Big Drops More a Return to Normal, Not Cause For Concern Yet..
So the August numbers are in and there is plenty for the media to run with, if they want to claim the market is doomed. The 26% drop in sales for August 2016 when compared to August 2015 is large, but the total amount of sales for the month is just 3.5% lower than the 10-year average for August. All of a sudden that number is much less scary. Remember that August is typically one of the slowest months on the calendar, and last year’s August was unprecedented in its activity. Now it is still quite a drop from last month, but prices have remained strong at 4.9% higher than the past 3 months and the sales-to-listings ratio is still well into the sellers market range at 29%. In reality, August is a terrible month to base predictions on, late September and into October will be the true litmus test for whether we will see a slump or a soft leveling.
The Quick Numbers
Where Does The Market Go From Here?
As I alluded to earlier, the next two months will give us a much better picture of where the market is headed as opposed to August when we are all most concerned with squeezing out the last few weeks of Summer holidays. August was a slow month relative to the crazy year we have had, but not at all alarming when compared to the 10 year average for the month. This market is much better for buyers with the comfort of being able to write subject offers, and negotiate on dates and price. September and October will likely see a push of buyers eager to take advantage of this, so with a sharply priced listing, seller’s can still realize the great gains of this past year, and get into a strong position as a buyer on the other side. Please fill out our home evaluation request form (takes only seconds) if you are considering selling, and we will make sure you get the best advice on price.
A big thank you to everyone who supported my ride to conquer cancer! My team raised over $130,000 this year and rode an emotional 250km in two days from Vancouver to Seattle. I have already signed up for next year, you can support me here.