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As I wrote a few weeks ago, the price drops are starting to show in the BC real  estate statistics. Landcor just realeased it's second quarter Residential Sales Summary and it shows median price changes of between 3.8 to 15.6% across the province. The biggest changes have happened in Northern BC, where prices are down over last quarter anywhere form 1.2 to 15.6%. Other areas of more notable changes include the Okanagan (1.9-8.7%) and the Kootenays (1 to 7%), while Greater Vancouver and Vancouver Island have remained relatively stable despite increasing inventory (no more than 3.8% price changes).

As I have mentioned since the beginning of this slowdown, Albertan interest seems to still be quite strong despite the slow markets in Calgary and Edmonton. I have kept a tally on our site visitors and the percentage of Albertans visiting the site has consistently remained high (20-25% of Canadians visiting the site). Albertans have made a comeback this quarter over last with a 36% increase in purchases. They favoured (in order) the Okanagan, the Kootenays and Vancouver Island and the majority bought (in order) condos, vacant land and detached homes. On the down side, buyers from the US and other Canadian provinces have slowed. 

Current market conditions should soon reflect lower sales prices as sellers who need to sell are taking lower offers and causing some markets to waver.  

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The beginning of March marked a noticeable increase in inquiries to our sellers and traffic on the site, signalling a continued demand for B.C. waterfront property in 2008. Despite higher prices and a fewer sales of waterfront province wide in 2007 than 2006, traffic on the site has almost doubled since last year and shows no signs of slowing. The stats listed below show unique visitors to our site last January, February and March as well as this year's numbers:

January 2007 - 5, 862

February 2007 - 6, 601

March 2007 - 7, 405

January 2008 - 9,861

February 2008 - 9,323 (leap yr)

March 2008 Forecast currently 12. 000-13, 000

Furthermore, email inquiries have picked up and sellers are reporting increased interest from serious buyers in the last few weeks.

Despite the real estate slowdown in Alberta, we are still seeing 23% of our Canadian visitors originating there, over 50% of who are from Calgary. This is exactly the same statistic as last year during the same time period, so there is obviously still pent up demand for B.C. waterfront in Alberta. In addition to these numbers, the percent of US (yes, US!) and UK visitors has increased slightly year over year.

Although I am no psychic, I expect the market to be more balanced this year than in past years, with buyers in the million plus price range taking more time to choose their property. The sense I get is that there are a lot of buyers out there with anywhere from $300, 000 up to about $$650, 000 or 700, 000 to spend on a second home that they will retire to and when the right properties come available in this price range they are snapped up quickly.

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