It's a bird! It's a plane!
We can expect media articles full of panic tomorrow once the press reports on real-estate data, but it's anything but a disaster scenario.
Exactly. Just ask any Realtor. It's always a great time to buy. And to sell.
Posted 04 July 2022 - 01:18 PM
It's a bird! It's a plane!
We can expect media articles full of panic tomorrow once the press reports on real-estate data, but it's anything but a disaster scenario.
Exactly. Just ask any Realtor. It's always a great time to buy. And to sell.
Posted 04 July 2022 - 02:18 PM
Best case would seem to be one of Victora's consolidation periods. I can't imagine anyone thinks we can go higher with these rates and a 40%+ move in the last 3 years.
Posted 04 July 2022 - 03:00 PM
Edited by UDeMan, 04 July 2022 - 03:05 PM.
Posted 04 July 2022 - 09:45 PM
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Posted 05 July 2022 - 05:55 AM
Is 4.x% the end of the world, though? And variable rates are still at 2.5-3%.
Inflation is also eroding the value of the mortgage debt.
It might not be the end of the world, but simple math tells us a move from 1.5-2.5% creates a larger move in individual buying power than a move from, say 4-5%.
Posted 05 July 2022 - 05:59 AM
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Posted 05 July 2022 - 06:03 AM
Exactly. Just ask any Realtor. It's always a great time to buy. And to sell.
Some real estate agents are seeing prices starting to drop, with more listings in Greater Victoria’s real estate market and fewer sales.
Daniel Clover, a real estate agent with Re/Max Camosun, said Monday that he’s hearing from other agents who are dropping prices on some properties, including a recent case where a condominium’s price was reduced by $30,000 before it finally sold.
The number of active listings climbed to 2,059 at the end of June, up from 1,776 last month and 1,375 in June 2021.
At the same time, sales through the Victoria Real Estate Board declined to 612 last month from 761 in May and 942 in June of last year, the board said in its latest monthly report.
But Greater Victoria remains a popular destination and bidding wars are continuing for entry-level properties, Clover said.
The change in the market is due to a combination of factors, including rising interest rates and buyer fatigue, said Clover, who has been in the business 37 years and has had buyers cry on his shoulder in disappointment at losing out on a home.
https://www.timescol...r-sales-5547507
"Avoid crying on my shoulder, buy today!"
:
Edited by Victoria Watcher, 05 July 2022 - 06:04 AM.
Posted 05 July 2022 - 06:06 AM
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Posted 05 July 2022 - 09:34 AM
TD says housing prices to drop an average of 20% with the highest drops in BC and Ontario. Provincial Housing Market Outlook: Home Prices to Fall Further Under the Weight of Higher Rates (td.com)
Posted 05 July 2022 - 09:36 AM
Inflation is also eroding the value of the mortgage debt.
That would presume that your income keeps pace with inflation. Works for the Government as taxes are tied to prices but not so much for the average worker who will be getting 0% (if we slide into recession) or 2%-3% raises.
Edited by spanky123, 05 July 2022 - 09:36 AM.
Posted 05 July 2022 - 11:00 AM
The change in the market is due to a combination of factors, including rising interest rates and buyer fatigue, said Clover, who has been in the business 37 years and has had buyers cry on his shoulder in disappointment at losing out on a home.
Fundamentally what drives pricing is # of buyers vs # of sellers. At the moment people are being told that prices are coming down, interest rates are going up and we are entering a recession. As a result, people are sitting on the sideline unless they have to enter or exit the market. Until we see one (or more) of the predictions prove to be false then demand will continue to be weak.
I remember back in the mid 90's when a recession and weak demand forced about 2/3 rds of realtors to find other jobs.
Edited by spanky123, 05 July 2022 - 11:02 AM.
Posted 05 July 2022 - 02:34 PM
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Posted 06 July 2022 - 06:40 AM
^ There are always people who need to buy due to relocation, personal issues, etc. I am suggesting that the rest are going to be on the sidelines if they think prices are dropping 20% in the next year.
Posted 06 July 2022 - 06:49 AM
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Posted 06 July 2022 - 06:58 AM
^ I am only referring to what media and economist reports are saying. Many buyers today are too young to remember prior cycles.
Posted 06 July 2022 - 07:05 AM
Posted 06 July 2022 - 07:18 AM
^ Agreed although look at the construction going on in Nanaimo and north. I wouldn't at all be surprised that the majority of retirees are not bypassing Victoria and moving there.
Posted 06 July 2022 - 07:37 AM
I have friends in Toronto who were seriously looking and spent a few weeks here recently. They came to the conclusion that the city is becoming far too trashy (their exact wording was less kind). Reputation can spread quickly.
Posted 06 July 2022 - 07:47 AM
Luckily, there are 12 other municipalities to choose from, just on the south Island.
What typically happens is the monied retirees situate in Greater Victoria/Cowichan. These people still value an international airport nearby, major hospitals and some semblance of cosmopolitan-ess that Victoria offers, regardless of how dirty downtown streets are (think arts, concerts, events, dining, prestige, etc.). You don't really have that in Nanaimo and points north.
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