The Real Estate Board of Greater Vancouver have released their stats from January 2007 and according to them the ‘benchmark’ quality adjusted price of a detached house in Vancouver continues to drop. Here’s my updated graph of the REBGV benchmark price including the most recent price peak of September 2007:
Graphs can be deceptive, and this one looks like we’ve lost a lot of value. We are about $20,000 down since September, and below my July 2006 start date, but in the big picture we’re still way way up. If you’re unfamiliar with the Vancouver housing price run-up you should check out the Vancouver Housing Blog for a bigger picture.
So which is more likely to happen? Prices continue to drop to get more in line with rental values, rent prices increase by 200% to catch up with real estate prices, or a combination of the two?
Note also: last month detached houses took the greatest price hit – attached (townhouse) prices are nearly at the September peak, while apartments (condos) are also up from last month. Whats happening there? Are people ‘priced out’ of the detached market and buying condos and townhouses instead? Why are we seeing this steady price drops in single family homes right now?