“There’s yet more indication investors are finally getting the break they need to beef up their portfolios, with the B.C. Realtor association confirming a near-8 per cent dip in the value of properties sold during the first month of the year.”
“Provincial sales activity was down in January from year ago levels,” said Cameron Muir, chief economist with the British Columbia Real Estate Association. “Increased market activity outside the Lower Mainland in January was offset by fewer sales in Vancouver and the Fraser Valley” (where residential sales declined by 10 per cent). …
“That overall drop in prices bodes well for investors across the Lower Mainland, who have had acquisition plans put on hold over the last year, as sellers ratcheted up asking prices in order to capitalize on foreign demand for Vancouver-area properties.
That demand has since waned, say analysts, and sellers have finally started to bring down their asking prices or take their properties off the market, effectively encouraging others in the market to drop their own pricing.
BCREA’s January numbers will likely add to that momentum.
Yet more sellers will have to leave the market to increase demand from investors and other buyers in B.C., argues one industry veteran.
“Despite the low interest rates clients are in no rush to buy,” Morris Briglio, president and senior mortgage consultant with The Mortgage Advantage, said. “There’s simply too much inventory on the market.”
- Excerpts from ‘Cooling market offers investors a ‘in’, Canadian Real Estate Magazine, 15 Feb 2012
We’ll register this as the first “It’s-only-a-flesh-wound” sighting of the down-cycle that is now underway.
Note how peppy lots of the commentary is: “getting the break”; “beefing up” RE “portfolios”; “bodes well”.
Note also the fascinating logic from the ‘industry veteran’: “Yet more sellers will have to leave the market to increase demand from investors and other buyers”.
Sure, I can just see those sellers stepping back: “No, please, you go first.”