Red hot real estate market cooling

Slowing sales and rising inventory in Greater Victoria last month suggest the once red-hot real-estate market is cooling.

At this time last year, the market was tilted more in favour of home sellers, the B.C. Real Estate Association's chief economist, Cameron Muir, said yesterday.

"Now, home sellers have to be much more cognizant of the competition between them and their neighbours that are selling," Muir said. "Things like how the home shows, curb appeal and a much sharper pencil in pricing is much more important today than it was a year ago for home sellers."

When it comes to homes that are sitting unsold, Muir said, "A lot of that has to do with homes that were priced according to previous accelerating market conditions, which will tend not to be the best strategy given today's market realities."

It's expected that prices based on the previous market conditions will be repriced or taken off the market as months pass, he said. That will tighten inventory.

Greater Victoria's sales-to-inventory ratio puts the region on the cusp between a balanced seller and a buyer's market, Muir said, adding that Greater Victoria "is doing much better than many other areas in the province."

The number of properties for sale locally rose to 4,557 in July through the Multiple Listing Service. That's the highest level since 1998, said Tony Joe, Victoria Real Estate Board president. In May 1998, inventory stood at 4,567 properties.

Buyers are getting more choice now that inventory is up by 34 per cent compared to July last year.

Last month a total of 616 properties sold in the region, down from 723 in June. In July, 2007, a hotter market delivered 922 sales.

Greater Victoria's average price for a single-family house last month was $578,177. Saanich led municipalities with 107 sales, followed by Victoria with 43 and Langford at 38.

The average price for a condominium was $302,536, down from $319,943 in June.

(Source: Victoria Times Colonist/Vancouver Province)