Home sales double in California

Sales of resale single-family homes in California more than doubled in the past year — rising 117 percent in October 2008 compared to the same month last year — the statewide Realtors trade group reported today, while the statewide median price plummeted about 40 percent.

The seasonally adjusted annual rate of statewide sales reached 552,750 in October — up from a pace of 254,650 sales in October 2007. This sales rate is a projection of a monthly sales total over a 12-month period, adjusted to account for typical seasonal fluctuations in sales.

The median price of resale single-family detached homes in the state, meanwhile, dropped from $517,240 in October 2007 to $311,060 in October 2008, the group reported.

The National Association of Realtors on Monday reported that the U.S. median home price plunged 11.3 percent year-over-year in October, which was the largest drop since the association began tracking the statistic in 1968. The group also reported that sales of resale homes dropped 1.6 percent year-over-year in October.

Also, a Standard & Poor’s/Case-Shiller report released today found that resale single-family home prices have fallen an estimated 16.6 percent from third-quarter 2007 to third-quarter 2008 — a separate 20-metro-area index revealed that prices have fallen about 17.4 percent year-over-year in September.

The California Realtor Association’s Unsold Inventory Index, which estimates the number of months it would take to deplete the supply of for-sale homes at the latest monthly sales rate, was 5.9 months in October, compared with 15.2 months in October 2007.

And it took a median 45 days to sell a single-family resale home in October 2008, compared with 58.8 days in October 2007.

Economy Delays Home Buys for 27% of Homeowners

While this poll was conducted in the U.S. I am sure the results would be similar in Canada.

More than one-quarter (27%) of American homeowners say that the current economic environment is causing them to put their plans to buy a new or existing home on hold, according to a new Ipsos Public Affairs poll conducted on behalf of Realogy.

Among those who are most likely to say they are putting off a home purchase because of the financial crisis:

• Non-white homeowners (46%)
• Homeowners under age 35 (38%)
• Parents with children under 18 (33%)
• Those with a household income of less than $50,000 (33%)

Despite current hesitation to buy a new or existing home, nine in ten homeowners (91%) agree that owning a home is still the best long-term investment they can make with their money. Nearly three-quarters (72%) say that aside from shelter, they primarily see their current residence as a long-term investment.

West Vancouver Market Update November 2008

You read a lot in the newspapers about the market and they make gross generalizations, but what is really happening in West Vancouver?

Below is a table comparing detached home listings in West Vancouver from January 2008 to June 2008 to November 2008. What we do know is that the average number of days on market has increased and might even be higher depending on how many homes were taken off the market and re-listed a month or two later.

Here are the facts about the market as of November 7, 2008:
Total Number of Listings – 544
Average Days on Market – 99
Price Reductions – 213
% of current listings that have reduced their price – 39%
Average price reduction – 8%
Median price reduction – 7%
Average days on market for homes with price reductions -137
Average days on market for homes that have not reduced their price – 114

The price range of homes has changed since July 2008 when there were 322 homes for sale under $2 million compared to 303  today. Click on the chart below for a comparison of the number of homes for sale by price range from January 2008 to present.

	Jan-08	Jan-08	Jul-08	Jul-08	Nov-08	Nov-08
Price Range	# of Homes For Sale	Avg Days on Market	# of Homes For Sale	Avg Days on Market	# of Homes For Sale	Avg Days on Market
< $1 million	11	75	30	64	48	94
$1.0 – $ 1.25 million	21	75	63	78	69	99
$1.25 – $ 1.5 million	42	50	111	70	86	99
$1.5 – $ 2.0 million	57	64	118	79	100	79
$2.0 – $ 2.5 million	30	82	61	79	67	89
$2.5 – $ 3.0 million	21	53	37	73	54	104
$3.0 – $ 5.0 million	51	107	79	87	82	117
> $5 million	28	136	36	121	38	129
	261	81	535	79.5	544	99

BC 2008 Housing Forecast

The British Columbia Real Estate Association (BCREA) released its fall 2008 Housing Forecast today.

The BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 28 per cent from 102,805 units in 2007 to 73,700 units this year. A modest 4 per cent increase to 76,500 units is forecast for 2009.

The average MLS® residential price is forecast to increase 3 per cent to $453,000 this year. However, home prices peaked in the first quarter and have been edging lower for several months. For 2009, the average price is forecast to decline 9 per cent to $413,000, with most of the decrease having already occurred by the end this year.

Downward pressure on home prices is expected to ease by the second quarter of 2009, as an increase in affordability and consumer confidence induces a modest growth in sales. The inventory of homes for sale is also expected to decline in the coming months as potential home sellers delay putting their homes on the market until conditions improve.