Friday, October 03, 2008

REBGV Area Records Year over Year Price Drops

Well, its a day many real estate bears have been looking for - the day that the average detached house in the Vancouver area would be cheaper than 1 year prior. That day is now and it will likely continue for quite some time now as prices are continuing to fall.

The active listings level in the local market is at record levels.

Sales are abysmally low for this time of year.

The months of inventory has skyrocketed throughout the year and is remaining at highly elevated levels.

Prices seem to fall when supply is high and demand is low. Funny!

In fact, the correlation between the supply/demand scenario and the consequent price changes is uncanny!

These days of turmoil in the financial markets are what many real estate bears have been warning would come because of the exuberance and overallocation of resources toward housing. It brings me no pleasure to see this turmoil and I wish we could have avoided it but it does feel good to be prepared rather than unprepared.


mohican said...

FVREB stats to come later today.

Robert Reynolds - HMR Insurance said...

phychological tipping point?

exx said...

Great work as usual Mohican, it's much appreciated. I look forward to these updates every month.

Panda said...

Thanks again for the plots and analysis! I feel a much deeper understanding of housing markets from your efforts here.

Strataman said...

Thanks Mohican great stats and graphs...a whole bunch of Property managers in Van get them just so you know..was brought up and a weekly board meeting! :-)

pricedoutfornow said...

Price drops are so slow, at what point do they accelerate? It seems like realtors keep dropping prices $10,000 at a time. I've been watching V721997 a townhouse in Vancouver. Started out at $589,000 a few months ago, now it's at $539,000. Realtor has open houses almost every weekend, sometimes even on Thursdays (??) When will we see significant price drops?

reboot said...

a picture is worth a thousand words.
nice pics. thnx