Looking at the statistics we see that we are still maintaining an increase of almost 6% in annual sales ending in June 2013 over the same time frame last year. During this time, inventory has dropped 9%. Prices continue to fall... 3.7% since last year and continue showing signs of firming up. Overall, prices are down a modest 11% from the highest prices ever recorded in 2008. This is a small loss in home prices compared to many other markets in Canada and the US. The attractiveness of our region continues to attract Buyers from all over the world.
We are in the 5th year of a falling market. The increasing sales and dropping inventory indicate that we are near the end of this down cycle, at a market bottom and progressing towards a gradual recovery.
Since the British Columbia provincial election in May of this year, we have watched the sales numbers pick up and the inventory drop even faster.
The market over the next 12 to 18 months will continue to be characterized by a gradually increasing sales, followed by lower inventory. Prices will continue to fall very slightly, then firm up (bottom out) and then slowly start to rise. Timing will depend on how the world and national economies fare out over the coming months.
As we hear more national news about the decline in the real estate market, we have to remind ourselves that this comes from national media monitoring the markets in major centres like Vancouver, Toronto and Montreal. We also have to remind ourselves that real estate markets are very localized and what happens in one market is not necessarily what is happening in other markets.
If you have any questions about the market, please feel free to contact me at any time. You can click here to go to my stats page with graphs and detailed data.