Midway through 2008, the year in real estate resembles a “buyers market”. A buyers market can be categorized as a real estate market where the inventory of available properties for sale surpasses the needs of the number of available buyers. Signs of a buyers market include an increase in the number of days it takes it takes to sell a property, a decrease in the average home price of real estate, and an increase in the overall inventory of available properties.
Kootenay Real Estate President Andrew Smith says “The real estate market in the Kootenay’s are generally in a “buyers market” state with inventories of active listings on the MLS® increasing 71% over active MLS® listings to the end of June 2007. The market situation that is out of sync with a “buyers market” is the total general average price per unit increase of 16%. Some markets are seeing a decline in average price per unit, but generally, values are holding and statistically are increasing in spite of high inventory levels and a decline in MLS® unit sales.”
MLS® Dollar Volume of all sales processed through the Kootenay Real Estate Board Year to Date to the end of June 2008 are sitting at $439,081,617, a decline of 24% over the same reporting period last year.
Kootenay Real Estate Board President Andrew Smith further says: “REALTORS® in the Kootenay’s expected that the real estate markets would slow in 2008 given the records set in 2007. 2008 is shaping up to be the year the markets take a rest from the unprecedented price gains of the last few years and in general, it’s healthy for markets to pause and cycle. The statistics are showing that even with the declines, values are staying strong. That should give consumers confidence we are not experiencing the same type of a decline as the US real estate market and that the value of their real estate is still strong.”
MLS® Unit Sales in June 2008 declined 37% from amounts reported in June 2007. MLS® Sales year to date to the end of June 2008 show a decline of 34% over MLS® sales to the end of June 2007.
The price of the average residential detached house sold on the Multiple Listing Service® in June 2008 rose by 7% to $334,303 compared to June of 2007. Year to Date comparisons to the end of June 2008 saw values increase to $321,419, an average increase of 15% over the same reporting period last year.
Kootenay Real Estate Board MLS® statistics for 2008 year to date show residential detached housing listings up 21% over the same period in 2007 with MLS® unit sales for detached residential housing showing a decline of 37% over amounts reported last year.
Overall, the number of MLS® listings in 2008 year to date to the end of June increased 27% over the same period in 2007, with overall MLS® unit sales down 34% over the same period in 2007.
When asked to comment on what residents of the Kootenays should expect for their real estate markets in for the remainder of 2008 President Andrew Smith had this to say:
“From an MLS® unit sales perspective we are seeing performance at about 2004 levels. The unexpected factor this year so far are the average price per MLS® unit sale increases. Not all ends of the market are seeing increases, but the common trend is that real estate continues to be an appreciating asset.”
KREB MEDIA RELEASE Nelson. BC July 11, 2008
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