Is the market reality finally settling in?
For months I have been saying that most of the listing right now are overpriced. This has caused the buyers to pull back and make the market appear to be slowing down. Now it seems alot of sellers that were not very serious and/or are getting frustrated with the lack of activity caused by a swamped inventory are withdrawing from the market. This leaves the more serious sellers who are at or adjusting to fair market value. As you can see from today's FVREB hot sheets below there is almost as many price reductions as new listings, and the average price reduction was approx $15,690!
I would expect to see activity pick up in mid to late July once the HST has been implemented for awhile. Most new developments seem to be including the HST in their prices already so there should be NO downward pressure on the market.
FRASER VALLEY REAL ESTATE BOARD
Hot Sheet for June 23, 2010
New Listings: 65
Back On The Market: 5 (colasped sales)
Price Changes: 62 (approx average $15,690)
Listings sold: 35