Aug Market Update: Months Of Inventory OVER 12mo!
The Months of Inventory (MOI) metric for Westside Vancouver houses rose for the fifth consecutive month in June. It has risen from 4.39 in February to 12.51 in July. Attached homes dipped slightly from 7.87 in June to 7.39 in July but Apartments finally rose to over 8 months of inventory in July.
Active listing volumes for detached Westside houses are still over 1000 listings and sales dropped to only 83 homes this month. Please do not be deluded into thinking that things will get better in the fall or next spring. Homes are simply not selling in the same volumes as they have been and the longer people wait to reduce prices, the larger the inventory will grow. Average monthly sale prices are the lowest they have been in the last 12 months for both Apartments and Attached homes. This continues to be a very serious situation.
Vancouver's real estate market is getting hit hard. Historically, sales volumes fall first and then prices fall. We are currently in the plummeting sales volumes period. If you are thinking of selling, DO NOT WAIT: If you sell now, you will still be selling near the top of the market. If you plan to sell, you will need to price BELOW the most recent comparable sales prices. If you don't do this, your listing will stagnate. I just sold a Westside detached home for my clients using this methodology and we were sold in days in a market where most homes are not selling at all. Do visit my web site to view recent sales.
The only bright light for buyers in Vancouver at the moment is that for the time being there is a lot to choose from and Sellers will be very happy to see you. If you have 3 dogs and a growing family, you'll likely need to buy even as prices fall but we can negotiate hard in this falling market.
Remember that Months of Inventory (MOI) is a measure derived from the number of active listings during a given month divided by the number of sales that month. It indicates the theoretical length of time it would take to sell all of the properties on the market if nothing changed. Historically, 0-5 months of inventory has generally implied upward price pressure for the ensuing six months, 5-8 months of inventory meant a flat market with respect to pricing and over 8 months of inventory has, for the most part, precipitated downward price pressure.Do not hesitate to call me if you have any questions and please pass this and my contact information along to any friends or family who might benefit from my services.
By Vancouver REALTOR © Sam Wyatt