Thursday, June 05, 2008
Real Estate Price Changes in the Greater Vancouver Area
Well the model predicted a slowing of the 6 month price change but much steeper decline that was witnessed. Partially, this is due to a real pick up in sales during the latter part of the month of May relieving some of the inventory pressure and causing the month to be a little more on the moderate side.
Sales will likely need to fall further and inventory continue to climb for us to see meaningful price drops. Once the price drops start then its game over for the speculators and super-leveraged. I don't know how anyone has really been able to afford the purchase of a home in the Vancouver area the past entire 3 years but the sales pace is finally slowing and that buyer exhaustion point has been reached or at least pretty close.
Prices in the REBGV area for the benchmark single family home did drop last month and it could very well mean that April was the price top. We will see.