Slow home sales create window of opportunity

Affordability improves as unit sales and prices decline

Along with a reduction in unit sales and declining prices, the number of new listings coming on to the market also declined in November.

The Real Estate Board of Greater Vancouver (REBGV) reports residential property sales in Greater Vancouver declined 69.7% in November 2008 to 874 units from the 2,883 sales recorded in November 2007.

Residential benchmark prices, as calculated by the MLSLink Housing Price Index®, declined 12.8% between May and November 2008, amounting to an overall combined 8.3% YTD price reduction for all types of residential properties compared to the same period in 2007. Overall the residential benchmark price was $495,704 in November 2008 as compared to $568,411 this past May 2008.

Message From The President
"Times of turmoil, from which we all emerge, offer excellent opportunities to buy quality real estate," says REBGV president, Dave Watt. "For those whose personal finances allow them to get involved, there are opportunities in today's housing market that have not been seen in many years. The local real estate market is not immune to the current economic challenges globally; however, Canada's disciplined lending structure has kept the mortgage landscape steady in these uncertain times."

New Listings Decline in November
The number of new listings for detached, attached and apartment properties declined 10.8% to 3.012 in November 2008 from 3,377 new listings recorded in November 2007. Overall, total active listings declined 4.7% in November 2008 to 18,348 compared with the 19,257 active listings recorded in Greater Vancouver in October 2008.

Sales By Property Type
Sales of detached properties declined 69.8% in November 2008 to 322 from the 1,067 units sold in November 2007, whilst the benchmark price declined 8.6% from November 2007 to $666,525. Since may 2008, the benchmark price for a detached home has declined 13.6%.
Sales of apartment properties declined 67.9% in November 2008 to 410 from the 1,276 units sold in November 2007, whilst the benchmark price of an apartment property in Greater Vancouver declined 8.6% from prior year to $342,315. Since May 2008, the benchmark price for an apartment home has declined 12.2%.
Sales of attached properties declined 73.7% in November 2008 to 142 from the 540 units sold in November 2007, whilst the benchmark price of an attached home declined 6.4% from November 2007 to $426,287. Since May 2008 the benchmark price has declined 11%.

Average Days On Market (DOM) as reported by MLS®
The average DOM reported for all board areas in November was 69 days, representing an increase of 6 days from October 2008, and an increase of 20 days from November 2007.
North Vancouver reports an average DOM for November 2008 of 43 days, representing an decrease of 6 days from October 2008, and an increase of 12 days from November 2007.
West Vancouver reports an average DOM for November 2008 of 79 days, representing an decrease of 6 days from October 2008 , and an increase of 26 days from November 2007.

It is important to remember sales trends differ and will vary from area to area. We would be pleased to discuss your particular situation and provide you with a detailed analysis of the latest and most accurate data.

If you're thinking of buying or selling in the next 3 months, please give us a call! We'd be pleased to meet with you.

Anita Schmitt and Tom Davis, REALTORS® Royal LePage Northshore

Source of data - REBGV MLS® Sales Statistics - December 2, 2008

This communication is not intended to cause or induce breach of an existing agency agreement.