Vancouver Real Estate – How It’s Done

Because You Asked

There is some discussion on various blogs about town that implied a call to question the statistical numbers I post on this blog. It’s kind of a pre-emptive hanging without hearing the facts. More directly referred to as “shoot first and ask questions later”. Such is the swarm of the blogosphere. To settle the wandering minds, clear away the suspicious imaginings of smoke and mirrors and to cut the rope herein for the purpose of clarity, is my methodology.

Where Do The Numbers Come From?

The process involves a number of steps using MLS data provided by our local system operated by the Real Estate Board of Greater Vancouver. It is understood that there are a number of programs that distill specific data from the board’s data set.

Time Sensitive

All the programs available to Realtors® suffer a single issue that accounts for the majority of differences from the time I post information to the time another blogger posts their compilation. It is assumed that each Realtor® uses a similar methodology in constructing their compilation, but that is too, is subject to time constraints and personal objectives.

Dynamic

Above all, it must be clearly understood that data provided to Realtors® is dynamic. It changes by the minute. The changes result from amongst other things, the time and process taken to transcribe hard copy information submitted to the board by individual Realtors®, to the time it is entered as data and the time in which that data is retrieved. It is entirely possible that I would request a data set at 8 a.m., begin to compile my graph and generate a post only to find that at 11 a.m. my data set is now out of sync. Some Realtors® wait till the evening hours to compile their information in the belief (I have no contrary opinion), that the data sets will be static during that time period. It’s a personal choice and I say, good for them! My choice, is to spend time with my family and enjoy the few uninterrupted moments we have together.

No Smoke Here

The majority of data I record is a result of the following methodology. An area or sub-area and property type is selected resulting in a data set being generated. Presented will be the number of listings, sold and expired properties. Price reductions are indicated by down arrows and price increases are indicated by up arrows. Clicking on the individual listing will then show the price difference or in my case, I have set the columns to show that change. (fig 1)

Manual Intervention

The program does not calculate the total number of price increases or decreases. These must be manually added by flipping sequentially from page to page, recording the total reductions or increases shown on the page and are tabulated and totaled.(Fig. 1)

No Mirrors Too – Quick Stats

Part of this program has a stats feature that generates the numbers I use. A simple click and the total number of listings, solds, and expireds are shown. These include the High, Low, Average and Median prices plus days on market. The other information in this format such as the number of bedrooms, is strictly high and low and of little use statistically. (fig 2)

Recording

The numbers shown in the quick stats numbers (fig.2), 1139 listings, 51 expired, 52 sold and the the average sale price are manually transposed to generate a graph. The high,low and average prices are separately recorded within the post for reference.

Choices

There are a number of other statistical formats available. These involve computer computations that are delivered from one server to another. An example would be all the boards submitting their totals to the Canadian Real Estate Association for their computations.

In Vancouver, MLxchange is the core data set from which all the others derive their information. As before they are subject to time’s vagaries.

Slips and Changes

Nobody is perfect and keyboard entry is subject to errors. Although glaring errors are noted and reported, as was the case of an east side condo having been recorded as a sale of $1,560,000 when in fact it was sold for $156,000 to be fair, the majority of the work is highly accurate and quite reliable.

The key to understanding all of this is entrenched in the standard disclaimer that says while data provided is believed to be accurate it is not guaranteed. At any given moment it changes and your understanding of the change will vary accordingly.

Others

I’m certain that other Realtors® look at numbers and see a different picture. As noted, the numbers change by the minute and I accept that as a reality of our business. A statistical picture is a representation of a moment in Vancouver’s real estate. Because it is never stagnant the 8 a.m. and 11 a.m. graphs will differ. However, both are accurate at that moment.

Communication

In this wonderful world of blogs some people are quick to judge without knowledge. It’s not that I’m unavailable, unreachable or hiding. Phone, email contact or even a comment might have provided answers to the question in advance. With all of our tech capabilities and enlightenment there remains amongst us, those who still hang the man first and ask questions later.

My take on all of this is that it’s just another day in Vancouver Real Estate. :>)

Got a Vancouver Real Estate question? Always happy to answer it. Call or send me an email or twitter me @yattermatters.

Larry

*If statistics are presented in this post the numbers are Courtesy of REBGV. While they are believed to be accurate, they are not guaranteed.
**Statistical numbers are dynamic and may vary.