Quote:
Originally Posted by whatnext
Could the bubble finally be bursting, a year after the market started to slow?
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Boots on the ground, my sense is that we're
potentially on the cusp of some real changes here. It's like in the cartoons when the Coyote runs off the cliff and hovers mid-air for a couple seconds before plunging into the canyon. Are we that coyote, hovering mid-air? Possibly.
Sales have slumped this October 30% below the seasonal average, and anecdotally, I've noticed a lot of developers offering more lucrative sales incentives to both buyers and agents. As well, there seems to be an abundance of downward price adjustments, esp. for pricier single detached homes and homes south of the Fraser. Meanwhile, a sharp rise in new listings has filled the inventory gap that has characterized this market over the past several years.
It'll be interesting to see where this goes. I speculate that we'll see more softening of prices, at least through the slower winter months. Meanwhile, there are still record number of people moving to the region who need homes. Ceteris paribus, I suspect that once we start to see rates relax, we'll see rapid price gains again.