Less Listings Coming Onto The Market, Supply And Demand.

I have noticed over the past month that within our Brokerage (Royal LePage Coast Capital Realty) we have seen a dramatic decline in the number of new listings coming onto the market. To me this is a seasonal trend that is quite predictable here in Victoria BC. I am expecting the market to chug along at a predictably slow rate as it usually does at this time of year. We are seeing a lower than usual number of sales happening these days, so I have been asking the public what they think the reason is. The other day at an Open House a lady told me and Peter that she had already bought and so did everyone she knew that was going to buy. This was a good point! There are a finite number of buyers out there, and it is very possible that we have more homes for sale than there are buyers to buy them. We all know that our prices downtown are high and that if they were to lower we may attract more buyers to the downtown area. The thing is, the prices of non-luxury downtown real estate have not dropped below the prices seen earlier in this year (February), but the number of sales in the downtown area have been steady. Demand is a powerful market force and it is keeping prices quite stable for homeowners selling their downtown real estate. I work primarily with downtown real estate but this does not make me un-aware of the different things are happening outside of the core areas of our Capital Region.

Aaron.

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