As expected of a longtime Real Estate Agent, every day someone asks me "What's happening in the Real Estate market?". The doom and gloom in the media seems to have died down, as reductions in transaction numbers and softening prices are no longer "hot news".
Here's my typical response today: The market isn't white hot any longer. Sales are still happening- to the tune of over 10 sales per day in the Capital Region- and prices are remaining surprisingly stable. What the market feels like to me is about 15 years ago. The sales numbers are relatively similar (prices, naturally are quite different) but most importantly, the "tempo" is similar.
Agents who have been licensed for 10 years or less have a different experience of the marketplace. The local market started its upward trend in 2002, with prices doubling at 2007. Sales numbers were exploding and the market was crazy! During that time, an Agent's biggest frustration was finding property for their client or clients. Most had sold their home quickly and at strong dollars but consequently had to rush to act on new inventory that was coming up. Multiple offers were common, with buyers often losing out on several before finding success.
When 2008 rolled around, things started to change. Properties were staying on market for longer and expiries or unsold properties were outnumbering successful sales. Then the crash happened of late 2008/early 2009. Prices tumbled and virtually everything stalled. From an Agent's perspective, it was very interesting observing the specific areas which dried up and those which continued to remain strong. A testament to which locations weather the storms better than others.
Then 2010 arrived: sales numbers did not catch up to prior months but strangely, sales prices increased and the all time peak of average house prices were seen in the last quarter of that year at around $640,000.
Fast forward to today: unsold properties outnumber sold properties so the success rate is less than 50%. Properties take longer to sell, with far fewer showings than in recent markets. Open houses are quieter and inquiries on print or sign calls has dropped to nearly nil. But sales continue. Properties priced well in the market still sell, often within the first 2 weeks on market. Multiple offers are still seen, again on properties which are deemed to be "hot buys". There are just fewer lookers out there and less activity. Just like 15 years ago.
Many owners now are at the point where they could not sell today for what they purchased at back in 2008-2011. In fact, prices now are inline with the 2006/2007 market. What is in store? Optimistically, we feel prices will remain stable in coming years. For those waiting until the market picks up again, that wait might be as long as 5 years from now.
We'll still see sales in Victoria, though. People move because their lives are improved in some way by a change in residence: growing family, downsizing, relocation, etc. And they'll still move, regardless of what the current market is doing or what the numbers are!
Call or email me for more discussion on this topic or to chat about Real Estate in general.
Visit my YouTube channel, where you'll find weekly sales updates and resources including over 30 short Educational videos for buyers and sellers.
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