Wednesday, November 28, 2007

Will Insanity Prevail? | Has The Market Turned in BC

Condo sales have slumped in Vancouver according to Price Waterhouse Coopers. 50% of all activity in downtown Vancouver is due to speculators. Condo sales have dipped by 33% from the previous quarter states PWC.

Unsold inventory in Burnaby/New Westminster grew from 315 units in early July to 825 units at the end of September, while sales in the Downtown/West End area kept pace with new product coming on the market.

As well, low-rise condo sales plummeted by almost 60 per cent to 620 units from 1,480 in the second quarter, reflecting slowing demand in south-east suburban markets.

The decline in sales has been reflected in the asking prices for low-rise condos.

And finally, the Sales of townhouses also dropped 45 per cent to 370 units. PWC does not expect to see major change in these third-quarter trends.

Has the bloom gone off the rose. If you are in the market it would be wise to check current pricing. This decline in the market may signal a return to more reasonable pricing for home buyers with poor credit.

Duncan Seward is a mortgage broker in BC whose focus in on the second mortgage loan clients with bad credit in BC.

No comments: