Monday, July 21, 2008
20,000 Listings. Is this the top???
We just hit 20,000 listings in the REBGV and the trend would point to even more homes for sale this fall. Currently were up over 60% in YOY inventory and on track for 70%+ by month end. We saw prices decline last month and many feel prices are destined to continue moving downward. We will likely see well over 8 MOI (months of inventory) at month end compared with 3 MOI at the end of last July.
Is this a good thing or a bad thing? Does cheering a price correction make you a pessimist? I guess it depends entirely on your current position.
One thing is for certain, home prices we're growing at a rate that could not be sustained. Now our market is re balancing. I personally would not want to be holding a bunch of pre-sales right now.
What does this mean for buyers and sellers?
Price sharply. Don't get greedy.
Prepare to hold long term, and take this opportunity to negotiate favourable terms.