Various recent housing market reports have been the topic of discussion in the Vancouver Sun in late September. All seem to agree that prices are leveling (the headline stated “price hikes have tapered off”) and also the obvious, that the number of sales for the past few months are down from the same months last year.
The best analytical comments came from Cameron Muir of Canada Mortgage and Housing Corp and addressed the question of a “balanced” market. He felt (and I believe this is crucial) that we still have too low an average inventory (supply) relative to the demand that continues to exist. While he is referring to Greater Vancouver, the argument applies equally to our North Shore. His thought is that this balance (Vancouver-wide) could arrive “sometime in 2007”. My 2 cents; the stronger (higher socio-economic) nature of the North Shore could lead to our region being slower to attain this “balance”. To put it another way, our supply (inventory of homes for sale) may need to rise fairly significantly to satisfy the strength of demand (or those who wish to live here). This supply can only come from two sources; i) new construction and ii) those selling and moving off the North Shore. New supply is slowing down (a significant proportion of current construction is already pre-sold). One conclusion: Is the North Shore still a good investment? You bet it is! Despite the recent closures of the Grind, I am happy to have hit my 250th ascent. That, plus climbing the Lions and the Chief have been among the highlights of what has turned out to be a most fantastic summer! Roll on Fall season! A.
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