Any one that has a television or reads the newspapers knows that the US is in the midst's of a dramatic real estate correction. Major metropolitan regions within the states of Arizona, California, Florida, Nevada & Michigan are among the worst hit with declines of 15% to 30% in the last year. Bucking the trend, the US North West saw modest increases in home prices as did parts of New York and Illinois.
The US mortgage lending system was a mess and fraud was rampant, our lending practices are much more conservative. Job losses continue to climb in the US while Canada's economy is strong and jobs are abundant in most of the country (central Canada being the most notable exception).
British Columbia is blessed with an abundance of resources and our fundamentals are strong but we are not an island onto ourselves. A slowing economy in Ontario and weak real estate markets in the US will have an effect on us, in fact I am already seeing some spillover. Sales have slowed, inventory is up and I believe buyers now have the advantage in negotiations. Looking ahead I don't see the same turmoil that our southern neighbors are experiencing, but supply is likely to outpace demand for some time.
Buyers have reason to be optimistic but sellers need not panic as the lower mainland continues to be among the most sought after regions in the world.
Please remember, if you know anyone that is thinking of buying or selling - call me.