In the residential real estate sense, when the word “sectors” is used, it is important to clarify whether the sector is geographic, type of home or price range.
As diverse examples I would cite – Vancouver West Side detached homes $5mm or more (45 sales April 2016 vs 4 Oct 2016 ) – Sunshine Coast townhome sales up 50% this Oct vs Oct 2015 – Whistler/Pemberton apartment sales this Oct (50 vs 29 Oct 2015). Yes these are somewhat unrelated but the stats serve to illustrate the range of activity depending upon the ‘sector’ we focus on. Always ascertain the sector in which the “market” claim is being made.
What has yet to be proven is whether or not there has been a reduction in prices ( i.e. an improvement in affordability). What we are seeing is certainly an overall reduction in the number of residential units changing hands. We are fully aware of the lessening of desire on the part of what we used to call the “buying public” to actually purchase a home (i.e. Demand). Those who have to sell will, in all likelihood, be forced to seriously entertain offers at a level below their present asking price. The majority of those who do not have to sell, appear to be removing their homes from the market.
Based on the approximately quarter century I have been involved in residential real estate sales my prediction is that we shall see a continuation of the lower sales levels for sometime into the coming year. Even without the benefit of a crystal ball or the hindsight of actually seeing data for the first few quarters of 2017 I do however feel that the sales numbers of the second half will outstrip those of the first.
The outcome of the upcoming (mid year) Provincial election will of course have a bearing on the speed or sluggishness of the return to a more buoyant market.