Can somebody please elaborate on the anticipated average price increases from Friday’s Free for All comments section, with some areas, such as Vancouver West, projected to a 25% increase for SFH MOM?
I rent on the West Side and can assure you that very few of the properties that I drive by on a daily basis are selling.
Most sit stagnant for many months. Furthermore, anything that does actually sell, seems to sell only after significant price reductions.
My limited understanding is that prices typically start to trend downward at a MOI of 6, and at a MOI of 8, price reductions are more pronounced. So with a current MOI of approximately 12 for the West Side (depending upon source), close to record low sales, and a very high inventory level, I find it very hard to believe that average prices will be up 25% this month.
Would that not bring the West Side to an all time record high price?
If this is just a reflection of more expensive homes selling, while the ‘cheaper’ West Side homes sit idle, then is the average price really a good indicator or measure of anything?
Either way, seems discouraging that with record low sales, record high inventory, record debt levels, the new mortgage rules, and all the global uncertainty and doom and gloom, prices could go up at all, let alone 25% in a single month.
Should I just give up on a correction, which in my mind, is long, long, overdue?