LANGLEY (NEWS 1130) – A local realtor is sounding the alarm about the condo market in the Fraser Valley, pointing to an abundance of inventory, but falling sales numbers.
Steve Saretsky says, according to numbers from the Greater Vancouver Real Estate Board, inventory went up 150 per cent year over year in October, while prices fell 50 per cent in that same time.
“Over the last two years, we’ve been used to rising sales and falling inventory. Well now it’s the complete opposite.”
He concedes last year was a record high for sales in the Fraser Valley, so a slight drop was expected.
“But obviously, a 50 per cent drop is significant, and when you have a 50 per cent drop, and a 150-per cent jump in inventory, that’s a trend that is really going the other way,” says Saretsky. “And it’s going the other way pretty quickly.”
He says there may be some panic or desperation settling in around the market, pointing to a Langley condo development that’s offering to cover the first year of mortgage payments for the first few buyers. It’s something he says he hasn’t seen before.
“I think that’s generally a sign that the developments are slowing down, and they’re struggling with some of their sales and trying to boost those numbers and get off to a hot start. Generally, it’s a sign of a correcting market.”
Saretsky says the trend isn’t just specific to the Fraser Valley, but is being seen around the region, including Vancouver, although to a lesser extent.
So, will that mean lower prices? He says we’re already seeing prices start to edge down, and that should continue.
He adds the trend isn’t just specific to the Fraser Valley, but is being seen around the region, including in Vancouver, although to a lesser extent.