September 16, 2013
A Growing Economy
With the re-election of Premier Christy Clark and the BC Liberals in May, the shift to an optimistic economic outlook for British Columbia has begun. With four years of political stability ahead and the implementation of the Liberal’s Jobs Plan underway, business leaders across the province are making important decisions to invest for the long term! There is an upbeat feeling of confidence as thousands of new jobs will be created across all industries in the years ahead.
Strong Summer Sales
Looking at the real estate market, sales this past spring were well below expectations. Uncertainty about the political future of the province and the unwinding of the HST combined to put a damper on the market as many buyers waited to see what would happen. Since then, sales have picked up nicely! The Vancouver Real Estate Board recently reported that sales on the MLS had increased year over year 42% in July and a whopping 52% in August!
At Polygon, we too experienced a summer of strong sales activity, enjoying our best August in over seven years. We were also busy opening a number of new communities.
One of my favourites is Shoreline at the River District. Shoreline is our third community in this South Vancouver neighbourhood but is unique in that it is the first river front offering. We’ve already sold over 50 homes at Shoreline and it’s not surprising why. Planning is now underway for the new retail shopping centre with many brand name retailers lining up to secure space in what will be one of Vancouver’s finest master planned communities. In addition, new schools, neighbourhood parks, a community centre and miles of riverfront trails will soon begin to take shape. This is a community for the future and many smart buyers today are getting in on the ground floor.
The first six months of 2013 was a buyer’s market as a high number of listings combined with a “wait and see” attitude resulted in significantly slower sales activity. Motivated sellers were forced to adjust their prices downwards and an overall adjustment in the market has now taken hold. With today’s more sensible prices and the threat of higher interest rates looming, we have seen a sharp pick-up in sales. As most economists have long predicted, the period of historically low interest rates is coming to an end. We are beginning to see a slow recovery in the North American economy allowing central governments to end stimulus programs. This will ultimately lead to higher costs of borrowing. With five year mortgage rates already up 75 basis points this year, many first-time home buyers are jumping in while they can still enjoy an affordable monthly payment.
Looking forward, we expect the strong level of sales seen this past summer to continue through the fall. Well located communities close to transportation corridors, good schools and quality neighbourhoods will continue to outpace the market.
The Polygon Difference
More than 22,000 families across the Lower Mainland live in a Polygon home. From first-time buyers starting out, young families upsizing, or empty nesters contemplating retirement; more new homeowners in British Columbia start with a Polygon home.
Whether you’re looking for the convenience of an urban apartment or the amenities found in a larger master-planned community, visit our new home communities this weekend to tour our expertly decorated model homes with knowledgeable sales associates.
For whatever’s next in your life, start your search with Polygon.
President and Chief Executive Officer
Polygon Homes Ltd.