Whispers from the Edge of the Rainforest: First time buyers: "Save your money and wait"

Monday, October 4, 2010

First time buyers: "Save your money and wait" - Victoria area Mortgage Broker

As we reported earlier this month, Victoria real estate mid month sales were dramatically down and on track to be off 75% from this time last year.

Sales did pick up in the second half of the month, but as the final numbers are tallied,Victoria has hit a 20 year low with sales down 50% from last year.

That total, by the way, is the lowest in 20 years. Note that they only started keeping such records in 1990, so Victoria recorded it's lowest number of sales EVER last month.

As we enter the October/November period, historically the slowest time of the year, their is fear in the air... and it is palpable.

Check out this news story by CHEK-TV in Victoria (youtube video above).

From the intro: "Realtors say if you are selling your home you need to consider dropping your asking price or be prepared to wait a long time."

Even better is an excerpt where viewers are told that Frank Simon, a Langford mortgage specialist, is telling people that there is no demand for housing left and is openly predicting a price crash.

Simon is telling first time buyers to save their money and wait. To home owners, Simon is blunt saying "your home price is going down."

CHEK-TV attempted to contact Simon for a interview to expand on his comments, but he was muzzled by his employer, Dominion Lending.

Gee... I wonder why?

Meanwhile the first forecasts for Real Estate in Vancouver next year are coming out and there are calls for at least a 5-10% decline in values.