Yeah, sales are down across Canada and prices as well.
Average prices across the nation dropped 2% in July on a Year over Year basis.
But it’s really not as bad as it sounds.
That national average is mostly being dragged down by Vancouver where average prices fell 12.2% in July according to the CREA.
So mostly it’s the Vancouver real estate market where prices shot through the roof and are now falling back to earth that is dragging down the national average.
No Canadian real estate market crash yet.
If you haven’t seen it yet, you should really check out this post by Ben Rabidoux over at The Economic Analyst.
This report was put together mid-June and things haven’t gotten any better since then.
It’s a lot of stuff you already know, but some data you may not have seen and it’s jam packed with beautiful charts.
Check out the how the BC economy has grown in construction, but flatlined outside:
And there’s this little data point as well:
Before diving into the data, consider this fun anecdote: There are currently over 5,000 homes in Vancouver metro area for sale for over $1 million according to MLS.ca. In comparison, the NAR reports that in April, just over 7,000 homes sold in the entire US were sold for over $1 million. And this despite the fact that the US population is 135X greater than the metro Vancouver market, the average personal disposable income in the US is 20% higher than the Vancouver average ($37,100 vs. $30,800) while US per capita GDP is higher than the average for all of BC.
Do yourself a favour and read the full post over at The Economic Analyst if you haven’t already.
It’s that time of the week again! Friday is when we do our regular end of the week news roundup and open topic discussion thread for the weekend. Here are a few links to kick off the chat:
–Vancouver market in full retreat
–Championship of lost sales
–REBGV news release for July 2012
–GVREB news release for July 2012
–How much $ has left the economy?
–New site forces realtors to compete
–‘Think Housing’ contest winners
–BCSC alleges million $ fraud
–No new steps to cool market
–New framework for credit unions
–Global slowdown dashes hopes
–Unsold Toronto condos growing
And here’s a couple of charts, the first one is from VMD and shows what the average Vancouver house price has done in the last two years:
This second chart is from Ben Rabidoux and was linked by Jesse – you can draw on your own red line for July:
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
Ring the bell! July 2012 has come to a close.
Soon we’ll see the press releases from the REBGV (and more entertaining from the GVREB) but it’s starting to look a lot like 2008 again.
Sales have dropped off dramatically, we’re down about 16% from last July and about 9% from last month.
Listings are growing slower than they did in the spring, but MOI is close to what it was in July 2008 according to VMD:
July 2012 Sales:
According to madashell we needed to see less than 115 listings on the last day of the month to have lower sales volume than 2008.
It looks like we just squeaked under that, Paulb says we saw 106 sales for the day. Here are the rest of the stats for July 31st:
New Listings 186
Price Changes 137
Sold Listings 106
Inventory posted this update to detached sales in Richmond and it’s astounding.
We’re not at the end of the month quite yet, so this number will rise, but we would have to have an incredible amount of sales to not have July 2012 register as an all time record low number of sales.
Here’s the comparison for July detached sales all the way back to 1995, we’re currently sitting at about half of the low normal level:
Richmond Detached July
1995 = 108
1996 = 117
1997 = 122
1998 = 86
1999 = 113
2000 = 96
2001 = 183
2002 = 154
2003 = 209
2004 = 129
2005 = 170
2006 = 97
2007 = 175
2008 = 92
2009 = 221
2010 = 107
2011 = 123
2012 = 54 (-56%) ***July 29
Just what is happening there to the south of Vancouver? Have houses in Richmond fallen out of favour with buyers for some reason?