September Statistics from the Fraser Valley Real Estate Board showed a decrease overall in inventory for the fourth month in a row. The beginning of the fall market is showing sales lower than a typical September (-34% from 2009) but up 4.7% from the August sales numbers this year. Consumers have approx 13% fewer properties to look at in the Fraser Valley than they did in May 2010 but the market is still tipped in favor of buyers due to a still healthy selection, stable prices and record low interest rates.
Mortgage rates have been providing relief for BC households but with our fundamental dependence on the US – and its continued recession - our BC economy is sluggish and still in recovery from the financial crisis.
Similarly, the ongoing slowdown in consumer spending (unemployment at approx 8%) could lead to a further contraction in the housing market throughout the final quarter of 2010 and into most of 2011.
Some economists are predicting home sales declining approx 15% by the 2nd quarter of 2011 and home prices declining about 8% by the end of 2011.
Silver linings to note; the normalization of short and long term interest rates will likely be deferred - equaling lower payments for variable rate mortgage holders; also first time buyers and those set to renew their mortgages will be offered a chance at securing these record low rates.
If you would like to discuss how the economy and housing sector will influence your decision to buy or sell in the near future call us anytime at 604-583-2000 or email email@example.com