He/she would probably be happy to answer the question and so would your gardener and your neighbor and your boss and your lawyer and your banker……..and they’d all have a different answer! The only response has to be “Depends how you look at it”.  There’s no absolute reality here. The market in Victoria in January, 2012 is definitely a reflection of life itself, i.e. serious challenges for many and enticing opportunities for others.  Those with real estate challenges are sellers under pressure to sell due to job transfers, illness, financial difficulties or even fear itself. Those with opportunities are the astute and savvy buyers.

Although the average decline in prices over the last year might hover around 5%, depending on location and property type, some disadvantaged or frightened or impatient sellers are offering properties up to 15% or more off their value a few months ago. Even if there continues to be a softening of the market this more than compensates a buyer for any future decline.

Visionary buyers with the ability to discover these properties are regarding them as very attractive indeed.  They’re becoming bored with the often unsubstantiated “doom and gloom” perpetuated by the media. Note a recent article stating townhouses have declined by $100,000 when in fact the true number is approximately $5000 since 2010.  Someone read the wrong line on a spreadsheet!

Those who can obtain cash or mortgages at unprecedented low rates are taking action now before there’s a general recognition of this twist in the market.  After all, success is often achieved by “DOING WHAT EVERYBODY ELSE ISN’T”!

Victoria continues to have an oversupply of properties available, but many are not realistically priced for what they offer.  However, some well-maintained, well-located and sharply-priced (REALLY sharply-priced) homes and condos in the lower and mid-price ranges can now be found.  Therefore, first-time and younger buyers have opportunities that haven’t existed since probably 2008.

The upper price ranges have undergone much diminished activity so that buyers in this bracket are also at a distinct advantage. However, it can be difficult to obtain a generously-sized, upscale and well-managed condominium in many of the popular areas. It is not unusual to have multiple offers on these but only when they come to market  with a “better than realistic” price.

The global economy certainly has an effect on real estate perceptions but the Victoria economy is so fortunate in many respects. Not only are we the best place to live in Canada (no bias here!) but our resources have many facets…….tourism, government, military, small business and a rapidly burgeoning high-tech industry. Property sales should remain fairly stable, despite fear and indecision in some quarters. Naturally the market has declined from the unsustainable prices of the last decade.  However, the gains for sellers over that period are still substantial (and usually tax free!), yet the bargains for buyers are often more favourable than they’re expecting.  It only remains to overcome the confusion and lack of confidence that underlies so many aspects of life today.

Lois D.