Vancouver Real Estate - 7 Days on the East Side
Posted September 5th, 2008 in Buying or Selling, Real Estate, Statistics
Active Listings
- 1,056 Active Listings
- High $1,9880,000
- Low $335,900
- Average $771,369
Expired
- 65 Listings Expired
- High $1,780,000
- Low $515,000
- Average $787,916
Sold
- Uh-Oh! No Listings Sold in this time period
- High $000
- Low $000
- Average $000
Price Reductions
377 Listings have reduced their price. 35.7% of the Active listings have reduced their price.
Thoughts
For this period Vancouver East has seen an increase of expired listings. Not particularly alarming as a greater number of listings expire during the end of the month. Over one third of the listings have succumbed to price reductions and with no sales recorded for the period and moment in which the data was retrieved may be an indication that prices are still too high to attract buyers.
I’ve said it before. Price reduction strategies must be more aggressive. There are buyers hovering but affordability continues to be an issue.
Recommendation
No sales during this time period is an eye opener and should result in a more pronounced wake up call to Sellers. In the past I have suggested that you sharpen your pencils. Forget about that! If you are serious about selling it’s time to get a new sharpener.
Got a Vancouver Real Estate question? Always happy to answer it. Call or send me an email or twitter me @yattermatters.
Larry
*Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed. **Numbers provided may vary as they are dynamically posted by the REBGV.
hey, tell me something i don’t know, something positive and happy, maybe even optimistic. How about what to look for when buying a place. is it better to buy a place that has been renovated or one that needs upgrading? you get the point.
Coming from someone looking to buy in the near future (1-2 years) this IS positive and happy. Seeing an open house I looked at 3 months ago for $419K now selling for $349K fills me with joy. Next year when this unit is within a reasonable $289K I might actually purchase it.
@ Mila,
You ask for optimism! Depending on your perspective of the market place (Buyer vs Seller) this information may be considered optimistic.
Your other question deserves a post. Thanks for that.
@ Matt
Watch the inventory numbers. As you are aware, Rob, Paul and others keep track of that number. When supply drops to 3 - 4 months (some say 6), it will be time to make your move.
Cautionary Note: prices on average, have not yet to take the huge anticipated hit as some bears had hoped for. But who knows, you may get that place for $289.
Best way to find out is anti-up and put your money on the table. If you win, you get to crow, if not - meh, move on to the next. Why wait?
This too shall pass. Once the elections are out of the way, we’ll all begin to spend like made fools as we’re inclined to do.
Thanks Larry. I’ve been following the numbers for over a year now, so I’ve watched this market ‘fall off a cliff’ in real-time, which is equivalent to watching paint dry as I’m sure you’re well aware
I don’t take much value from the average however. Your graph is a good indication of why. The sales numbers, which have only been getting worse, are so low that all it takes is a few high-priced sales to push the average way up. All that matters to me is that the prices of properties I’m looking at are coming down because none have sold in 3-5+ months.
As for why wait, I guess my best response is because I can - and I believe prices are in for a 20% correction. I don’t think anyone is going to accept an offer 20% below their asking price, not yet anyway since they’re full of renewed hope that things will pick up in the Fall. This does lead me into an interesting question though, is there an ideal time of the year to try a lowball offer?
Either way, by renting I’m saving an extra grand per month for a downpayment - the ultimate goal being to bring my monthly mortgage payments to as low as I can. The thought of paying near or over $2K/month for a mortgage, fees/taxes incl. terrifies me.
I’m very interested to see how this Fall will play out, and then will potentially make a move in the Spring unless the market is still as dead as it is now.
This is proving to be a good exercise in patience.
@Matt,
If history holds true, then you can expect a further quiet period in the run up to the two elections north and south. The uncertainty or diversion that elections bring (at least in my experience), has in the past always slowed the market. Others may disagree.
I’m sure somebody out there has the time to do the history of average price or DOM compared to federal/provincial election dates.
If my assumption is correct, then Sept./Oct. and maybe Nov. will be a wash.
You are buying the beer if I’m right.
larry:
interesting post!
buyers strike?
obviously no self respecting speculator
will step up to the plate, no longer can they buy and
flip for an easy $100K profit
will this translate into a week of no sales for condos?
or a week of no sales on the West side?
we live in interesting times
No Vanouver East sales last week? Are you sure? When I look at the Hotsheet search on MLS for the last 7 days I’m seeing 10 SFD sales and 14 multi-family sales for Vancouver East. Curious of the source of your numbers.
@ blueskies
Don’t know. If another spot check shows that then I presume it to be the case as we all rely on the same source. You may want to check out the suggestion for SurryJoe
@SurreyJoe
Check a couple of posts back “How its Done” for your answer.
Larry,
Living in East Vancouver, I have to say that I’m kind of happy that the market is a bit stagnant or depressed. Simply because affordability is always an issue, and it has started to plague the East Van area.
But a depressed or stagnant market isn’t always a bad sign, sometimes it’s good, I would think. What do you think?