Sunday, June 15, 2008

Vancouver RMLS Market Action Report – May 2008

The Regional Multiple Listing Service released the Market Action Report this week and the median sale price for May 2008 was $250,000 this is a 6.4% decrease from the median sale price for May 2007.

The Vancouver residential real estate market peaked in July 2007 with a median sale price of 269,900. Prices have now fallen 7.4% from that peak.

Months of supply (total inventory/monthly sales) sits at 12.6 months compared to the 7.1 months of supply for the same month last year. A balanced market has about 7 months of supply.

The first graph compares the median and average sale price with the months of supply. Click on any graph for a sharper image.

The second graph shows the total supply of homes available for sale. This is simply a calculation of the months closed sales multiplied by the months of supply. There are currently 5,040 homes for sale; this is an increase of 21% from the same month the year before.

The third chart shows closed sales by month. Closed sales fell 32% from the same month the year before.

The fourth chart shows new listings by month. New listings decreased by 14% from the same month the year before.

The final graph shows how affordable the median priced home is for a family of four. History indicates the ratio is usually between 2.5 and 3.0. Prices would have to fall 19% from the current median for the index to reach a ratio of 3.0.