Survey Says Consumer Confidence May Be Returning

Wednesday, July 15, 2009 12:48 PM

Vancouver, B.C.- A survey conducted for the BC Real Estate Association right after the May election, suggests consumer confidence concerning real estate purchases may be improving.

The May 2009 Mustel Group survey tracked several key measures asked in a January 2009 BCREA survey. Findings revealed that four-in-ten British Columbians plan or hope to purchase homes or properties within the next five years, with about half of these potential buyers expecting to do so in the next two years. A higher proportion plan to purchase in Metro Vancouver (46 per cent) than elsewhere (35 per cent), which may indicate that consumer confidence is now higher in the urban area. In the January 2009 survey, findings did not vary by region.

“We’ve had five consecutive months of increasing home sales, which may suggest that the optimism uncovered in this survey is being reflected in provincial home sales,” explains BCREA president John Tillie. “The May 2009 survey also revealed that people’s perception of the barriers to home ownership have also changed, which is good news for homebuyers, sellers and renters.”

Although affordability continues to be the key barrier to purchase, along with concerns about job security, lowering market values and general concerns about the economy, a slightly higher proportion of BC residents in the May 2009 measure indicated they did not have any purchase barriers at all. There was also a decrease in the number of people concerned about depreciating property values and less mention of general financial barriers.

The survey findings also revealed that making smart green choices at home is still top of mind for most British Columbians. When asked if they were more likely, less likely or about as likely to make green improvements to their homes compared to this time in 2008, one out of every two BC residents answered that they were more likely now to green their home than they were approximately one year ago.

Survey findings suggest the majority of British Columbians (65 per cent) would be willing to pay more for an energy efficient home.

Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Wednesday, July 15, 2009 12:48 PM in News by 250 News

Return to Home

Comments

Posted by: Loki on July 15 2009 3:25 PM

ha ha ha ha, the lies coninue! The misinformation industry is alive and well in world economics.

Posted by: MrPG on July 15 2009 3:45 PM

Agreed! The sky is falling! The sky is falling!

Posted by: darkken on July 15 2009 4:24 PM

How can anybody down there afford a house? The average house price is around 550 000 dollars. Does money grow on trees down there or does the old 32% of income mortgage calculation go out the window?

Again, lies, damn lies and statistics.

Posted by: dogs on July 15 2009 4:29 PM

Darken- not only can we afford these cheap 550-600k houses most of us own them out right.

Posted by: lost it all on July 15 2009 7:10 PM

dogs-is that because there is big money in raw log export?

Posted by: Loki on July 15 2009 8:31 PM

Here we go!
I have always wondered how a city of service workers could have so many nice residences? What are the occupations that own these estates?

Posted by: NMG on July 15 2009 10:07 PM

Some of the factors, I'm sure I'm missing a bunch:

- People got into their homes before the values increased by huge amounts (so that $750,000 home may have been purcahsed for $250,000 20 years ago).
- The Lower Mainland has a huge immigrant population, many of whom are extremely wealthy
- 30 and 40 year mortgages
- Many folks have basement suites or renters to help out with the mortgage
- Loads of people spend their money on the house and not jetboats, snowmobiles and new 1 ton trucks every 3 years
- Many people utilize mass transit and/or don't even own a car so they don't have to feed the 1 ton truck to commute to work every day
- City of service workers? It's also a city FULL of doctors, lawyers, engineers, accountants, scientists, software developers, stock brokers, salesmen, property developers, advertising executives, people employed in various forms of industry, construction (from small to HUGE projects), bankers, finance professionals, etc.
- Vancouver is truly an international city, much like New York or London. Many of these homes would be second or third properties purchased by folks who may actually live elsewhere and just spend time down there on a seasonal basis or when work calls.
- LOTS of people are content to rent and don't want to own a home

I know people love to think that we're the only thing holding the Province together, but open your eyes folks. As much as we do contribute a significant amount, the amount of money flowing in and out of the LML that is unconnected to resource industries is staggering. There is lots of dough to be made down there and when you have dough you spend it. Not everyone with the $600,000 house down there is broke. Quite the opposite. Many of them, by virtue of their earnings, may be in a better position than the guy up here with a $250,000 house. I'm sure there are loads of "house poor" people as well, but common sense tells us that people can afford the prices being paid, otherwise the houses wouldn't be selling and/or they wouldn't be getting mortgages.

Posted by: lmorge on July 16 2009 7:39 AM

NMG is correct. The Immigrant population in vancouver is extremely wealthy and they have inflated the house market prices because they will simply pay full price or more for a residence.

Posted by: govsux on July 16 2009 8:18 AM

Vancouver will tank. Has before, will again.

Posted by: He spoke on July 16 2009 11:55 AM

govsux, your talking about the Canucks.