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What is going on with the market?

Blog by Charlie Mackenzie, Personal Real Estate Corporation | October 24th, 2006

So what is going on with the Lower Lonsdale market?  You may have heard the suggestion that prices are leveling, and that the numbers of sales in the past few months are down in comparison to last year.  I can say that I have observed that the market has seasonally cooled, that the number of “multiple offers” (aka bidding wars) has slowed, and the average time to sell a property is taking longer.   Despite this change, many professionals believe this is a healthy shift toward a more balanced market.  When Cameron Muir of, Canada Mortgage and Housing Corp, addressed the question of a “balanced” market, he indicated Vancouver still has too low an average inventory (supply) relative to the demand that continues to exist.  Gregory Klump, Chief Economist at the Canadian Real Estate Association indicates that “The fundamentals underlying housing demand are positive”.  There are still plenty of prospective purchasers who desire real estate, but have yet to make the leap (many renters in the Central and Lower Lonsdale areas), accelerated in-migration from other provinces and countries, and optimism about the future Olympic games.  As a matter of fact many buyers find there is not enough inventory.  There has been very little new inventory come on the market in Lower Lonsdale.  There has been a few deals over the last few weeks with client who are looking to 'flip' their units by renovating them. 

The ever persistent demand for home ownership coupled with the limited supply of available property, and the increased, but still affordable financing options, and a strong economy are all working to forge the real estate market ahead, despite any perceived shifts and cooling offs. This slow down does not represent a decline, just a moderate rate of growth; “slowing is not a collapse” says Tsur Somerville UBC professor at the Sauder School of Business.  At this time, it is my belief that properties will continue to be bought and sold profitably and as of today, market sales data continues to prove this to be the case. 

As a response to changing market conditions, and to ensure my clients are able to command top dollar for their real estate in this more competitive climate, I have improved my web based marketing and extended my team of service providers.  My web sites now feature Google maps, virtual tours, and a blog, all of which permit my listings to be marketed world wide.  In addition, I have added a graphic designer and home staging consultant to my team of service providers, should a client be interested in learning how effectively stage their home or condo for maximum appeal when selling.

If you are looking to buy or sell real estate in Central and Lower Lonsdale contact Joel Carcone of Re/Max Crest 604-961-5365