Vancouver West Detached homes. With total active listings at around 700 homes, and sales around 130 homes, the supply of homes at 5.4 was healthy and showed moderation in the demand for detached homes in Vancouver west.
Townhomes. The active listing of townhomes at around 300 units when compared to the August sales around 50 homes, produced a list/sale ratio of 6. The reduction in both the listing and sales for the month helped to maintain the current housing balance around 6 months of inventory.
Condos and apartments. The active listings for condos and apartments registered just over 2,000 homes. With August sales at around 300 homes, the condo market at 6.7 months inventory will cause erosion in the selling prices for condos and apartments. Adverse media reports pointing to a much weaker housing market, will result in erosion on home prices, and sellers more willing to accept lower prices to sell their homes.
The reduction in sales over the past 3 months was cushioned by the reduction in listings, thereby slowing the price decline as the inventory build-up was less dramatic.
Uncertainty over HST. Current market is affected by the uncertainty over the fate of the HST, especially for new home buyers. As the issue with the HST is not expected to resolved for another year, the uncertainty with the HST will negatively affect the housing market.
Many home sellers sensing the weakening market, are starting to reduce their listing prices. Homes are taking much longer to sell and the 30% or so drop in the sales volume compared with previous years had resulted in some home buyers taking a more cautious approach and some deferring their buying decision to a later date. The charts above showed the 12 months Vancouver West listings and sales for detached homes, townhomes and condos are declining.