Jeff Nagel, Surrey Leader, August 7, 2008

Today's real estate frenzy consists of property owners hustling to sell and get their money out of a declining market.

Industry experts say buyers are now in command and motivated sellers are having to cut their prices – and in some cases offer extra incentives – to sell.

The market downturn, coupled with the subprime mortgage meltdown in the U.S. and recession worries in eastern Canada, are scaring some owners, said Landcor Data Corp. president Rudy Nielsen.

"There's people that are panicking and some developers are panicking," he said.

Buyers should treat it as a good opportunity and owners who don't need to sell shouldn't worry, he said.

"It's only a temporary thing," he said.

Nielsen predicts the Lower Mainland real estate market will fall "a bit further" before leveling off sometime next year.

"Then we start climbing sometime next fall," he said.

This region will remain a highly attractive place to live, Nielsen said, and its physical constraints – bounded by ocean, mountains and the U.S. border – tend to support land prices.

New stats released Tuesday show a record 12,300 homes are now for sale in the Fraser Valley region – a 56 per cent jump from a year ago, when sellers could afford to be much pickier.

Sales, meanwhile, are down 35 per cent.

In most of Metro Vancouver north of the Fraser, sales are down 44 per cent and listings are up 24 per cent.

Selling prices have also fallen in the past two months.

The benchmark price of single detached houses in the Greater Vancouver real estate region (north of the Fraser) fell 2.3 per cent since May to $753,165 in July.

That's down from the peak in early 2008 but still 5.4 per cent higher than one year ago.

Greater Vancouver townhouses and duplexes are meanwhile down one per cent from May, while condos are down two per cent.

In the Fraser Valley region, which includes the South of Fraser area except South Delta, average selling prices for single detached houses fell 5.6 per cent from June to July. The current average price of $530,000 is still up two per cent from one year ago.

Townhouses in the Fraser Valley are down 3.9 per cent month-over-month and up 0.2 per cent from one year ago.

Apartments are down 1.1 per cent to $234,600 – still 6.5 per cent from July of 2007.

The one-month price drop for single detached houses was steepest in Surrey and Port Moody – both down six per cent from June. The west side of Vancouver was off 5.5 per cent and Burnaby prices fell 5.2 per cent.

West Vancouver apartments were also down seven per cent.

Nielsen advises buyers to simply hold out for a good price and not be tempted by other bonuses.

"Let them keep their furniture, the trip to Hawaii and all that fun stuff," he said. "Just negotiate your price."

In the past couple of years homes were often snapped up fast, sometimes with sellers weighing multiple offers over asking price. Now the average length of time to sell a single family home in the Fraser Valley is 50 days.

Price cuts are now being seen more often.

"It's a situation of supply and demand," said Fraser Valley Real Estate Board president Kelvin Neufeld.

"Buyers are now in the drivers seat," he said. "We're starting to see that reflected in home prices."

July 2008, one year % change

Abbotsford
detached house – $464,900 (+ 9.4 %)
townhouse – $273,600 (- 2.4 %)
apartment – $200,800 (+ 10.3 %)

Burnaby
detached house – $716,800 (+ 2 %)
townhouse – $460,700 (+ 5.6 %)
apartment – $342,300 (+ 5.4 %)

Coquitlam
detached house – $693,100 (+ 9.3 %)
townhouse – $422,000 (+ 4 %)
apartment – $289,700 (+ 3.3 %)

Delta - South
detached house – $639,700 (+ 4.5 %)
townhouse – $470,900 (+ 18.4 %)
apartment – $360,700 (+ 12.2 %)

Langley
detached house – $525,900 (+ 1.6 %)
townhouse – $323,100 (+ 2.3 %)
apartment – $229,300 (+ 3.4 %)

Maple Ridge
detached house – $463,700 (+ 2.7 %)
townhouse – $321,700 (+ 4.9 %)
apartment – $260,400 (+ 3.7 %)

Pitt Meadows
detached house – $510,000 (+ 5.5 %)
townhouse – $321,700 (+ 4.9 %)
apartment – $260,400 (+ 3.7 %)

Mission
detached house – $395,700 (+ 2.2 %)
townhouse – $335,200 (+ 16.3 %)
apartment – $210,000 (- 9.7 %)

New Westminster
detached house – $574,800 (+ 6.9 %)
apartment – $298,400 (+ 5.6 %)

North Vancouver
detached house – $884,000 (+ 4.3 %)
townhouse – $597,000 (+ 5.0 %)
apartment – $389,100 (+ 3.4 %)

Port Coquitlam
detached house – $552,700 (+ 4.4 %)
townhouse – $395,700 (+ 4.6 %)
apartment – $254,700 (+ 5.6 %)

Port Moody
detached house – $766,100 (+ 16.8 %)
townhouse – $393,500 (+ 1.4 %)
apartment – $301,500 (+ 0.4 %)

Richmond
detached house – $770,000 (+ 8.0 %)
townhouse – $467,700 (+ 7.4 %)
apartment – $318,500 (+ 7.8 %)

Surrey
detached house – $520,200 (+ 1.6 %)
townhouse – $323,100 (+ 2.9 %)
apartment – $217,700 (+ 7.8 %)

Vancouver - East
detached house – $674,700 (+ 4.2 %)
townhouse – $506,100 (+ 4.3 %)
apartment – $326,300 (+ 7.2 %)

Vancouver - West
detached house – $1,390,600 (+ 5.7 %)
attached – $732,000 (+ 5.7 %)
apartment – $482,000 (+ 3.5 %)

West Vancouver
detached house – $1,409,500 (+ 3.2 %)
apartment – $661,600 (+ 1.0 %)

White Rock
detached house – $825,300 (+ 2.8 %)
townhouse – $452,500 (+ 0.5 %)
apartment – $329,800 (+ 2.6 %)