5 Signs Real Estate is on the Rise

We believe real estate is on the rise – here’s why.

1. Home Prices are on the Rise 

According to Cameron Muir, Chief Economist at BC Real Estate Association (BCREA), press release, “Last month was the strongest April for home sales in a decade” and “the elevated level of buying activity this spring is now expected to push 2015 home sales to their highest level since 2007.”

This is reiterated in the Greater Vancouver area where home prices continue to rise from $394,000 in 2005 to $673,000 in 2015 based on year-to-date MLS® Housing Price Index (HPI).

2. Less Inventory 

The number of homes for sale in Greater Vancouver and the Sunshine Coast dropped 16.6% and 5% since April 2013 and October 2014 when inventory was at it’s peak in Vancouver and on the Coast respectively.

Couple that with low interest rates of 2.59% on a 5 year mortgage and only 5.9 months of inventory for sale (national average) and you have a recipe for rising home prices.

3. More Buyers 

Sales to active ratio indicates how many buyers there are in a given marketplace within a specific timeframe for every 100 homes for sale.

Presently, Greater Vancouver has 21.5 home buyers for every 100 homes for sale up 33.5% over the same time last year placing it firmly in a seller’s market.

While the Sunshine Coast remains in a buyer’s market, with 7.8 home buyers for every 100 homes up 36.8% over last year at this time, it is sure to follow the path of Greater Vancouver as it has done historically.

 

4. Homes are Selling for More

It’s a small margin but over the past year homes are selling for more than the average percentage of original asking price by 1.3% and 1.4% respectively in Greater Vancouver and on the Sunshine Coast.

 

5. REALTORs® are Buying Real Estate 

REALTORs® are notoriously frugal home buyers.

When REALTORs® start laying down hard-earned cash to by homes, income property or bare land as an investment you know the real estate market has hit the bottom and home prices are on the rise.