January sales this year were off by 50% from January of 2008. This was consistent across all markets - residential, condos, and even downtown condos sales. January 2008 was an exceptional year as sales spiked to avoid the introduction of the City Land Transfer Tax and the comparison may be unfair. To get a better measure, 2009 sale numbers matched those from 2001! So what is the problem? Unlike other real estate markets around the world that suffer from serious economic issues, our market suffers from a 'Perception Gap'!
Today's potential buyers think that sellers have to sell at any price and that they can just 'low ball' the offer. And more potential buyers keep waiting for the bottom of the market. The trouble with this approach is that you only know when the bottom of the market occurs after the fact