Real Estate Sales Remain Steady in BC
There was an article in The Morning Star Newspaper this morning ( Page C7) written by Tom Fletcher of Black Press giving an overview of what is going on in BC Real Estate stating that while the 4 year boom has finally cooled, there are few signs that property values will lose significant ground. So.. if you are waiting for prices to plumet.. don't hold your breath.
With the government actively marketing BC as "The Best Place on Earth" BC remains an attractive place to move to for work or retirement - and that is expected to lessen the blow of things like the downturn in the forestry sector, and the continuing decline in US tourism.
We do see more sellers trying to cash in on the increased property values. They are being challenged with the fact that there are fewer people able to buy as the prices have risen out of the affordable range of many buyers.
Small price drops have been seen in the Fraser Valley and Metro Vancouver in the last 2 months, but year over year - prices are still up by single digit amounts. The Credit Union Central BC briefing last week forecasts that will continue for the near term, and feels that the price cycle peak likely happened in February. They also forecast the Bank of Canada will move the intrest rate upward to counteract inflation perhaps as early as October. ( It seems to me that lending rates always go up in the fall)They anticipate this, along with more available listings will motivate more buyers as we head into fall. ( In addition the changes by CMHC may also lead to some action by those who can not get into the market without a 0 down or 40 year mortgage.)
Province-wide, home sales were down 14% in the first quarter of 2008 - and new listings were up 24%. The BC Real Estate Association predicts that the residential average will grow 9% in 2008 and a further 4% in 2009, based on in-migration and continued strong economic growth in BC.
Sales in Victoria were stronger than in the Lower Mainland in June, and while slowing, may not have peaked yet.
The Kootenays - which recorded the biggest price jump in BC last year expects to see less pressure as the Calgary and Alberta markets have stablized. BCREA forecasts a 13% increase in prices in the Kootenays.
In the Okanagan, May home sales were down by half (volume) from the same time in 2007, with the average house price up 10% over May 2007 - and closing in on the $400,000 mark. The inventory of active listings surged by 27% in May, with no sign of a decline in pricing.
Meanwhile - Northern BC sales are down about 25% and they also have more homes on the market.
Check out the North Okanagan stats for June post for more information about what parts of the market are moving in this area.
So - what does this mean for local buyers and sellers... It means that the competition pedulum is no longer as strong on the Sellers side. Sellers are faced with thier home being placed among more comparables. Buyers are seeing more choices available. This is not necessarily making the decisions any easier for buyers. Houses that do sell are selling in the same amout of time they normally do at this time of year. Inventory levels also are always higher at this time of year. When all is said and done - it still comes down to price and motivation on both the buyer and seller ends.