Today, VREB set the ball up for all us bears to step up and smack it out of the park. And all you have to do is NOTHING. DON'T BUY. WAIT. IT'S HAPPENING!
These are busy months in RE. Prices should be creeping up along with sales. But the only thing creeping up is listings. Prices and sales are headed down. You can grease the slide by doing NOTHING. Except if you own a property, especially a second or third property that you currently spend an extra $1000 or so a month on subsidizing someone else's living, you can grease the slide by LISTING that money-losing property. And get out while the getting may almost be categorized as good.
My favourite line here is "strong demand for homes that are realistically priced." What this actually points to is two things. First of all, no one can afford anything but the lowest end of our market. Realistically priced means that only homes under $475K are realistically priced. Given that a full 3/4 of homes in Victoria are above that mark, then 3/4 of home owners are out to lunch on what is realistic for their properties. And secondly, why is anyone buying right now when clearly the two-month-does-not-a-trend-make is telling you that the longer you wait the cheaper these houses are going to be. Feels good to be a bear today. Even if I am getting a bit ahead of myself.
Victoria Real Estate Board President, Tony Joe, says the market continues to be well-balanced with strong demand for homes that are realistically priced coupled with a growing selection of available properties for sale. "The total number of properties available for sale rose to 3,311 in February - a 13 per cent increase over February of last year," noted Joe. Last month over 27 per cent of single family homes sold for under $450,000 while nearly 37 per cent of condominiums sold for under $275,000. At the higher end of the market, Joe noted that there were nine sales in Greater Victoria and one sale on the Gulf Islands of over $1 million.
The average price of single family homes sold in February in Greater Victoria was $587,295; the median price was lower at $543,500. The six-month average for single family homes was $588,826. The average price of all condominiums sold in February was $333,408; the average for the last six months was $334,577. The median was again lower at $299,450. The average price of all townhomes sold last month was $422,607; the six month average was $426,685. The median price was $395,000.
MLS® sales last month included 316 single family homes, 177 condominiums, 73 townhomes and 13 manufactured homes.
Personal anecdote related to a previous post about how we almost bought two months ago: the condo sold for $13K below asking, which means had we taken the support we were offered we would not have really received the full value of the support. This point is not meant to belittle the significant value of the help that was offered to us. But seeing as how in a sudden, unplanned turn of events, we would have had to list this place as soon as it closed, we would have either lost out financially or sentenced Ms.HHV to having to turn down a great career moving opportunity. That place would have cost us $25K (sold less plus the Realtor commission) in two months. Crazy when you put it into perspective eh?