A buyer's real estate market is burgeoning in BC as June residential sales declined 23% throughout the province. The REBGV showed a decrease in sales for the first time in three months; at a total of 2,968 sales, activity was down 5.9% from last month throughout Vancouver and the Fraser Valley. Increased housing inventory and more stringent requirements on government-backed mortgages factored into the cooling of prices by slowing inflation and decreasing poorly qualified buyers, resulting in a stabilized market.

The cooling in the market is only a decrease relative to high sales and prices up until mid-year. To put it into perspective, the BC Real Estate Association reported that residential sales dollar volume was up 31%, overall sales rose 17% and the average price tag reached increased by 13% when compared to the first half of 2009 province-wide.

Benchmark Price Down

Overall, June's benchmark price in Greater Vancouver was $580,237, down 1.8% from May's benchmark of $590,662. Regional exceptions to the trend occurred in Port Moody, and Sunshine Coast, where detached homes rose 2.9% and 1.6% respectively. A slowdown in construction activity and limited land in the Lower Mainland has kept prices stable, preventing rapid property devaluation.

Unprecedented Low Lending Rates

Banks kept lending rates unprecedentedly low to prevent the instability that is threatening some European markets from spreading. The rising mortgage rates that many economists anticipated after the Bank of Canada raised the overnight lending rate never happened. Instead, three of the big five banks reduced their five-year rates by 0.15%. The first half of 2010 defied expectations by continuing the trend of rising prices, due in part to poor inventory and a motivation to beat the arrival of the HST in BC.

Increased Housing Inventory

Currently, home buyers are seeing a greater range of options, and are not having to contend with the bidding wars symptomatic of overheated markets. "Market conditions have shifted from balanced conditions at the start of the year to a buyer's market this summer" said Cameron Muir, BCREA Chief Economist. Overall June home sales in Metro Vancouver were 29,721 sales, a decrease of 84 in May and 540 in April, and 1,287 fewer sales than there were in June 2009.

For people who have been thinking about buying a home in Vancouver, now is a good time to get in contact with a Realtor to prepare their strategy.