Well, I'm back from vacation and, other than a little bit of rain, it was wonderful.
Here are the details regarding the market activity during August 2008 in the Real Estate Board of Greater Vancouver area. Click on the images to make them bigger.
Sales were 53% lower than last August.
Active Listings are at unseasonably high levels - 75% higher than last year.
Months of Inventory is ridiculously high at over 12 months. This is an extreme level, which is putting lots of pressure on sellers to cut prices and gives buyers the upper hand in negotiations.
The ratio of sales to active listings is so low right now that it appears as if nothing is selling at all.
The current level of inventory and extremely low sales is leading to some very negative price pressure, with the benchmark price falling 2% during August alone and over 4% during the last 3 months. It looks as if prices will be negative Year over Year at the end of September.
The real estate market is a 'market' after all and markets are subject to the laws of supply and demand. A new equilibrium is being reached right now, which is causing prices to fall, as buyers are negotiating tougher deals and sellers are being forced to be more creative or aggressive.
That's it for now. FVREB report will be out soon and I will provide another update then.