Year to year I can safely predict price reductions between 15% and 20% in various markets in the Lower Mainland. Notice, I said year to year.
With all the talk of discounting, clearances, bulk sales, foreclosures etc, by the local developers and their marketing people, many of the buyers are confused and expect further price reductions.
Don't feel sorry for the developers. They are not loosing money. They are just trying to get you to the table so they can get rid of their inventory. Most of the projects clearing inventory have been planned and build over the past couple of years. The developers paid for the land when the prices were much lower and the market was down.
Depending on the location and time of purchase, , the land was at somewhere between $50 and $90 p.s.f..
The worst of scenarios, would be for the developer of the Olympic Village to have to sell their condos under duress. They paid a premium for the land, around $260 ps.f. and with the labour costs being at the highest due to the number of construction projects on the go, their selling prices reflect the real costs.
As you can see from the following charts, todays pricing is comparable to the prices of Jan 2007. As the market heated up the prices climbed and everyone including the developers and the re-sellers took advantage and raised prices.
Now we are close to where we should be and where the normal market will settle, more or less.
In the next few months we will be comparing prices from the highs of the market, between May and September, depending which segment of the market you are comparing to current pricing. Reductions will be obvious.
Burnaby Detached.
Burnaby Attached
Vancouver Detached
Vancouver Attached
here you have it. If you are waiting for more discounts and prices going down, you may not see it. Neither the low low mortgage rates of today.
So if you are thinking of buyind and want to find that perfect home at a great price, become a VIP buyer and save money and time.
If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-506-8481 or email me at jeff@jeffreystark.net
