The Landcor BC 2008 Residential Sales Summary was released earlier this week with some surprising statistics. Although there was an overall (anticipated) 28% decrease in the number of residential sales in BC in 2008 (over 2007), the average sales price increased 10% over 2007. This sounds hard to believe amidst all the negative media out there, but is most likely due to the sales in the 1st and 2nd quarters weighing heavily on the stats. The price drops we have seen in recent months are often not reflected in statistics until a later date so I would expect them to show up in next years' stats.

Other highlights of the report are detailed here:

    *  Detached homes and vacant land had the greatest decrease in number of sales and condos the least.
    * Q4 was miserable with a 36% drop in sales over Q3.
    * Out-of-province buyers down by 37%.

A note on the out of province buyers: Albertans still remain the leaders. 69% of out of province buyers hailed from Alberta in 2008. The most popular areas for them to purchase included the Okanagan and the Kootenays and condos and vacant land were their most popular choices for types of real estate to buy.

Conclusion:

As I mentioned above, the price increases seen in 2008 were in my opinion a result of strong sales last Spring before the market really started to take a turn for the worse. I would expect to see decreases in prices as we review 2009 statistics.

The good news is that since prices have started to become more competitive in recent months, the buyers have started to return to the market. Many of our clients are reporting more inquiries and deals going through in the last month. In addition, many sellers are becoming aware that the market has changed and pricing their homes well. Hopefully this will be enough to give the market some pep again and we'll avoid a situation similar to what they have in the US (although things are starting to look up there again too in some areas).

 

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Despite continued negative real estate reports in the media, we are starting to see increased interest in the BC waterfront real estate market again. While site traffic remained higher year over year, August-December 2008 were exceptionally slow in terms of the number of inquiries that went through the site; however,  in mid-January we saw a sudden increase in serious inquiries. This month, we are forecasting more unique visitors than we had last February (when the market was still hot). With interest rates at extreme lows (5 year mortgages available for 4.02) and average house prices starting to fall, it is beginning to make sense to jump into the market again.

While interest has picked up and I believe there is some pent up demand, the buyers out there know the market well and many are looking for deals. With forecasts calling for a hunkering down and a year or two more of these tough economic times, buyers who are ready to make the jump into some new real estate want a good price.

If you are a buyer, you can find some well-priced (under assessed value, foreclosures, etc...) waterfront properties in our "Hot Properties" newsletter by signing-up here.

If you are a seller and need to sell, make sure your house shows well and is priced aggressively. Also, you can review review Ozzie Jurock's article 10 Ways to Make Your Home Sell Faster by clicking here.

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RECESSION RATES

We understand with the current economy, agents are faced with a tough decision. Although you need to advertise your real estate, sometimes the cost of getting to the niche, luxury market can be prohibitive. Although are regular rates are already one of the most cost effective ways to reach BC waterfront and luxury home buyers, we have decided to give our subscribing agents a break for a limited time to help get you through these turbulent economic times.

35% OFF OUR REGULAR RATES!

SUBSCRIPTION TYPE	LENGTH	PRICE
ELITE	1 YEAR	$629
PREMIUM	1 YEAR	$487
BASIC	1 YEAR	$389

 

The above recession rates are subject to GST. Recession rates include most of the same benefits of our regular advertised packages; however, they do not include links to your web site/virtual tours, etc..., complementary property upload at the onset of a new subscription nor complementary access to our new luxury real estate web site for the duration of your subscription. 

Recession rates no longer valid as of July 2009

1Y$629

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