2010 Fall Market
The Fall market has turned out to be slower than expected.
The Real Estate Board of Greater Vancouver has determined that residential sales for Oct. 2010 are down 37% over October 2009…..but they are up 73% over October 2008.
Lower mainland average prices have increased 4.6% over the past 12 months but they have dropped .2% since June of this year.
Interest rates have not gone up (I was right about that one as well). The best discounted 5 year rate now is a phenomenal 3.34% and the best variable rate at 2.25%.
The HST is still causing some problems for new homes. Price reductions are common as are 'incentive' rebates of 2% of the purchase price to the buyer.
The government did say the HST would be 'revenue neutral' as builders would pass on their 2% material rebate - however, it did take a soft market to initiate this.
Organizations such as the Urban Development Institute have informed Victoria that the Sept. 2011 HST Referendum is causing new home buyers to postpone buying NEW - or purchasing used (no HST) homes instead.
Developers as well are reluctant to start or invest in new projects due to the drop in sales as well as the prospect that any HST they pay now may not be recoverable if BC voters axe the tax.
There are excellent buying opportunities right now given the low mortgage rates and eager sellers.