May 30, 2011
Leong & Roozendaal (Re/Max Camosun)
The single family home and the condo market continue to operate quite differently from one another. On one hand, the market for houses is quite stable: prices are steady, volume is increasing slowly, and houses are selling within a reasonable amount of time. However, the condo market is quite challenging. Prices are holding steady, but at the expense of sales volume. In short, sellers are holding the line on their asking prices with the result that many fewer units are selling. To illustrate my point, the sales volume for condos is off by 38% from the peak at the end of March! If I owned a condo that I wanted to sell, I would drop my price slightly and get my unit sold. I think it is quite unlikely that demand will suddenly increase and catch up to the optimistic asking prices.
On another note, tomorrow is a big day as the Bank of Canada decides if they will hold their interest rate, drop it, or raise it. An increase would increase mortgage costs and have a negative affect on property values, so let’s hope for good news.
Over the last 30 days, 310 single family houses were sold, up by 11 houses from last week. The median price is down $15,500 to $569,500. The average house was on the market for 32 days.
In the same time period, 115 condos were sold, down by 6 condos from last week. The median price is down $100 to $294,900. The average condo was on the market for 33 days.
There are now 2,186 houses for sale, up by 29 from last week. Condo inventory has risen by 15 to 1105 suites.