Well, it’s that time of year again… the time in Kitsilano where everyone stops working and heads to the beach to enjoy the sun! The weather this past weekend was spectacular and let’s hope for more of the same for the long weekend.
In the Kitsilano real estate market, comparing detached and attached markets, we are seeing one consistent trend and two divergent ones:
1) Listing inventory is climbing in both markets, as is typical this time of year, with both markets showing inventory levels higher than anything we saw in 2011 or so far this year. If this trend continues, we may see inventory levels exceed the high levels of 2010. Combined with interest rates that are still near record lows, this Summer should provide some good buying opportunities.
2) Sales activity has been steady in the attached market, but has seen a surge in the detached market. This may be attributed to the lowest average price we have seen for detached homes since the beginning of last year.
3) Contrary to what the inventory vs sales numbers from above may suggest, we are actually seeing a push in attached homes to record highs while detached homes, as mentioned, are at the lowest average price we have seen since early last year. It’s difficult to imagine both of these trends continuing given the fundamentals in play, so I expect condo prices to level off and detached home prices to get a boost next month.
While listing inventory is expected to grow, conversations with our connections in the banking world suggest that mortgage pre-approval applications are flooding in at the moment. It is shaping up to be a busy Summer, with many buyers eager to jump in they find the right buy.
Enjoy the sun!