Wednesday, November 05, 2008

FVREB October 2008

One could undeniably say that real estate prices in the Lower Mainland collapsed during October 2008, which is likely to be the first of many months of drastic price reductions.

The story is rather simple.
1) Prices went up a lot
2) Nobody could afford to buy anymore
3) People still wanted to sell so active listings rose significantly

4) People still can't afford to buy and sales dropped off a cliff.

5) Consequently the months of inventory rose to unprecendented levels.

6) Prices began to moderate.
7) Prices began to fall
8) Prices began to fall quickly.

9) Prices are now lower than one year ago.

10) Prices will certainly fall much further given the supply of homes on the market. The correlation between the supply/demand scenario and price changes is rather strong.

Welcome to your real world, made in Vancouver, real estate bubble and crash.
Yours in lucid sanity,

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