Old Inventory – April 7, 2013
April 7, 2013
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There is a lot of old inventory on the market right now and by old I mean properties that have been listed for 6 or more months. I recently did some analysis to try and quantify this and the following graph shows the results. One thing to note, I do not use the industry standard DOM (days on market) stat to determine this since it is the most manipulated, useless statistic ever produced by the real estate boards. The approach that I use is that short breaks between listings do not reset the DOM stat back down to zero. If a property is listed for 300 days and then is pulled and relisted a month later it has a DOM of 330, not 0.
Here are the somewhat startling results (click to enlarge)
In January of 2008 we had just over 3000 of these old listings and this peaked near the middle of 2009 at 8671 before bottoming out at under 4000 listings. As of April 1, 2013 we have eclipsed the old mark by over 2000 listings and this number is growing daily. The property list includes the Fraser Valley and all property types but still, this is around 50% of all listings! This is yet another factor in a brewing perfect storm which is sure to drive down home prices in the GVRD over the next 18 months