Well, the headlines are out, the bears are saying "I told you so" and listing inventory is soaring. In his recent Facts by Email, Ozzie Jurock noted a very fussy buyer's market on the Sunshine Coast with some fabulous waterfront homes now available for under 1 million (for a different picture, click here for details on the waterfront market there last year).

Here in Courtenay, we have started to see price reductions and other areas of the province are experiencing the same thing. In Victoria, for example, according to the blog at www.cheaprealty.net, there is apparently a 20 month supply of properties over 1 million for sale right now and a recent Globe and Mail article suggested that Victoria's real estate is 30-35% over valued.

Negative headlines, over supply, higher interest rates, banks tightening up on lending...all of these factors have combined to mark the beginning of a downturn in B.C. real estate and although prices are already going down slightly, the stats have not yet revealed much of a change. I expect that shortly, the headlines will start to reflect price drops in many areas of BC. I don't expect them to tank rapidly, but rather edge down to a more affordable level slowly. After all, it is just another real estate cycle (albeit we had a longer and crazier upswing than normal) and prices are bound to drop a bit as the cyclical nature of the market returns.

So what does this mean for the B.C. recreational market? I have always maintained that the buyers are still out there. And why wouldn't they be? B.C. still has some of the most pristine and beautiful waterfront in the world, in a politically stable country with a very high standard of living. Moreover, internationally, B.C. waterfront still represents excellent value for many international buyers.

Throughout this slower real estate year our traffic has increased by at least 30% and there are still inquiries going through the site to our sellers and properties selling. Buyers are simply taking longer to make decisions and rightly so, given the market conditions. The days of multiple no subject offers are pretty much over and this, in my humble opinion, is a good thing. In fact, the best time to buy is often in a downturn when nobody is talking about real estate and an over supply of homes are languishing on the market. This is when the true investors and saavy buyers get in on the market. Then, assuming they can hold on until the next upswing, they can potentially make a small fortune when they sell!

So, as I have mentioned recently, if you are a seller, price your home competitively and make sure it shines above the competition. Then advertise, advertise, advertise. Try to make sure you get a plan from your real estate agent prior to listing detailing exactly what they will do to advertise your property. If you're a buyer then take your time because now you can find the property of your dreams without all the pressure.

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