Had a conversation with one of my buyers regarding the latest talk about the condo market going down the drain. I asked him what he meant and he said that the prices are going down and the everyone is going to loose money. Are we looking at US type of market crash? My friend thinks so. Just to get some facts myself, I did a little research and found that Lower Mainland growth rate is at around 1.5% and 2.5% per year. Over 60% of these newcomers are immigrants, and the rest are moving from other parts of the country. Where will they live? With out traffic being what it is, slow as molasses, and no place to go North or South, we are pointing to te sky. Condos and more condos. Townhouses and multi family projects of all kinds. As long as we can keep the employment rates up, and mortgage rates down, I can't sethis market going into a tank. We noticed that the market for single family homes is slowing down , mostly due to the increasese in inventory and better selection for the buyers. Multiple offers, so common few weeks ago have slowed down to a trickle. Buyer's are out there and pre-approved, and properly priced inventory gets attention.

Condos are selling and projects that are being built around good transportation routes, SkyTrain, West Coast Express and dependable bus lines will do well. We are starting to useour transportation systems more and more. Hey, if nothing else the price of gas will drive us to the SkyTrain or a bus. Condos are selling because the first time buyers can not afford to step up to single family home prices. Got to start somewhere.

So, to get an idea what is going on with cndos, I took a look at market absorption for condos in various areas of Lower Mainland.

  If over 5 months on the market means taht the market is turning into a buyers market, than the above graph doesn't yet, show any such big moves. To keep things in perspective, the Burnaby East and West Vancouver market with 117 and 145 listings respectively don't represent major market moves. The only other area that appears to be stalling is Coquitlam. There should be some good choices and buys in the area.

In the next couople of weeks we will have a look at the pricing. Is more condo inventory having a major impact on the selling prices? Stay tuned. Meanwhile, my friend is sitting back and waiting for the market to collapse. I don't think so.