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Originally Posted by cmyden
The sales drop for Vancouver seems slight, but hasn't the inventory growth been a bit more dramatic?
I have to say I don't follow Vancouver as closely, but it seems like this guy keeps some pretty decent stats:
http://agentwill.com/weekly-stats/
So far 2010 is actually exceeding 2008's pace for inventory. |
Sales would mirror that graph until the last couple of weeks as well, so there hasn't been a huge excess of inventory. New home development had pretty much stopped for a while during the rescission, so the inventory was soaked up as well. Now everyone is building again, and inventory is likely growing faster than the population.
Quote:
Did Vancouver experience a similar large rise in 2008 inventory and subsequent dramatic price drop in '08 like we did here in Calgary before the emergency interest rates stopped the bleeding?
Bit I guess that's assuming the inventory growth peaks out late in the year like it did in '08.
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We had the rise in inventory, but not as dramatic a drop in pricing. And pricing came back up much faster than in Calgary as well. Different factors will always keep Vancouver and Calgary different.
Actual Vancouver is very limited for land and surrounded by water or mountains, so there is never too much supply. Add to that, people actually desire and value urban living here and it's a very different picture for inner city or close to it. The prices in Vancouver held up pretty strong when everywhere else dropped dramatically.
Surrounding areas like Surrey, Langley etc. are more oversupplied, have lots of land and tend to get hit worse when prices drop. But they are seeing some of Canada's best immigration, so they hold up better than Calgary as well.