Sales were 1,418 - down 31% compared to June last year.
Active Listings were 11,295 - up 47% compared to June last year.
Months of Inventory stands at 8 months at the current sales pace.
Median prices were mixed in June with detached and apartment prices rising and attached prices falling.
The benchmark price fell -0.3% during June and year over year the benchmark price has risen only 3.6%. We are fast approaching negative year over year price changes.
The price changes last month fell within the expected range when looking at the months of inventory metric. Prices will continue to fall while the months of inventory remains high.
Cheers.
PS - Kudos to the FVREB staff for issuing the corrected data for the active listings after they changed they way the data is measured last month.
My understanding of the benchmark price is that it is adjusted for quality. This means that 4 bedroom houses with 3 bathrooms are compared to each other and similar square footage houses.
ReplyDeleteAdditionally the benchmark does not correct for location disparities in value. For example, a house with 4 beds and 3 baths with 2500 sq ft on a busy street backing onto some high voltage power lines would be in the same benchmark as a 4 bed, 3 bath, 2500 sq ft home on a quiet cul-de-sac backing onto a greenspace.
My anecdotal observations are that it is the latter homes that are selling right now and the lower quality locations are not selling.
This would mean that true quality adjusted prices are already YOY negative. This seems congruent with the anecdotes I'm hearing out here in the Valley that houses are selling at or below last year's assessment in many cases.