Home Prices Down; Affordability Improves in BC

According to the latest British Columbia Real Estate Association (BCREA) report, residential sales by dollar volume declined by 39 per cent to $2.1 billion in September, compared to September 2007. Residential unit sales were down 34 per cent to 5,107 units during the same period. The average MLS® residential price in the province was $412,149, down 7 per cent from September 2007.

“Weaker consumer demand and a large number of homes for sale are having an impact on home prices in the province,” said Cameron Muir, BCREA Chief Economist. “Despite relatively strong fundamentals, consumer confidence is low. The global liquidity crisis and volatile equity markets are intensifying this sentiment, causing many households to pull back spending on major purchases.”

“However, affordability is improving,” added Muir. “The carrying cost of the average home in the province is now lower than at any time since the end of 2006.”

The Million Dollar Question: Should you buy now or wait and see?

A client of mine, who is relocating to Vancouver, recently asked if she should wait a little longer to see if housing prices fall further before buying a home. Will the market hit bottom? Should she buy now or take the wait and see approach?

This is my feeling and this is what I told her:

I don't think there's any urgency at all, but I would definitely see this as an opportunity to find the perfect place that you're going to love living in for the next couple of years. The number of listings will decrease as Christmas approaches, at the same time there will also be less Buyers so the chances of getting a bit of a deal become greater if the right property comes on the market.

There's no rush to find you a place and we're happy to continue showing you properties for as long as it takes for you to feel like you're buying the right property at the right time. Seeing what's on the market with you is what keeps us up to date on pricing and values...

I think we have a pretty good idea of what you're looking for and we'll certainly make an extra effort to reach you if a great home come up... and in the meantime, we can send new listings along to keep you up-to-date but we certainly don't want you to feel like you have to see or respond to them at all.

My opinion is that there's always a reason to buy as well as not to buy... Personally, I've always felt more comfortable 'being in the market' and taking advantage of a good opportunity...

If you're buying something within a 10 miles radius of the city and you have a little piece of dirt under you, I don't think you can really go wrong.