Vancouver real estate now a buyers' market

Residential property sales in Metro Vancouver dropped 55 per cent while prices fell 3.9 per cent in October compared to the same period last year, according to new figures released Monday.

Buyers seem to be uncertain about the economic future, prompting a steep decline in home sales, the Real Estate Board of Great Vancouver said.

"The confidence issue, in our opinion, is a factor that has never been in the mix before, which is this global credit crisis," board president Dave Watt said.

Local real estate agents said more people are selling than buying, creating a buyers' market with lowered prices.

Holly Wood, a Vancouver realtor, said Monday that buyers can "go in low" after choosing the properties they like best among similarly priced units.

"The worst thing they [sellers] can do is counter back, but, who knows, in this market, they may take it," she said.

The drop in home sales also means fewer people are listing their homes for sale, a University of British Columbia real estate expert said.

"People are responding. They're saying, 'You know what, this isn't a good time to sell, or if I sell, I don't know if I'll be able to buy another unit.' So there's that reaction, which is part of how a market adjusts," said Tsur Somerville, an associate professor at the faculty of commerce and business administration.

Somerville said Metro Vancouver's real estate market is still "very much in this steep decline."

"When is this real estate market or the housing market going to stabilize and sort of stop declining? That's going to have to wait until economic conditions improve," he said.