More Promising News!

(Hope Bay - location of Dockside Realty on Pender Island- courtesy Sam Boyte and Dockside Realty)

The Victoria Real Estate Board (VREB) released a News Release this month with the headline " Property Sales in August Follow Usual Summer Trend". In the report it states that the number of property sales in the Greater Victoria region (including the Southern Gulf Islands) slowed during August but sales (the all important figure) were again significantly higher than in 2008. Prices have remained stable with even some increase in single family homes. There was a total of 764 properties sold in August through the Board's MLS system, down from 933 in July 2009 but up 48% compared to the 517 sales in August last year. That's a very encouraging figure, and further evidence I think of a distinct firming of the market.

VREB President, Chris Markham, says it is usual for sales to slow in August "Many people take holidays in August," Chris notes, "so it is not surprising to see sales soften somewhat. We are pleased, however, to note the significant increase in sales last month compared to August of a year ago which gives further evidence of the strengthening of the market." 

Significantly, there were 3509 properties for sale at the end of August, down 25% from the 4657 properties available in the same month a year ago. The decline in the number of properties available for sale will continue to place some upward pressure on prices," said Markham. Sales so far in 2009 are 6% higher than during the first eight months of 2008.

All of which is good news for the real estate market and sellers, but not so good for buyers. The above trends reflect a gradual balancing of the real estate market which, as Mr. Markham notes dryly, will put "some upward pressure on prices." In other words, if you are serious in purchasing property and have the financing, I wouldn't wait much longer. I predict this market will continue to balance over the winter, and by next February we will see a hardening of positions from sellers as they sense the change in the market. I was involved in very few multiple offer situations in 2007 and 2008. In the last 2 months I have personally be involved in three multiple offer situations on Pender Island alone.

Those regular readers of my blog will know I have been very confident in predicting this market change, exhorting buyers to buy before the market swings back. I'm glad to say that many of my clients have listened to me and taken the plunge into property ownership, but others have not. As a realtor, I have negotiated some great deals in 2009 for those of my clients with the money and inclination to own property on our beautiful island, but I'm already noticing that sellers are not just taking the first offer anymore. There is also an undercurrent here (easy to spot in small communities) that the market is balancing and seller positions are beginning to harden (it's the old 'if we miss the first bus, there will be another one later' attitude). I even had one of my listing saying that if their home didn't sell by this winter they will re-list the property at a higher price in January. I had to agree with this strategy.

 Time will not be on the sides of buyers for much longer, so Get A Great Deal, Buy and Hold while you still can.