Monday, November 16, 2009

Vancouver median priced home is now affordable

The Regional Multiple Listing Service released the Market Action Report this week and the median sale price for October 2009 was $200,000 this is a 14% decrease from the median sale price for October 2008.

The Vancouver residential real estate market peaked in July 2007 with a median sale price of $269,900. Prices have now fallen 26% from that peak.

Months of supply (total inventory/monthly sales) sits at 6.4 months compared to the 13.7 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 3,424 homes for sale; this is a decrease of 30% from the same month the year before.

The third chart shows closed sales by month. There were 535 closed sales during the month; an increase of 52% from the same month the year before.

The fourth chart shows new listings by month. There were 765 new listings during the month; a decrease of 13% 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. The current ratio is 2.96 therefore homes are affordable again in Vancouver!