Surprised? Home Sales Fell Off A Cliff.
Home prices have fallen 10% on a sales decline of 42% in November. Add in the stock market losses and overall Canadians have lost $191 Billion in net worth.
In Vancouver, sales slide by 62%. The benchmark has dropped by $104,000 so far this year, most of it in the past three months. If the real estate graph over the last three months was a ski run, it wouldn’t be a black diamond, it would be a “Keep Out” sign.
“The situation is unraveling fast in British Columbia….further price correction should be expected in the near term.” -RBC Economics Research, “Housing Trends and Affordability,” December 2008
And the bottom won’t be reached until late in 2009, or sometime in 2010.
Not to stop our ever optimistic realtors though.. “The sales numbers are on track to surpass that of November. Mortgage rates are dropping and affordability is improving every day. Perhaps some buyers are beginning to look for bargains?” (December 11, 2008)
This sums up the situation as far as buyers are concerned: “Anyone selling their property for half the price of the current appraised value please let me know.”
My advice to anyone thinking of buying in Vancouver is to rent for at least the next year. Hopefully prices will go down to a level that reflects reality – and you’ll be ahead by tens of thousands.
December 16th, 2008 at 9:40 am
This is terrible.
Our condo went up 250% in six years and has now gone over a 10% cliff.
We are devastated.
December 16th, 2008 at 11:04 am
So if you paid 200K and then it went up to 500K – it only needs to drop 60% to be back to the beginning. Most people forget this math.
So far – a property worth 500K in June is now worth 400K (if you could sell it). By this time next year it will be back in the 200’s.
This charts shows you what I mean:
http://vancouvercondo.info/2008/12/nov-2008-benchmark-house-price-drops-again.html
Won’t be long if the trend continues.
December 16th, 2008 at 12:32 pm
I guess the “refugees” are all moving to the island, Qualicum, Parksville. Average single family in Parksville/Qualicum price is up a whopping 4% nov 07/nov 08 sales are down -27% average condo up 2% over the last year sales down -57% the real downer is property down -10% sales down -37%.I am told this does not include single family homes with acreage or waterfront homes, or mobiles.I think as the “boomers” keep coming to the island we will be pretty stable the average retiree coming here has sold elsewhere and is not looking for a mortgage.
Real estate, same as fish… market price. This is a good time to be looking a buyers market for sure. Unlike former times people here are willing to look seriously at resonable offers. Cash as always is King.
Cheers Bubba
December 16th, 2008 at 12:53 pm
Fred: I hope your comments are meant as irony.
House prices in Calgary shot up around 300% in less than 5 years. Everyone complained about the exorbitant prices. Now they have dropped a WHOLE 10% and the world has come to an end. Tough.
A home is purchased as a place to live. Increasing value is a bonus. If you purchased a home simply as an investment to be turned over once the prices went high enough, then you are a speculator. If you speculate then quit whining when the bubble bursts. Speculation implies risk and if you can’t take the losses then stay out of the game!
December 16th, 2008 at 1:29 pm
’sales decline of 42% in November’
which is fairly typical. Come Remeberance Day, many Realtors head south until mid January, leave unfinshed business with a partner, as sales are dead until early spring.
The sky is not falling. The market was VERY overheated and was in need of a correction.
Those who bought this & last year will have to actually live in their new house for a couple of years to get their equity out…..back to normal times
December 16th, 2008 at 3:13 pm
Wilson – the 42% decline is compared to last November.
So if the pattern continues, you know that desperation will set in and we’ll see steep declines.
December 16th, 2008 at 9:24 pm
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