Monday, December 6, 2010

Residential investors will find balance in 2011

Below is a recent report by FRANK O'BRIEN, Western Investor:

When the Onni Group unveiled its Ora condominium tower in Richmond September 29 for local realtors, the entire 68 homes sold out in less than a week at more than $510 per square foot.

It was a hopeful harbinger for a Metro Vancouver housing market that is moving cautiously into the second year since a global recession slapped sales down 40 per cent and put a stop to double-digit price increases.

As 2010 ended, multiple listing sales through the Real Estate Board of Greater Vancouver were still down 36 per cent from 2009 and average prices had not moved in nearly six months. Condominium sales, which now dominate the market, were off by 38 per cent and the average price was nearly unchanged from a year earlier.

Still, there is now a palatable buzz of optimism in the air, as developers and analysts figure that 2011 will begin the turnaround in B.C.'s housing market, despite the harmonized sales tax, stricter regulations on mortgage lending and buyers still spooked by a sluggish economy.

Read the full report here.

The influence of Asian buyers was quoted in the article:

"Asian buyers are active in Richmond, parts of Coquitlam and on the west side of Vancouver, where Canada Mortgage and Housing Corp.(CMHC) estimates that more than 60 per cent of the $1.5 million-plus homes are sold to Chinese buyers".
Sales activities for prime building lots are still very high as can be seen in a recent listing at #3556 W. 34th Avenue in the Dunbar area of Vancouver west. The listing agent mentioned that he was expecting 7 offers to be presented 4 days after it was posted on the mls system.

You can view homes for sale in Vancouver West using the link here.

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