Slow return to seller's market conditions? Depends on low inventory levels/fear of cash becoming the next bubble?

November 5, 2009.

It remains oddly busy, for the time of year!

July and August were very "flat", and tourism involved mainly daytrippers out of Vancouver and the Lower Mainland, according to the Chamber's tourist count.

Although Vancouver reported bidding wars, and diminished inventory, this did not happen in Victoria or on the Gulf Islands or on Vancouver Island or on the Sunshine Coast. This vibrant action was mainly in the lower end residential options, and involved first time buyers, attracted by lower prices and low interest rates, and by investors looking for good rental properties, perhaps seeking "passive income" opportunities.

In a recent newsletter by a well known real estate "guru", in the Lower Mainland, it was noted that 90% of immigration to B.C. goes to Vancouver, with only 4% going to Victoria. Interesting! Surrey and Coquitlam municipalities are looking for expansive options, and are considering allowing developers to create triplexes/fourplexes, where only single family homes were being allowed.

In some recreational/secondary home areas, fractional ownership options are being looked at. It is a way of allowing increased useage, although not increased density (on the Gulf Islands, the Islands Trust prohibits growth).

Creative ways to allow for influx of population. Yes, it's been a downmarket, and for some areas this slowdown actually began in 2006. Yes, it may be slowly crawling out of this. Economic drivers both cause hesitation/fallback, and also propel (fear can be a driver, and in this case, it's the fear that cash may be the next bubble).

Important to be paying attention to "everything" right now, and to be thoughtful, not just reactive, to what we hear.

Also important to practice the attitude of gratitude. We are so lucky that we live in this coastal area, as it is truly beautiful, does offer a sense of the natural world that is missing in so many parts of the globe, and it still offers a "safe haven" lifestyle.

Meantime, in the short term, it's busying up and we need to pay attention to economics, and not to the weather/time of year...it's irrelevant! If sellers were despairing, that time may be over...action is occurring. Inventory remains "thin", and so buyers, (if they haven't acted already), may find that their window of opportunity, on price points, has evaporated.

Stay tuned!