A BUYER’S MARKET…
Inventory volumes have been easing down in the last quarter, but our MLS® inventory remains at a historical all time high, 16% higher than in the same period last year.
The sales volumes have been on a roller coaster in 2011 but are trending downward from our peak in March, with little blips up in both August and October. The average price of a detached bungalow dropped two percent year over year to $480,000 from $490,000. Standard two storey homes in Greater Victoria also slid in a year-over-year comparison, dropping 1.1 per cent to $465,000 from $470,000. Average sale prices are trending down in the last quarter in all housing types.
The Bank of Canada held its overnight rate at 1%. Canadian economic growth projections have been trimmed and growth is expected to decline in 2012. The bank expects the slack in the economy to persist into 2013 with softer inflation. This means for us mortals that interest rates are likely to remain stable for the next two to three quarters. Historically very low rates make borrowing for those qualified very attractive.
In this market there is a strategy for both selling and buying successfully.
If you are a seller, it is important to remember you are in a buyer’s market. Correct pricing is critical to achieving the highest price in a reasonable time period. Understanding today’s market is all about letting go of yesterdays pricing. The sale price to list ratio has dropped significantly since our peaks in April of 2011. Price, timing and presentation have become essential to achieving a sale.
If you are a buyer, these market conditions are in your favour. Know your financial limits clearly and stay within them. The search for the right home at the right price can take some time, be patient. Although listing volume is dropping, there are good homes coming to the market realistically priced everyday. Even in a buyer’s market if a house is priced well, presents well and is in a good location, it tends to sell quickly. Don’t drag your feet! Be prepared for them and act so you don’t miss the opportunity.
Do you need to design a strategy that will fit your real estate needs? …“Let’s Talk”.
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