Victoria Real Estate Market at a Standoff as Prices Remain Steady

Ron’s candid thoughts on today’s market in Victoria: Following is our Victoria Real Estate Board News Release which in my opinion gives a sugar coated outlook of reality. The market is anything but steady with sales numbers down significantly and prices too, driven down buy distressed sellers competing for the few predatory buyers who are seizing the opportunity. Statistics are misleading and the 64 average days on market does not include the prior listings of the same properties or those that have not sold. By my estimate the average days on market is closer to 180 days including just the successful sales. Furthermore, the average sale price reported as 96% of list is based on the final listing price, not reflecting the original price or prior listing attempts. My quick review of the numbers shows more like a 85% of list price on average based on the original asking price. This is NOT all doom and gloom though. It is an excellent time to buy, especially to trade up! For a personal consultation of your options in this market please call today! Victoria Real Estate Market at a Standoff as Prices Remain Steady October 1, 2012 VICTORIA BC - REALTORS® across Vancouver Island are experiencing a "wait and see" attitude amongst buyers and sellers alike. The result? Prices remain steady but sales numbers are down in some categories. Total MLS® residential sales for September 2012 were 400 compared to 435 in September 2011. During the month, 216 single family homes sold throughout the Victoria Real Estate Board's region, just 28 fewer than the 244 sold in September 2011. The average price for single family homes sold in Greater Victoria last month was $589,361, down from September 2011's average of $622,393. The median price is down by $16,500 to $517,500 over September 2011. There are 5,025 active listings. "We are at a bit of a standoff in the Greater Victoria real estate market," says Carol Crabb, President of the Victoria Real Estate Board. "Buyers are waiting for prices to go down, but there are no economic indicators to show that will happen. Sellers are pricing their properties reasonably for the current market, which is reflected by the fact that single family homes are selling for an average 96% of list price and the average days on market remains 64. "The median price of a single family home is only 1.5% lower than last year and that number has held steady for the last five months," Crabb says. "Interest rates are also holding, but should they increase by as little as 1%, that would negate a 10% drop in purchase price. People shouldn't wait for prices to drop, because we never know when interest rates will be increased to stimulate the economy." Condominium and manufactured home sales are virtually unchanged over September 2011 (approximately 1% each), while townhomes sales have declined 10%. Total Waterfront Single Family Dwellings sold: 18, up 7 sales from 2011 Total Non-waterfront Single Family Dwellings sold: 198, down 35 sales from Sept 2011 Single Family Dwellings sold over $1 million: 14 (0 over $2 million) Stats quick reference