From the mire of depressing headlines, I wanted to offer some good news in this time of economic contraction and unrelentingly dismal headlines. Prices in the downtown Vancouver condo market have been affected as they have everywhere. The reality of the current condo market is that values are off somewhere in the 20% range and many pundits predict further price erosion in 2009 and 2010. Vancouver's market is is considered to have overshot its "equilibrium" (cost of housing vs family income) more than many other Canadian markets. Translation? Vancouver prices will likely deteriorate further than some of Canada's other major real estate markets.
For those of you hoping to cash in on the "Olympic effect", I urge you not to make important economic decisions based solely on a 17 day sporting event that will almost certainly prove to be meaningless in macro economic terms. Meaningless, that is, unless you consider the staggering debt currently accruing to the city, hundreds of unsold Olympic Village condos along with hundreds more that will be converted from athletes housing to market units and liquidated at some point before or after the games, and a mass exedous of labour from the province as infrastructure projects reach completion (read, rental market collapse). I predict that an audible flushing will eminate from the downtown Vancouver condo market as investors who bought condos in order to cash in on the games, exit the market en masse. If only I had a penny for every time I've heard about the fortunes the Olympics are so sure to bring all those one bedroom downtown condo owners. I hate to be pessimistic but it's only going to get worse.
Despair not, there is a silver (Sterling) lining
Don't dispair, there is some good news. While I'm sure that the recent crash of the Pound Sterling is bad news in many cases, in terms of selling your Canadian real estate, it's great news. Since October, the Sterling has lost approx 35% against the Canadian dollar. That' translates into a 35% increase in your proceeds, enough to offset recent declines in pricing. If you decide to capitalize on this currency exchange opportunity, you are well advised to do so quickly. It's paramount that you are "realistic" in your expectations and pricing. Local developers are now conducting "mass liquidations" of recently completed product. This is sure to have a negative impact on overall market pricing. Paired with the volitility of exchange rates, I strongly encourage those of you who are considering selling, to do so aggressively and quickly. This is your opportunity to stop the bleeding.
To that end, I am hear to help so take the time to contact me so we can discuss your property and it's current value in this new, more challenging market. I'll help you develop a winning strategy to cash out of Vancouver's condo market with as much left in your pocket as possible so you can move your capital to new, more productive opportunities.
Shaun is Coal Harbour's #1 Top Producing Realtor
Based on 2008 REBGV MLS listings and sales in Coal Harbour.
What should you do if you are thinking of buying or selling?
If you are considering selling your condo, call Shaun. If you are thinking of buying real estate, call Mike Cook. Everybody has a unique and different situation and our primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision. Now is the time for honest, straight talk, and that's what we promise to deliver.
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