Vancouver Home Sales dropped into the Pacific in August.
Burlington, ON – September 2, 2016 – For the fifth consecutive month, the Vancouver housing market continued to cool but in August it jumped into a bath of ice water.
The Wealthy Homeowner™ reports that residential home sales in Vancouver totaled only 2473 in August 2016 well off the 3676 sales that would normally have been transacted if last month's pace of sales had simply continued.
From a historical perspective August normally accounts for 8% of the years sales in Metro Vancouver so the 32.7% drop in sales was a new record drop in any single month in this millennium.
“August remained 100% on the exact same trend that it began in April but unfortunately the public was kept in the dark on what the summer and fall markets would look like.” Ross Kay, creator of The Wealthy Homeowner™ said, “The incomes of Vancouver residents simply could not support the additional $150,000 increase in mortgage debt that was previously supported by a capital infusion into the market from foreign buyers since late 2013. While modest yearly increases in mortgage debt could have been sustained by local residents the moment foreign purchases ended in May, the normal price correction required to remove that surplus valuation began.”
Less than 1 in 5 homes listed for sale in Vancouver actually sold during August 2016 which is an indicator for falling prices commonly being recorded when conditions benefit the Buyer side of the negotiation process. The 80.4% Failure rate recorded in August was massively ahead of March's low of 63.3% a time when prices peaked under the pressure. New Listings continue to slide as fewer and fewer homeowners are financially able to trade-up their current home for their next at current prices which is common at this late stage in Vancouver's current Trading Cycle.
“Economists and analysts who rely upon traditional New Listing to Sales ratio or Months of Inventory rely on the false assumption housing markets evolve in a linear fashion when in fact they rise on fall on a curve, which is why no corroborating data exists on the measures they continue to use.” stated Ross. “Most of the housing measures created by organized real estate decades ago for marketing purposes are are now used to justify the market to consumers, something they were never intended to be used for.”
The $832,013 monthly average purchase price paid in Vancouver during August was reflective of the annual purchase price paid back in May of 2015 and as a single month average all the way back to January 2015. Home values which directly support over one half the of nation's net wealth as of July 2016, have dropped astounding 26.3% in Vancouver since the first quarter of 2016 which will months from now will show up in Benchmark and House Price Indices which are not designed as a way of measuring ongoing monthly change.
For more information on real estate, statistics, and buying or selling a home,
visit www.TheWealthyHomeowner.ca
For more information please contact:
Ross Kay founder,
Ross Kay Realty Consultants,
905.541.5297
rosskay@rosskay.com
Burlington, ON – September 2, 2016 – For the fifth consecutive month, the Vancouver housing market continued to cool but in August it jumped into a bath of ice water.
The Wealthy Homeowner™ reports that residential home sales in Vancouver totaled only 2473 in August 2016 well off the 3676 sales that would normally have been transacted if last month's pace of sales had simply continued.
From a historical perspective August normally accounts for 8% of the years sales in Metro Vancouver so the 32.7% drop in sales was a new record drop in any single month in this millennium.
“August remained 100% on the exact same trend that it began in April but unfortunately the public was kept in the dark on what the summer and fall markets would look like.” Ross Kay, creator of The Wealthy Homeowner™ said, “The incomes of Vancouver residents simply could not support the additional $150,000 increase in mortgage debt that was previously supported by a capital infusion into the market from foreign buyers since late 2013. While modest yearly increases in mortgage debt could have been sustained by local residents the moment foreign purchases ended in May, the normal price correction required to remove that surplus valuation began.”
Less than 1 in 5 homes listed for sale in Vancouver actually sold during August 2016 which is an indicator for falling prices commonly being recorded when conditions benefit the Buyer side of the negotiation process. The 80.4% Failure rate recorded in August was massively ahead of March's low of 63.3% a time when prices peaked under the pressure. New Listings continue to slide as fewer and fewer homeowners are financially able to trade-up their current home for their next at current prices which is common at this late stage in Vancouver's current Trading Cycle.
“Economists and analysts who rely upon traditional New Listing to Sales ratio or Months of Inventory rely on the false assumption housing markets evolve in a linear fashion when in fact they rise on fall on a curve, which is why no corroborating data exists on the measures they continue to use.” stated Ross. “Most of the housing measures created by organized real estate decades ago for marketing purposes are are now used to justify the market to consumers, something they were never intended to be used for.”
The $832,013 monthly average purchase price paid in Vancouver during August was reflective of the annual purchase price paid back in May of 2015 and as a single month average all the way back to January 2015. Home values which directly support over one half the of nation's net wealth as of July 2016, have dropped astounding 26.3% in Vancouver since the first quarter of 2016 which will months from now will show up in Benchmark and House Price Indices which are not designed as a way of measuring ongoing monthly change.
For more information on real estate, statistics, and buying or selling a home,
visit www.TheWealthyHomeowner.ca
For more information please contact:
Ross Kay founder,
Ross Kay Realty Consultants,
905.541.5297
rosskay@rosskay.com