Comox Valley Real Estate Market Update - Buyer's or Seller's Market? Read on to find out!

Posted: Nov 08, 2011

The long and skinny of it: tight market.

Our team are some of the busiest in the office, but we're not that busy. The market has slowed in the last month. There have been quite a few new listings come on the market in October and fewer sales. The highest list to sell ratio (60%) are for residential sales under $300,000 - not many of those around. It drops off thereafter: $300-$500K: 51.5%; over $500k 31% and lower as you go up in price.

There is some variance for type of product (condos: 25% selling - 2 year supply of inventory!) and area (Crown Isle: 25% selling - 2.5 year supply of inventory!) Most active area: East Courtenay but only 42% list to sell due to high inventory there; Comox 59% (the highest). Patio homes and $300-$400K single family in Comox are highest in demand.
Lot sales slow, waterfront sales stagnant, acreage and rural... hurry up and wait.

Does the election influence? Mildly. People like to know the result even though no matter what the result is things resume as normal afterward.
 

One piece of potentially good news for sellers in Comox is that there are no more big multiple lot developments right now, which could (of course depending on new inventory in the spring) move that sector of the market into a seller's market (no new construction!) A 10% reduction of inventory or increase in sales will do it for that area. That is the only area in town that may have the possibility of stable or even slight increase in values in the spring. Not Comox Peninsula or the rural Comox, but within the Town limits.

High end everywhere is taking a hit. The longer these sellers wait, the less they'll get (unless they want to wait 3-5years, then maybe. Maybe.)

This is not a market to hesitate. We've asked some of our sellers for price reductions and they're not ready. They make the choice. We understand that everyone wants to get as much as possible (we hear that a lot!) but at the same time sellers need to understand that when they are finally ready to make that change, the  last recommended price might be too high again already. I have a couple listings I can think of off the top of my head that have said no to a price change and now even the price I'd recommended a month or two ago is too high (based on new inventory on the market and/or properties that did sell but sold much less than expected.) I want to note here that when we give pricing, we generally tell our sellers here's the price range you should be in. It's a sliding scale (by price) of 'expect a sale' to 'test the market'. It's frustrating to see our clients losing money because of hesitation, but we also understand that they have to be comfortable with the decisions they make. It's even more frustrating to run the course of the listing only to see it expire and shortly after listed with another agent at the price we recommended. (Okay, pet peeve rant about the business, but really?)

When Melissa and Richard and I discuss our listings and I say, "Remind me, why are they wanting to sell?" this is a reminder that if that seller is buying again, it's apples to apples, they win on their next purchase. If they just want out, maybe they don't get to make up the $, but that seller has a reason for wanting to sell (maybe they have a better investment they want to put the equity into; maybe they're tired of tenants; maybe they want to pay off debt or simplify life). Whatever the reason, it's our job to help them understand and accept that need, debt or even greed doesn't create value. The market determines value. Other listings a buyer will consider; sales that show what buyers are willing to pay - we don't make this stuff up! We just give information so our clients can make informed decisions.

Last thing (I promise); some buyers have the luxury of considering other areas, such as retirees. Look at the average home price in Campbell River: $291,000. That's $60,000 less than the Comox Valley. The Comox Valley real estate market is affected by more than our boundaries including economies in other areas. Too much info to go into here, but please trust that we know our jobs and know what's going on elsewhere that affect real estate property values here in the Comox Valley.
 

I've run off long enough here, thanks for your attention, please let us know if you would like to discuss the value of your Comox Valley real estate or property - in person, by phone, text, email, twitter, linkedin, skype, you get the picture - we're here for you! (Um, especially if you have a house to sell in Comox between $300-$400K! Wink wink nudge nudge.)

Anna Jorgensen, REALTOR®, Royal LePage in the Comox Valley