Local blogs continue to ruminate on the pending release this week of the R/E sales statistics for the month of July.
(And for those who are interested in such numbers there is a breakdown at the bottom of this post of the Unit sales per municipality and the percentage drop experienced from July 2009 vs July 2010)
But there was something mentioned on Sunday morning political TV that will ultimately impact Vancouver Real Estate far more profoundly than the start of this current downward trend.
For those of you who believe interest rates will never rise again because the government will not allow it - heed these words of former US Federal Reserve chairman Alan Greenspan;
"There is no doubt that the federal funds rate can be fixed at what the Fed wants it to be but what the government has no control over is long-term interest rates and long-term interest rates are what make the economy move. And if this budget problem eventually merges to the point where it begins to become very toxic, it will be reflected in rising long-term interest rates, rising mortgage rates, lower housing. At the moment there is no sign of that because the financial system is broke and you can not have inflation if the financial system is not working."
In other words, we will be in deflation until the broken financial system is unbroken. And when it does start to repair - look out - because we will then have severe inflation.
And THAT will make this months declining sales numbers look like a selling bonanza.
You can see the Greenspan clip here.
For those are interested, statistics by area from the same source as yesterday:
Real Estate Unit sales comparing July 2009 to 2010
Burnaby East: -64% (57 to 20)
Burnaby North: -47% (215 to 112)
Burnaby South: -52% (257 to 123)
Coquitlam: -45% (304 to 166)
Islands-Van. & Gulf: -75% (12 to 3)
Ladner: -77% (79 - 18)
Maple Ridge: -36% (215 to 136)
New Westminster: -52% (170 to 80)
North Vancouver: -42% (273 to 158)
Pitt Meadows: -46% (41 to 22)
Port Coquitlam: -50% (152 to 75)
Port Moody: -47% (119 to 62)
Richmond: -53% (632 to 292)
Squamish: -3% (31 to 30)
Tsawwassen: -56% (55 to 24)
Vancouver East: -42% (461 to 267)
Vancouver West: -37% (880 to 553)
West Vancouver: -20% (97 to 77)
Whistler: -45% (35 to 19)
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