27
May
2009
Anecdotal evidence
Normally, I don’t give much credence to anecdotes — sample sizes are too small to be meaningful — but I found this comment by DavidWDesjardins, posted on this CBC news story, extremely interesting:
As a developer of software for realtors, I have a keen insight into the real market. First and foremost the real estate board only comments on the sale of properties, avoiding any numbers regarding presales and assignments.
Assignment resales accounted for nearly 50% of realtors revenue who operated in the downtown core. After the crash, reslaes went into the toilet. These number are never reflected in the boards numbers, The real damage and fallout from this won’t be seen for months to come.
MAC Bulk has made some headway, but the numbers of units moved is a fraction of what they were a year ago.
With our software we also track price reductions. Homes in the 500K range have dropped an average of 14%. Homes in excess of 1.5 million have seen price drops of as much as 30% to get a sale. And don’t get me started on the ultra expensive market. Complete stagnation.
