In today's review we focus on the Esquimalt near Victoria and analyze how the current and recent sales prices relate to original list prices for the 3 key property types, single Family homes, Strata Condominiums as well as Town-homes & Duplexes.
In Esquimalt the very limited number of sales are a significant indicator of lack of demand in an area at this time. This does not mean the area is not appealing or desirable, just that buyers are clearly very particular as to where they will or will not buy given the options at their given budget.
With only 57 total reported MLS sales in Esquimalt since June 22, 2010 and hundreds currently for sale, it is typical that the sales to list price ratio spreads will be much more dramatic.
When there are limited number of sales for any specific property type or price range is still interesting, however not reliable to determine trends or market direction.
In Esquimalt the sales to list price ratio's as well as the number of days on the market indicates that except for Medium priced Town-homes and Duplexes the Esquimalt market place is favoring buyers at this time.
When we compare Esquimalt with the entire Core area of Greater Victoria we know that Esquimalt sales are slower (take longer) and are showing an distinct wider spread between asking and sales price. Please compare the Esquimalt Sales to Listing ratio results in this blog with results with those we published recently for the Greater Victoria Area (follow the link)
Hence we would expect prices for Esquimalt Real Estate, for Lower, Mid and High end Condominiums, Town-Homes and Single Family Homes to continue to decline somewhat for the next period of time, until such time buyer confidence returns and we are seeing a return to sales to list price ratio's at or near the 96 to 98 % and sales occurring within 45 to 60 days from listing date.
At the bottom of this blog post is our interpretation of what represents a sellers, balanced or buyers market conditions.
As always we caution you to make any assumptions from general market reviews in relationship to your own property and or properties that you might be considering to purchase in the future. If you have any questions, concerns or observations about this review please do not hesitate to contact us.
Yesterday we published our Greater Victoria Real Estate List to Sale Price Ratio Review, in it we took a birds eye view of the Victoria market place without splitting out any one geographic area. this blog can be viewed here.
Given a reasonable sample of number of properties available, similar property types, price ranges and locations and time frame we offer the following ways to determine strength and or weakness in the market place.
Days on the market means the number of days between the property being listed and the date of a subject free (unconditional) sales contract existing. (it does not reflect the moving date or the date a contract with conditions (subject too's) was entered in to).
We typically consider Sales to List price ratios of 98% or higher of the listing price as a good indicator of a healthy to strong sellers market. particularly when combined with less than a 45 days on the market average.
Sales to List price ratios between 96 to 98% off the listing price and selling within the 1st 45 days on the market we consider as a balanced market.
Sales to List Price ratios lower than 96% of the listing price and selling in more than 45 days are a good indication of a buyers market.
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Esquimalt Real Estate List to Sale Price Ratio Review