cheaprealty net

There is a lot of activity in the Victoria amd Saanich areas.  You can see a number of new listings and price reductions in this screen shot. 

The rate of price decreases is nothing we have seen in many moons, makes me a very happy "non" owner. Thats also quite the increase in above median listings. I bet the agents are using this time to spook sellers to lower so to increase the sales faster,after all it's about sales,not wether someone like sitting pretty has to choke back an $80,000 loss just to get the sale.

vg,

It occurs to me lower prices might be better for the whole market. I mean, overall, which scenario pays more total dollars to a couple of realtors:

1) Commission on a $500,000 house?

2 Commissions on two $300,000 houses?

Surprisingly, when you look back at VREB stats, there are many years with higher unit sales than recent so-called boom years, times when there was a smaller population and less housing stock. The evidence is here. In particular, look at the single family unit sales from 1989-1992.

I think some realtors should be hoping for the market to go south - as long as they can survive the tough period of adaptation, that is.

Greg,

The "standard" real estate commission around here is 6-7% on the first 100K and 3% on the balance.  So a sale of 500K would be about 18-19K (+GST) of realtor fees.  If the seller lowered the price and sold at 450K the commission would only drop by $1500.  This is great for the listing agent because his half is only $750 less and if this results in a quick sale there is a saving in advertising costs.  Watch for agent pressure on sellers in a couple of months.

 BTW - When the market is hot agents want listings because there is a high probability of a quick sale, minimal advertising and little work beyond a few pictures and preparing the listing sheet.  One agent I spoke to about three years ago said that he was not interested in any more buyer clients but for a listing he would be over in an hour. 

However, now that the listings are piling on agents will think twice about unrealistic sellers.  Who wants to pay MLS fees, advertising and have multiple open houses for an overpriced listing?  The shrinking buyer pool will now get RE agent interest because there is a chance of commission without much financial outlay other than gas for the car.  However, only the best will survive in a buyers market.  The old buy before it's too late, multiple offer game is over and agents will have to work hard for a sale.  I wonder how those guys with heavy overhead (assistants, TV advertising etc.) will do in the future??

I normally wouldn't bother resonding to you, vg (I don't want to get spittle on my frock), but I've been feeling sorry for greg since he doesn't get much attention, despite roger's pleas for people to come here and post approving oohs and aahs to his great wisdom. Anyway, I don't need to sell (unlike most of the bears, I like living here), so I'm not in the least bit worried about the market! And since I don't live in a mouldy basement apartment like you lot, I don't have to worry about whether I'll ever be able to buy. I'm already in, so k**s my *s (edited so the ever-so sensitive greg doesn't have to delete the post).

Greg,

I was reading the London, Ontario blog and they had an interesting discussion on months of inventory (MOI).  Seems that 4-6 months MOI (17-25% sales/active listings ratio) is their definition of a balanced market.  They also had some interesting points about MOI in general.

Why aren't you worried about the market? You know a crash in housing can have many negative effects for us all, even if we are in good financial shape. Guess who they will come after to bail out all the crying whimpering fools who will be upside down. You sitting pretty thats who. And guess who's saving and investments will get inflated away, pensions and benefits clawed back. I'm worried and you should be too. It's not all just about bitter renters in the basement you know. Open your eyes a bit.

"Guess who they will come after to bail out all the crying whimpering fools who will be upside down."

Uh, not me. I thought the point you bears have been making is these people will lose their shirts and it serves them right for not being as smart as the basement-suite-renters. If you think there will be a bail out, you should jump in and buy now!

Don't you guys get it, I'm here to share my knowledge, why keep slapping me away, why? I just want to help.

I know you all live in basement apartments, I've got pictures, stop pretending your plans to buy on a downturn will work. No matter what you say, I promise my plans are smarter. Doh, why can't these ignoramuses listen?

I spread the good word on blogs far and wide and people aren't agreeing with me. The pathetic basement mould swilling paint peeling landlord feeding fools.

There are currently more than 1150 condos listed at prices of more than $300K on mls for Victoria.

329 condos listed for price under $300K.

My search found 326 active listings sub-median (less than $300,000). I guess someone must be updating the MLS stats. I know that there are so many listings being added in Vancouver on a weekly basis, that Paul B has said they have extra staff working until 9 PM on a Friday night.

They're probably adding them right now in Victoria.

OK, here's the breakdown I get. 329 condos under 300. 444 between $300 and $400K. 281 between $400 and $500K. 445 listed at $500K and over. I add that up to a total of 1,499 condos listed in Victoria area. That seems to indicate that almost 80% of listings are priced over median. If someone can show me how the math is wrong I'll be glad to see it, but it sure looks like about 1500 listings to me, not just over 1000 as was indicated above. Now, I am looking over the entire Victoria area. Are we comparing apples and oranges?

Guest at 23:13;

I suspect you are searching type without a preference here and choosing the "condo only" radio button. While that seems logical, other property types are added into the count that way, including townhouses.

My searches are done for apartments only, no other limitations. That probably explains the different numbers.

The best way to test what I am talking about is, search townhouses, while excluding condos; if you do you will only find around 2 properties.

So the search you are doing is lumping townhouses in with the apartments/condos. I am trying to look at them separately, which is why my number is lower. Thanks for the post.

I'm sure condo numbers will get there in the next couple of months.

BTW condos plus townhouses the total from my most recent search was 1419 - and that was a couple days ago. There could have been quite a few listings added since.