Attached in June

Series Continued

The beginning of each month is always a rush. It’s that anxious time when we want to know what happened in the Vancouver real estate market. First, it is always a general overview. Not satisfied, we then we want specifics. The specifics reduce to a simple question – ‘what’s happening in my neighbourhood?’

Continuing our series, we follow the various states of Vancouver’s market segments using a combination of elements that include Units Listed, Units Sold, Active Listings, and Average Price for each area.

Together, these elements provide a reasonable market snap shot. Today’s visit is with Vancouver West’s Attached properties.

West Side Attached Units Listed

Units Listed have continued to drop from April’s high of 194, a record! The nearest competitor was April of 2008 at 190 units. June 2010 recorded 165.

West Side Attached Units Sold

May’s sold units dropped to 65 from April’s 88 which by no means was the highest number of sales recorded. That happened a year ago in June when 122 sales were recorded. Sales bounced back from May’s temporary low of 65 up to June 2010′s 81.

West Side Attached Active Listings

Book makers are probably losing money trying to figure out active listings. Since January of this year it has been a steady climb to June’s total of 393. This figure is by no means an all time high. That accolade goes to October 2008 with a whopping 479 active listings. What can be said – the game is on and there is time to place your bets. It’s a 50/50 chance either way.

West Side Attached Average Price

The attached average price on the west side has shown its strength this past month. Having dropped to $843,337 in May, from January’s high of $1,028,736 many were taking aim at a severe market change. They were caught short when June 2010 recorded an increase that settled at $938,495.

Double Dip

Vancouver’s Jungle In the City – 1931

Perma-Bears often display a well established bias claiming the Vancouver market can’t go on – it is unaffordable, average people earning average incomes cannot afford average homes. So strong is the bias that a few claim that we are headed for a double dip market. They may be right!

Yet, the Vancouver attached market continues in defiance. With tongue in cheek this defiance reminded me of a financial legend by the name of Bernard Baruch who is attributed with saying that “Bears don’t live on Park Avenue”. Perhaps he is also right. Perhaps this market will continue.

In real terms, it is for sellers a wonderful moment. They get to drink champagne dollars while buyers burdened with large mortgages are at times seen to struggle with the idea of buying powdered milk. Where the answers are that explain this confusing market will be cocktail or beer conversation for years to come.

I for one don’t have the answers. Referring to another Baruch attribution: “I’m not smart. I try to observe. Millions saw the apple fall but Newton was the one who asked why.”

At best, I report what I see in the data and hear on the street. Sometimes both help form a reasoned opinion that may help you make wise decisions. Lately, I find myself starting most conversations with the tried and true 50/50 disclaimer that says – half the time I’m right. Of the rest, I have no memory.