“Downtown condo sales are down dramatically [YOY]… 23.5%… In 2011 Jan-Feb-March, we had 808 sales; in 2012 Jan-Feb-March, we have 619 sales. We used to have about 11.5 sales per day, now we have 8.5 sales per day… big changes.
But the pricing, as far as condo sales is concerned, hasn’t changed all that much…
Our listing counts are only up 5%; not a big deal right there…
But it goes to show you that people are not really motivated to buy right now…
And it goes to show you that sellers aren’t willing to drop their prices, and they’re not motivated to sell right now..
So, it’s a bit of a stand-off.. only time will tell if this is going to impact pricing… if people come more motivated to buy, or more motivated to sell… but as far as things are concerned right now, it just means activity is down…
Eventually, if this continues, it’s going to impact prices… and I can’t see it going up anytime soon… I can’t see buyers becoming more motivated because mortgage rates are already super-low… and sellers don’t really want to sell all that much, because if they bought in the last two years and they have to sell now they’re going to take a loss. So, it’ll be very interesting to see what happens in the next quarter.”
– Ian Watt, self-posted youtube video ‘Downtown Vancouver Condo Sales Down Almost 25% in 2012’, 9 Apr 2012
Nicely put (and, again, the gritty back-alley B&W production values are much appreciated).
This is exactly what’s going on across almost all property types and city regions at present.
Sales down; Inventory higher; Prices little changed.
A Vancouver stand-off.
Perhaps of particular interest to readers here is Watt’s observation that “I can’t see buyers becoming more motivated because mortgage rates are already super-low”. This adds some credence to suggestions (our own included) that the rate of change of interest rates is more important than the absolute rates themselves, and that limits can be reached even at very low rates.