Hey! You made it to another weekend, and you know what that means? Its time for another Friday Free-for-all, our open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:
–Borrowing back to troubling levels
–Experts predict bubble will remain
–Summary of that video
–Sorry about the sex
–Buy a house now?
–Construction price fixing?
–Stratify more basements!
–Bye bye best buy
–Toronto condo sales fall 47%
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
Dropping prices on condos are being blamed for pulling down home costs in Vancouver.
..because what could be worse than more affordable housing?
Prices on all housing types are falling with forecast for more price drops, Royal LePage is forecasting a 3% drop overall in 2013 but the largest drops so far are being seen in the condo market, which have fallen 3.6%.
“Buyers are waiting for that big decrease to happen but I think if they’re going to keep waiting for that, chances are they aren’t going to see it,” said Todd Talbot, realtor and host of W Network’s Love It or List It Vancouver.
That’s because industry experts say some sellers aren’t interested in making significant price reductions, and are taking their homes off the market.
“They don’t have to sell,” said Brendon Ogmundson, an economist with the BC Real Estate Association.
“You don’t find a lot of extra listings unless people need to sell quickly because of some financial catastrophe, and that simply isn’t in the cards, so what we’re going to see is normal demand and supply dynamics.”
Now I’m curious – what’s you best guess. Does the BCREA economist really believe that prices are set by people taking their property off the market, or by the properties that are sold?
Remember when rising prices in Vancouver were bringing up national averages? It seems times have changed, now the numbers out of Vancouver and the Fraser Valley are so bad they’re dragging down the rest of the province:
The total value of homes sold in B.C. dropped by nearly one-quarter in November, with declines in Vancouver and the Fraser Valley leading the slide.
The dollar volume of homes sold through the Multiple Listing Service in B.C. declined 24.6 per cent to $2.3 billion in November compared with the same month last year, the B.C. Real Estate Association reported Thursday.
But don’t worry, the BCREA expects prices to start going back up next year.. hey, that’s less than a month away!
Cameron Muir, BCREA’s chief economist, said that tighter mortgage rules introduced this summer had squeezed some buyers out of the market, but he expects sales to go up in 2013.
“When I suggest that we’re going to see an increase in sales levels next year, it doesn’t mean we’re going to return to the heady days before the recession. But the longer we see sales levels fall below the long-term average, the more likely we’re going to see pent-up demand (grow) in the marketplace, which may contribute to increased sales activity in 2013,” Muir said.
The number of units sold this November was down 17 per cent in the province from November 2011 to 4,680, while the average price was down 9.1 per cent to $480,891.
Read the full article in the Vancouver Sun.