Weekly stats update courtesy of the VREB via Marko Juras.
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings||71%||69%||74%||75%||
|Months of Inventory||
A bit late because I’ve been on vacation. Steady decrease in sales rate but we will be hitting several records this month including lowest August inventory ever (second is August 2003 with 2184 properties for sale), and almost certainly the highest sales (August 2007 was 846). New listings will be up about 12% over last year but just not enough to keep pace with the sales rate.
On another note, we’ve been visiting my folks in the interior for the past week and it was quite clear that the massive inflation in real estate values is not limited to Victoria or the lower mainland.
In 1990 these fully fenced 7 million square feet of land in the north Okanagan valley cost $70,000 and that included a house, a barn, and several outbuildings. That’s about 1 cent a square foot. Now 26 years later, it would sell for about a million or a 14 fold increase in a generation. Sure my parents built a new house, but most of the value is still in the land.
Meanwhile a Victoria detached house has increased by only 4.3 times in that time period. Hence I don’t buy the endless arguments about why Victoria is special. It’s not the climate or the old people or the lack of land. Real estate inflation is happening all over the place and the factors extend well beyond any local attributes. However fundamentally not much has changed in Canada. There aren’t that many more people. We certainly have no shortage of land. So could it go back to being cheap some time in the future? I don’t see why not.