SnapStats
After all the real estate price increases between 2020 and this year, 2021 saw a spring spike, followed by a summer settling. Moderation is the order of the day now as pretty much universally across our region we are looking at falling inventory with corresponding falling numbers of sales, while prices remain pretty stable. Low interest rates are still encouraging some buyers to take advantage of them.
As always the small tight Pitt Meadows market shows July sales in excess of inventory in both detached and attached housing categories. The next strongest July market was in Port Moody townhomes & condos where almost 9 in 10 homes sold after an average of only 11 days on the market. The inventory there went into a sharp decline. Maple Ridge attached market had a July selling rate of almost 8 in 10 homes selling with an average of 9 days on the market.
Toughest seller markets were in Burnaby detached (3.3 in 10 homes selling) and Coquitlam detached (3.9 in 10 homes selling). These statistics speak to affordability. Buyers priced out of detached purchases are turning to townhomes and condos.
While mortgage rates are currently so attractive with a fixed term hovering just above 2%, the banks are reviewing their lending criteria. According to many Ozzie Jurock (that guru of real estate forecasting) subscribers, banks no longer loan on equity, only on income. This has been looming for some time – noteworthy among seniors looking to downsize, who cannot use their equity or investments in order to buy before selling. Same subscribers also reported credit lines not being renewed. So…tightened lending may well achieve the goal of cooling the market in some sectors, while at the same time tempting local residents to move to more affordable parts of the province or country. This will not help our workforce.
On a positive civic note, Port Coquitlam wins the forward thinking award for putting its money where its mouth is. The city is set to open its very own new City Preschool this fall, operated and organized by the City. Mayor Brad West explained “Child care is not only important for the economic and social well being of families, but it is critical for a robust local economy.”
The licensed program is designed for children aged 3 to 5 and provides an opportunity to apply for provincial child care subsidies.
Way to go PoCo – even during Covid-19, you were still working on it.
Stay cool friends and enjoy the summer. Our team can take the heat and continue to keep our clients covered no matter the climate. We are ready with valuable tips to be prepared for the up or downsize – maximizing your major asset’s value. You have only to ask!
We remain your Generations Real Estate Partners:- Michelle Hawthorne, Scott Johnson, Ray Harris, Shane Goutsis and Sheila Francis.