Dear Client
Another year is upon us. We hope that you are well and that 2009 is a good year for you. As it turned out, 2008 was a very memorable year. The real estate market (as you know) has shifted. After the middle of September buying activity was reduced dramatically. Prices are down around 15%, some would say 20%. A lack of consumer confidence and expectations of further price adjustments seem to be to blame. In fact it seems that the “recession” that we find ourselves in may be partly due to fears and expectations of further bad news than the actual bad news itself.
Here’s a snapshot of home sales for the past few months compared to the same period in 2007. The following table shows all home sales (detached, townhome and apartment) in Maple Ridge and the Tri City area for 2008 and 2007.
Tri City Units Sold
2008 2007 % ChangeDecember 83 183 – 55%
November 126 356 - 65%
Oct ober 171 406 - 58%
Maple Ridge Units sold
2008 2007% ChangeDecember 32 142 -77%
November 62 173 -64%
October 67 183 -63%
As you can see, sales are down significantly. Is this all bad though? We say no. Basically we’ve rolled back the price clock to early 2006. Were prices “too low” in early 2006? No, it’s all a matter of perspective. For the “move up” buyer, this price adjustment is excellent news because the gap between the existing home and the new more expensive home is smaller. Again, we wish you all the best in 2009. Don’t hesitate to call if you have any questions about the market.
Yours truly,
