The Real Estate Expert Network

Summer lull sees properties stay on market

VANCOUVER, B.C. - September 3, 2008 - The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 1,568 in August 2008, a decline of

53.7 per cent from the 3,384 sales in August 2007, and a 47.7 per cent reduction from the 2,998 sales recorded in August 2006. New listings for detached, attached and apartment properties declined 1.7 per cent to 4,331 in August 2008 compared to August 2007, when 4,408 new units were listed.

"In August, properties on average remained on the market longer than we've seen in recent years," REBGV president, Dave Watt said. "As the market heads into the traditionally more active fall season, we have begun to see property listings recede and prices moderate."

Sales of detached properties declined 58.5 per cent to 535 in August 2008 from the 1,288 detached sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 1.6 per cent from August 2007 to $737,985. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 4.3 per cent.

Sales of apartment properties in August 2008 declined 50.8 per cent to 740, compared to 1,504 sales in August 2007. The benchmark price of an apartment property increased 1.7 per cent from August 2007 to $374,366. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined 3.9 per cent.

Attached property sales in August 2008 are down 50.5 per cent to 293, compared with the 592 sales in August 2007. The benchmark price of an attached unit increased 3.8 per cent in Greater Vancouver between August 2007 and 2008 to $463,433. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 3.2 per cent.

As of August 31, 2008, active residential listings totalled 17,950 in Greater Vancouver, a 6.2 per cent decline from the 19,138 active listings seen on July 31, 2008.

I was sitting down and reading my morning PROVINCEnewspaper, and read an article on the state of the U.S. Housing market.

Specifically, the article dealt with what appears a turnaround in the house sales in the state of California. because California constitutes 25% of the housing stock in the U.S., any moves. positive or negative will reflect on the nations housing trends and business.
This review was conducted by a banking analyst, Charles Peabody of Portales and partners.
prices seem to be bottoming out and there has been increase in home sales and reduction in "days on te market' time.
Days on the market "DOM", are important measure as to where the market is or where it may be going. A reduction in DOM would signal a return to a more balanced selling market and eventually as the market strengthens, a sellers market.
An increase of DOM, would indicate that the buyers are gaining an upper hand in increased inventory and better selection of products. Thus the "buyers market"

One paragraph particularly aroused my interest because it dealt with the DOM. The following comments refer as DOM  interim of months.
The dcrease from 16.8months in january to 7.7 months in June, was quite substantial. The home sales rose to 17.5% from a year ago, but the prices plunged 37.7%.

So what are the DOM in the Vancouver market?
In review of the Vancouver area market, not including the Fraser Valley or East of Port Coquitlam, our market looks like this;

Vancouver Housing is at a 7.58 months supply, and Vancouver condo inventory is at a 6.2 months supply.
As the saying goes, statistics are for loosers, so make what you like from this. I am sure that an enterprising reporter could write a headline, "Vancouver market collapses to California's level of activity"
Would he be right? If you saw the numbers without the explanatory statistics, would you believe it?

On the other han, someone could write a headline stating that, "Greater Vancouver Prices up over a year ago"
Would he be right? Of course he would. The statistics show that the home prices are up 7% and condo prices are up 7.8% from last year.

So who is right? They both are, but we all love bad news and that is what sells the papers.
Just two people looking at something with a different perspective.

If you thinking of buying or selling, sit down with your Realtor and get him to give you the goods about the market.
Sometimes it may be something you may not want to hear, but your Realtor is much better informaed than you are and he can give you the Buyers perspective as well.

So, Happy Home Hunting and Happy Home Selling. No matter what the statistics say, someone is always buying and someone is always selling.

For more information on buying and selling a home visit; www.jeffreystark.net