PACE of the Market –July 2022

I’ll change the 10 year average Comparison Order a bit – to focus on PACE Benchmarks DAYS on MARKET — yes there are two BOTH ARE SURGING UPWARDS MONTHS OF Supply – also two Sales versus Inventory (two absolute Month-end Numbers that cannot be fiddled-with or fudged) Sales To New Listing PERCENTAGE (although many call…

PEAKS –in Prices and in MONTHS of Inventory

Inventory Ron Hauth’s 2007 Chart shows Max Peaks of Inventory in Global Monetary Crisis (aka G.F.C.)2008-09, Low-Low spots in 2016-17 Immediately followed by 2017-2019 Peak (caused by Apr20/17 16 points of Gov’t Market Intervention) Then Kovid Spike Back to Record Lows due to near-zero Mortgages & Now 3.23 months of INVENTORY … PRICE PEAKS RBC’s…

PRICES – July 2022. Are we Half way to the Bottom? 1/4? 3/4? Anyone estimating beyond 2022 is just wondering – there are too many variables? So, What to Do? Act or Wait? Buy or Sell?

First Establish “What Price you are NOT going to Get/to Pay” – Ken McLachlan 2008, Broker of Record RE/MAX Hallmark® Realty Ltd Yep, start there with the February 2022 Benchmark … everything else is relative. WATCH for “the Line” to break down Through previous year(s) 2017 most recently and then 2012 and 2008, but you…

The inevitability of Currency Devaluation (one component of INFLATION) is why Real Property is one of the Tangible Assets that folks USE to Survive the effects of that INFLATION (a measure of the increase in cost of an “item” included in the Consumer Price Survey (yes … it is described as a very large-sampled (60,000 they say, shame I’ve never been asked to participate -have you?) ‘survey of households’, ie not an examination of actual items)

Nominal Prices AND CPI Adjusted Prices since 1972 Look at adjusted Prices in Late 1970s vs the early 1990s vs the GFC in 2008-9 Take a moment to ponder if Raising Interest Rates will “succeed” again? Will ‘THIS TIME’ emulate either of the earlier battles? SAME ADJUSTED PRICES but Prior Peak of 1989 equals 100