Tuesday, May 1, 2007
Train wreck a coming?
Purely speculative and anecdotal evidence on my part here: but in the low-end condo market that we get daily updates on, in the past 5 days, for every new listing there is a corresponding price change for another listing. Which basically means prices are a coming down (slightly) and competition is heating up. Bring it on.
Average price drops are $5K on $220K places. When we see $10K come off, we get itchy to make the phone call to the realtor. Then we think again... we're waiting to see those $220K places hit $199K again. That's only a 10% drop, but 10% in a "hot" market is a big drop. And 10% in a "balanced" market as the BCREA and CREA are wont to call it these days is an even bigger drop.
What's that I hear? Sounds like brakes on the rails. I hope the driver got them on in time to avoid the big crash...
Disclaimer: as much as we hope for a significant correction in the RE market, a big crash has long term economic consequences that could hurt a lot of people, including us, and we'd never wish that on anyone, including us.
I'll get mid-to-end of April market numbers in our segment up later this afternoon... just was happy to read my updates and see these changes, thought I'd share it with you to possibly brighten up your morning coffee breaks.