Vancouver, British Columbia Realtors say that the area is becoming more affordable thanks to historically low interest rates, but sales are brisk at the entry level.

"This world-class city offers a diverse blend of nationalities and a clean, safe and spectacular setting," says Realtor Beverly Boston. "Homeownership affordability in Vancouver improved throughout the second quarter of 2003, as historically low mortgage rates offset rising house prices. This was measured by the proportion of pre-tax household income needed to service the costs of owning a home in Vancouver. This did fall to 41.2 percent in the second quarter of 2003, from 41.7 percent during the previous quarter. This of course helped produce last month's record home sales, which broke an 11-year record.

Boston advises, "Housing market conditions in our city of Vancouver continue to be the tightest in the country due to a severe shortage of available new listings and strong demand. With resale market conditions extremely tight, Vancouver developers are stepping up new housing construction and housing starts are up over the same period last year. Our market looks extremely good for the foreseeable future."

Says Realtor Tim Zimich, "While the impetus for property value increases still remains in the entry detached range, other markets (mid- and upper detached ranges and the apartment sector) stabilize due to a tendency toward inventory built up. We entered the new year with low levels of inventory typical for the first quarter of the year, however, beyond the second and third quarter, expect a stronger flow of new inventory.

"Last year saw a dramatic rise in the total number of properties sold through the Real Estate Board of Greater Vancouver MLS," continues Zimich. "While sales volume has been increasing steadily since 1998 when the MLS reported only 16,000 sales, volume levels reached a very respectable and encouraging 28,000 sales in 2001 before peaking last year at 35,000 transactions. Canada Mortgage and Housing Corporation predicts only a marginal reduction in activity to approximately 33,000 sales in 2003 while other sources believe our level of sales will exceed last years' numbers.This level of demand, coupled with low first and second quarter inventory levels, will translate into strong market pressure for the first six months of 2003 until seasonal inventory levels build during the second and third quarter. Expect median prices to increase as prospective homesellers attempt to capitalize on strong first and second quarter market activity."

He adds, "Given extremely tight rental vacancy rates, demand will be fueled primarily by first-time buyers entering the market in the lower, entry ranges of the detached market and the strata markets. Demand will be further supported by increasing positive migration, while investors and re-purchasers will also add pressure on the demand side of the equation. While our diverse local economy will weather economic slowdown better than other communities in British Columbia, only when our province becomes a magnet for business capital can we look forward to a marked increase in inter-provincial and international migration which will fuel a more protracted real estate market recovery throughout the Lower Mainland."

Vancouver Island

"If you're thinking of buying a home you need to get on the bandwagon as prices are steadily increasing and there is no sign of stopping," suggests Realtor Marilyn Kennedy. "It's been a best-kept secret for too long, Vancouver Island is booming. Prices in the Parksville/Qualicum area have risen 7 percent over the last year, the average house price in that area is $212,441.00. Nanaimo prices have risen 10 percent with the average house price being $185,000. Surprisingly, Port Alberni (on the highway to the famous Tofino and Uclulet beaches) has risen 22 percent over the year, with the average price still being a low $104,600.00."

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Published: September 19, 2003

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