Tuesday, February 27, 2007

The Housing Market

First off, it is interesting to see how much bloom has come off of the Victoria Real Estate market. I happen to sit on the Property Assessment Review Panel #611 - Greater Victoria residential and there are a lot of people coming forward showing they bought their house for less than the assessment on July 1 2006.

There are clearly houses selling for more than assessment and neighbourhoods that still have rising values, but the overall market is stalling out. There are more sellers than buyers at the moment and the average time a house is on the market has dramatically increased. I would be unsurprised if we saw a 15% to 30% drop in house prices between now and the fall of 2008.

Meanwhile, construction seems to be slowing down. It might be possible to get renos done for less than in the past few years

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