Observation in today's Vancouver market
The only hot topic these days is all about the world economic slow down. However, when I went to Whistler over the last weekend, I didn't feel that at all. I was trying to attend the Wine & Food festival but end up empty handed. 900 tickets were all sold out. Hotels were booked everywhere. The only restaurant we could book for dinner costs $150 per person. Thank heaven my friend got a property in Whistler or else we would be just driving up and down for nothing.
I'm so happy to read from the Vancouver Real Estate Board stats that the October listings has dropped 3% vs Sept. I applause to those Sellers who take their property off the market who do not have to sell. I'm currently working with a few serious buyers. What I have noticed is more and more listings are off the market & sellers decide to rent it out simply because they have to face the reality that they just can't make a profit on top of the future value they paid for it, when they bought their condo through pre-sale couple of years ago. Due to the credit crisis, more and more developers are having problem getting their financing. Another downtown condo development on W. Hastings has just put on hold on but the developer is still trying to find another way to resurrect the project. In my opinion, this is great news to the housing market. There's a forecast of 22% drop on the new development in 2009. Since the demand has dropped into half, less products come onto the market will keep the housing price from dropping further.
Buyers who have bought the pre-sale condo and havethe thought of walking away from the deal, think twice before you do it. Developers have all the right to sue the buyer for "Specific Performance" which means that besides loosing the deposit, you might end up paying for the price difference if developers sold your unit below the price you paid for. I'd urge you to speak to a lawyer before you walk away from the deal.
Buyers beware if you are interested to buy any new development with great incentive such as purchase price including a car or TV or any goodies. Please be adviced that you are supposed to disclose this to your banker when you apply for a mortgage. The reality is the bank will deduct the value of the gift from your mortgage and you might end up have to pay more down payment.
It might sound crazy if I tell you I love this market but I do. I've been waiting for a slow market for a long time. I'm now working with buyer after buyer who wants to buy a home in Vancouver, who have put their plans off due to our high housing price. When all of us go shopping, we naturally want to a good deal. It doesn't matter on what we buy. Well, what more can you ask for when u can get a good deal plus a low mortgage rate for the biggest purchase in your life! Don't you think that's a great deal? Don't let the "Greed" thing get to you AGAIN. We can never get the BEST DEAL. Be happy & content to have a great deal. Forget about anything to do with U.S. They will have more trouble to come before it gets better, give them another year to a year and a half. Our market hasn't been relying on Americans since our dollar value has gone up.
As Dave Watt, President of Real Estate Board of Greater Vancouver said, home sales are not keeping pace with the positive economic conditions in BC due to the loss of consumer confidence in the overall market.
