‘If you can get a bidding war, you’re laughing’
Ian Austin
Province
Vancouver realtor Carole Lieberman
B.C.’s hot housing market will cool but continue to climb, according to the Credit Union Central of B.C.
After a stunning 18-per-cent jump in the market in 2006, the credit union predicts 12-per-cent growth this year and a six-per-cent hike in 2008.
“The market is price-sensitive,” said realtor Carole Lieberman, cautioning homeowners not to overprice their properties in spite of an upward trend.
“Even if the market is hot, you have to price sharply. Buyers are very knowledgeable, and they know the value.”
Lieberman says that dropping the asking price can sometimes end up in a better result.
“I have listings that aren’t selling — you have to price carefully,” said Lieberman, a Dexters Associates realtor for 18 years.
“If you can get a bidding war, you’re laughing.”
While asking prices seem extremely high — she’s currently marketing one Kitsilano unit in a triplex for $829,000 and half a duplex for $899,000 — buyers already in the market are willing to pay.
“It’s crazy,” she acknowledged. “People are paying too much, but they’re getting a lot for their own properties.”
The credit union forecast says an overall buoyant economy will spur on prices, but the looming prospect of higher interest rates could take some momentum out of the market, especially at the top end.
“Housing-market conditions will generate substantial price gains this year, but those conditions will ease somewhat next year, resulting in a more moderate price increase,” said Helmut Pastric, the credit union’s chief economist.
With urban areas already priced extremely high, the credit union expects the largest year-over-year increases outside the Lower Mainland.
“The high-priced markets of the Lower Mainland and Victoria areas will generally under-perform the lower-priced markets elsewhere in the province,” reads the credit union’s B.C. Housing Market Forecast 2007-2008.
“The North, the Interior and the Kootenay regions are on a stronger performance path.”
The credit union predicts that the positives from a strong economy will outweigh the negatives of higher interest rates. “Income and job growth will play a greater role than interest rates in supporting housing sales over the next two years,” reads the forecast.
“Rising population growth will also contribute to housing demand and sales growth.
“The interest-rate impact remains strong but will be a lesser contributor to sales and demand growth than before.”
n In a related story, the construction industry is predicting increased demand for construction workers over the next few years.
“The huge boom in construction right now in the province requires that we all ensure programs are in place to meet the increased demand for qualified workers who can continue to operate safely on our worksites,” said Wayne Peppard of the B.C. and Yukon Territory Building and Construction Trades Council.
© The Vancouver Province 2007
