Ron’s Real Estate Outlook

We have a market. Sales are continuing, just at a much diminished rate, 55% fewer in October 2008 than October 2007. There is a new reality to our Victoria market. As I have seen “twice” before in my almost 30 years of selling real estate, markets peak and correct in seven to nine year cycles. We have peaked and the reality is we are adjusting now; the cycle has just been a little extended. Yes, circumstances are different this time, as they were for their time with the previous two corrections, but “uncertainty” is the common thread. How long the uncertainty carries on determines the recovery period. This time we are faced with global economic stress which we are bombarded with daily. A climate that makes dispelling uncertainty a distant goal.

Looking at the past corrections gives hope to the idea that this one too will pass. Historically Victoria has not lost value dramatically but pricing has lowered and the market has firmed with selling times becoming extended. If you want to sell in this market you need to price below the perceived market to attract a buyer who recognizes the value of your offering. If you are re-purchasing you are exchanging relative value and will be purchasing in the same relative market conditions, paying proportionally less on your purchase. If you are selling a property and not reinvesting into the same market, the sooner you go to the market and realize your equity or pay your mortgage debt the further ahead you will be.

The uncertainty factor and the length of time for confidence to rebuild in our market is the unknown. My feeling is it will be a longer time rather than a shorter time before widespread confidence reappears. Life goes on however and the sooner we recognize the new normal and get back to living life instead of waiting, the sooner we will work through the current global concerns.

There is a market in real estate in Victoria today. Should you, or anyone you know, need some advice on how to besttake advantage of the current market conditions, I would be happy to put my near thirty years of experience to work for you or anyone you refer. Call me…Let’s Talk.