Popping the bubble

Yesterday's available inventory for sale in Vancouver crested 17,000.

As one contributor to the comments section noted:

To be fair, inventory always expands in the first 4-6 months of the year and then subsides in the later half. The real story is the fact that there has never been this much inventory at this time of year, and the pace of expansion has been startling compared to other annual cycles.

rp1 then noted:

It normally takes multiple years of inventory accumulation to equal a bust. This year it started high and went higher. When a downturn comes, that will happen year after year. Whether or not the price declines really depends on the MOI.

In the late 1990's people bought even though the price was falling because costs were low compared to rent. People are doing the same in the US today. But it also depends on how many people have money during the bust. Many people have already bought, and many incomes are tied to the real estate industry. This obviously makes a bust much worse.

Does anyone know what the all time high for inventory in Vancouver was? What the all time high for MOI (month of inventory) was?

What do you think it will take for sellers to begin lowering their prices?

Post in the comments section or via email... I would love to hear your thoughts.

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