Average Sales Price Still Matters- And it’s Dropping Rapidly
I want to look at what the average sales price is doing in Vancouver real estate. We’ve all seen the media reports showing massive drops in average sales price. I’ll be the first to admit average sales price is not the most accurate way in determining the current value of homes or the current market. Which is why I’ve teamed up with UBC economist Tom Davidoff. We already determined Sales Prices Decline 8% Since June. However, average price is still very relevant and it should absolutely not be overlooked. Average sales price can be flawed on a monthly basis because it depends on what is sold that particular month. Meaning you could have a whole bunch of condos sold, and few detached houses, thus bringing down the average price. But here’s why it’s relevant. If the average price is dropping on a consistent basis it is a clear indicator that the overall composition of what’s selling is changing. Whether it means more condos are selling and fewer homes. Or fewer high end homes, and more average, lower priced homes are selling. This data can be used to speculate who is still buying and what they’re buying. So let’s break it down.
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