of 3,976 homes traded hands on the MLS system over the same period, down less than 4 per cent.
More importantly for mortgage professionals is that the dollar volume of those properties sold dipped 7.6 per cent to $2.1 billion in January compared to the same month last year. The average MLS residential price was 3.8 per cent lower at $527,219 compared to January 2011.
That overall drop in prices bodes well for brokers sitting on a mountain of preapprovals – clients who’ve been waiting for asking prices to fall from near-historic highs. Those clients has sat out the last year as sellers ratcheted up asking prices in order to capitalize on foreign demand for Vancouver-area properties.
That demand has since waned, say analysts, and sellers have finally started to bring down their asking prices or take their properties off the market, effectively encouraging others in the market to drop their own pricing.
BCREA’s January numbers will likely add to that momentum.
Yet more sellers will have to leave the market to increase demand from investors and other buyers in B.C., argues one industry veteran.
“Despite the low interest rates clients are in no rush to buy,” Morris Briglio, president and senior mortgage consultant with The Mortgage Advantage, said. “There’s simply too much inventory on the market.”
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate