Fuel and Food Prices Impacting Real Estate.
As gasoline prices continues to rise, driving up the costs of food and other staple products discretionary buying will slow, and we are starting to see it. Car sales are falling and now it looks like secondary/vacation homes are starting to take a hit. In Victoria BC we are seeing a definite slow down in the market, but feel with such a strong economy and a very desirable place to live the slow down will be limited. Please read the article below from Cam Muir the BC Real Estate Association chief economist.
British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 27 per cent to $3.85 billion in May, compared to May 2007. Residential unit sales fell 31 per cent to 8,101 units during the same period. The average MLS® residential price in the province reached $475,656, up 6 per cent from May 2007.
“Rising fuel and food prices are impacting the housing market, as many potential homebuyers take a wait and see approach out of concern for their household budgets,” said Cameron Muir, BCREA Chief Economist.
While BC has one of the best performing economies in the country, slower economic growth and a spate of bad news stemming from the US housing recession is also eroding consumer confidence, causing some consumers to delay major purchases.
“Despite strong demographic fundamentals, amenity markets in the province are bearing the brunt of reduced demand as second home purchases by recreation and investor buyers are more easily delayed,” added Muir. “However, higher inventory levels may soon edge lower as homes priced in relation to the accelerating conditions of the past are either pulled off the market or re-priced and sold according to today’s market realities.” For the remainder of the article please log onto http://www.bcrea.bc.ca/news_room/2008-05.pdf
Please contact us if you would like more information on the market here in Victoria BC and visit our website and log onto Victoria Market update to stay informed on current trends.
Cheers
Bill
Bill Ethier B.Sc - REALTOR®
Properties in Victoria Professionals- Royal LePage Coast Capital Realty
Bill has been a REALTOR® in Victoria since 2006. Originally from the Vancouver area, Bill moved to Victoria to attend the University of Victoria where he received his Bachelor of Science. Not only does Bill have a wealth of real estate knowledge he is also an active member of the community. He is a member of Triple Shot Cycling Club, Island Road Racers and is the Race Director for the Sooke River 10K.
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