At what point will sellers start competing with each other in the rush to the exits? This from Drachen at Vancouver Condo Info May 21st, 2008 at 10:42 am -
“A friend of mine owns two condos right now and can barely pay the mortgages. Her realtor, who she swore was a close friend and had her best interests at heart, is suddenly moving to Australia, and has apparently sold off all their local holdings.”
there are some good buys in the market at present. becuase of the high inventory, the very motivated sellers are pricing their property at 2007 prices and receiving offers. there are a lot of overpriced listings…sellers who aren’t yet tuned into the current market and are not motivated to sell. their listings will eventually expire and there’ll be better balance in the market. in the meantime, buyers can seek out the motivated sellers and buy right.
maggie – Thanks for your comment. There are now a significant number of Vancouver RE analysts and commentators who believe that the market would have to return prices to well below those of 2007 for there to be a return to reasonable value. The rising inventory is almost definitely the beginning of such a return to normal value.
Follow some of the blogroll links for relevant commentaries.
- vreaa
I think Maggie is dreaming in technicolour…well, and pumping the local RE market because she is in RE sales…I am one of many many people I know who CAN afford at today’s prices (or last summer’s to acknowledge her comment)…but um…last summer’s prices ARE NOT A DEAL. This bubble is due to correct on avg I would say 30-40%, some parts of the market maybe only 20-25%, and some more like 50-60% (think all that over-priced North Van stuff)……those on the sidelines are not waiting for last yr’s prices…we are waiting for the specuvestors to storm the exits, as they have in all the other parts of the NA market, we are the last ones bubbling….and if the bubble does not burst, the dream is real and not in technicolour, we will still NOT buy at these kinds of levels because it is financial suicide……there is no upside in this market for at least 10 yrs…better off to rent at one-third (or more) the cost (if you are in something bigger than a 1 br) and save your money as the ING guys says…..
Maggie is technically right. Sellers who adjust downward to a price that would have worked in 2007 are getting a sale. Why? Because not all buyers are tuned in or care about the impending crash. Some buyers have sold their own homes already and feel they must buy something. People transferring here often feel like they don’t have time to bargain, etc.
However, buyers who don’t have to buy or are savvy should wait it out, if possible. Listings are WAY up while sales are down. Price reductions come across my desk every day. The last bubble in Victoria took 6 years to bottom and 10 years to get back to its previous peak, so patient buyers will be rewarded.