What would it take for you to buy a condo in the current real-estate market in BC?
Price corrections are happening in specific locations and among specific property types as the market adjusts to one in which homeowners are the dominant buyers and investor buyers exit the scene, according to Jennifer Podmore-Russell, managing partner of the development research firm MPC Intelligence.
The industry jargon for a major change in the market is a “price correction”, which if applied to a product at WalMart would mean that it was incorrectly priced to start with, but somehow that is overlooked in this whole discussion applied to real estate.
Providing incentives to potential buyers is a common tactic in the uber-competitve car market where free gas or cash-back offers are regularly seen. The Real Estate market hasn’t seen this type of deals for a few years, where buyers are lured with mortage assistance (for the new-home buyer), or furniture allowances (for the luxury-home buyer). Although the salespeople are stating that there is no real adjustment in prices likely, the very fact that they are offering over $10,000 in incentives should lead the wary customer to believe that the property is priced at least that amount too high to start with!
I haven’t seen these tactics rolled out across the province to the smaller centers like those in the Kootenays, but I guess it is inevitable that they will come soon enough. Housing prices are high, construction prices are high, either the prices drop to reflect reality, or the market will slow down.
Hang on, it already has, what do you make of that?