Tuesday, October 07, 2008

VANCOUVER ISLAND HOUSE PRICES DROPPING


NANAIMO MEDIAN HOUSE PRICE
DROPS BY $3,000

According to the Vancouver Island Real Estate Board house prices are dropping all over Vancouver Island compared with last year. However, even though Nanaimo house prices are off by $3,000 compared with Sept. of 2007 they are still 8% over 2006 prices.

The Cowichan Valley saw house prices drop off by $35,000 during the same period. The falling prices have meant Cowichan Valley and Port Alberni prices are off by 9% compared with Sept. of last year.


A director from the Vancouver Island Real Estate Board is quoted in the local press as saying it is turning into a buyers market and sellers need to lower their expectations. He also is quoted as saying that over the past few years prices got stupid and even a drop of 10% is not a hardship for most homeowners.
However, anyone who bought last year in some markets could see their homes worth as much as 9% less than last year.

Editor's Comment:
House prices over the past number of years have been artificially inflated driven in part by easy to get mortgage money. Remember those no money down mortgages? Easy money with low, low rates brings more people into the market, which of course drives up the prices. The difficulty comes of course when house prices drop and interest rates go up and people start walking away from their homes. The housing meltdown in the US is a prime example of what happens when markets are 'tinkered' with too much and greed and fear become the ruling force. The average house price in Las Vegas has declined by 30% and in Miami by 28%, just the put things in perspective.

For current Nanaimo House Prices use this Nanaimo Info LINK.

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