I'm gonna go out on a limb this week. I'm calling Victoria's average SFH sale price in September ($584193) as the peak average price for Victoria for the next couple years. With winter coming, what's going on in the U.S. and Alberta, and rising mortgage rates, I think we've hit the top. April 2008 will be the first time since March 2007 that Victoria has a year over year decrease in average SFH price. Average monthly prices for the summer of 2008 will be lower than the summer of 2007.
Of course, I am 100% amateur, and have nothing riding on this prediction (aside from house prices moving further from my affordability level if I'm wrong). Put only as much stock into this as you want.
As I write, I have friends bidding on a house in Victoria. As strongly as I feel, I try not to influence their decision. If I am wrong, and they hold back because of me, thus falling further behind the rising prices, I'm partially responsible. I don't want to be. Everyone needs to be responsible for their own decisions. If you are comfortable with the numbers, go ahead and seal the deal. I think that good things will come to those who wait.
Update: My friends bidding on the house did not get it. Reason being - after offers were supposed to be in, the selling realtor continued to show the house, and tell new interested parties what the current high offer was. It's pretty easy to place the highest offer when you know what second place will be. The ethics of some in the realtor profession continue to disappoint me.
