Tepid sales numbers spur call to cash out of housing market

The last person you might expect to be talking up a real estate crash is your realtor.

But that’s exactly what Keith Roy of MacDonald Realty is doing. Mr. Roy is not only telling people it’s time to cash out of Vancouver housing, he‘s doing it. He sold his townhouse four weeks ago.

This week, as Vancouver posted another set of dismal results for sales, the realtor blogged about why he made the decision to exit the housing market.

“The first thing they teach you at real estate school is it’s always a good time to buy, it’s always a good time to sell,” says Mr. Roy, who must have skipped that lesson because he thinks it’s time to get out of the market. “I pride myself on giving advice and this is one of the more bold moves I have made in my career.”

On his blog, keithroy.com, he lashed out at the real estate community for the way it has portrayed the current state of the market.

“Far too often the real estate industry, of which I am obviously a part, makes excuses for slow sales periods, declining prices and difficult negotiations,” he said. “These excuses are self serving.”

On Wednesday the Real Estate Board of Greater Vancouver released June figures showing sales down 27.6% from a year earlier and down 17.2% from just May. The benchmark price index was up 1.7% from a year ago but the city has seen prices drop in the shorter term and economists expect more declines to come.

Toronto joined in with its own negative results yesterday as sales in the city declined 13% from a year ago while the entire GTA was off 5.4%. Like Vancouver, Toronto prices are still holding firm — actually still rising at a reasonable clip — but the many like Mr. Roy wonder whether it’s time get out at the top.

“I looked at the inventory numbers coming out. May was the highest inventory in the last 10 years,” said Mr. Roy, who has flexibility to move because he has no children and is not married.

It’s his second home after first buying a condominium. He doesn’t know what’s next but he’s prepared to rent if he has to. “I’m going to wait it out until the fall and see what’s out there,” says Mr. Roy.