Spring 2005 Market Update
Well, we’re back! As predicted in the last issue, the correction has worked. To be more specific, since 2001, the market in Greater Vancouver has been rising swiftly (Jan 2001- Jan 2004 benchmark prices for condominiums rose by approx 50%). From Feb 2004-April 2004 competing offers forced prices up even further but at an unsustainable pace. As a result a correction was required. This was provided by a much slower final quarter of 2004 which returned some realism to the prices and allowed buyers to see some value again.
Since the beginning of February this year, buyers have returned in huge numbers. Inventory remains limited in every area and price range in the City of Vancouver so the demand is once again outstripping supply. Pressure on prices is therefore high and we anticipate increases through the year as long as the cost of mortgage money remains low. Whether the increase is in the 5% range or considerably more will depend upon how long the spring market can sustain itself. Watch this space.