Real Estate sales in Vancouver and Victoria are down. 10-15% from last year depending on the type of house/condo.
This is, I suspect, very much the top of the ski hill. But the price decreases are not going to come for a while.
There is a natural tendency for people who own real estate to believe that their house/condo/block/neighbourhood/suburb/city is different and that they are entitled to a price which does not reflect the market.
And, of course, real estate agents who want the listing tend to value on the sunny side of optimistic. Why not? A real estate agent with a listing – no matter how incorrectly priced – has 90 days to sell the house and make a commission. In a falling market starting high and dropping the price and then presenting offers even lower than the asking does not hurt the agent. 1.5% on 900k is not substantially different than the same commission on 1.1 million.
What is forming now is a good deal of buyer resistance and caution in the light of the changes to the mortgage rules and the dawning suspicion that $550k for a 600 square foot concrete box may not be a world beating investment.