Epain Homes

Rather than post a poll I figured I would post something new. So let’s see how long I can stretch out this simple question. Here I go…

The Vancouver real estate market entered a severe slowdown in 2008. After a lacklustre spring market we reached a point at which the slowing sales and mounting inventory combined to end price gains. Prices have fallen every month since April (Benchmark SFH) and the economy has gotten far weaker since the “correction” began.

All things come to an end. The bubble has burst, and we will recover. However with the economic weakness bearing down on us, this year does not look good. Interest rates are falling rapidly which is great news for our market. Unfortunately, I don’t think it’s enough. There are far too many storm clouds on the horizon, and we may have to weather an economic hurricane before we see a rainbow.

Real estate has proven itself a tremendous value for long term wealth creation but it’s not always the best time to buy.

How do you think this will play out? Will we get a dead cat bounce this spring? Will we flatline for a few years? We will rush to new price highs this spring? You tell me.

I hope you all had a merry Christmas and a happy holiday season with your families. The snow as been unreal. I like it very much, but it does create some chaos.

The retail season was a wash with the weakest retail sales numbers since 1971. You could see it out there with all the sales prices. Some pretty great deals.

I just spoke with a mortgage broker at CIBC and they quoted me a 4 year fixed at 4.69%. Great rate but I doubt it will spur idle home buyers into a short term purchase.

Sales came in at about 924 sales v. 1,897 last December. That’s a 51% drop in sales activity. Inventory took a haircut and settled at 16,200 listings, down from 19,462 in November. We are now up 80% YOY in inventory. MOI is sitting at 17.5 months.

With the holidays over things will get back to normal. Look for monthly, weekly, daily and inventory chart updates this weekend.

Have a safe and happy new years eve!

Sales

Inventory

Benchmark Prices:

“Trends in the latter half of 2008 showed a consistent month-over-month decrease in residential housing prices, adeparture from the rising home prices and record-breaking sales that were experienced in Greater Vancouver for much of this decade,” said REBGV president, Dave Watt.

MOM price declines

detached -2.72%
attached -.7%
apartment -2.64%

Full Stats Report HERE

Inventory Charts HERE

MOI

The most constricted market award goes to Squamish which reeled in 5 sales for December. Not one SFH sold.