33 yorkville condonow . House prices in Vancouver plummeted by 20%. Zolo, Canada’s largest real estate website, tracks MLS housing sharing system data in real time.Please Visit: 33 yorkville condonow to Get Your VVIP Registration Today!
It was found that from August 1 to 14, only three homes were sold in West Vancouver, the region with the highest prices, down 94% from 52 in the same period last year, while sales in Richmond, where Chinese buyers are concentrated, also plummeted by 96%. As for the Vancouver area as a whole, the average price of homes sold fell 21.4% in 28 days, 25.1% in three months, and even 7.4% lower than the average house price in the same period last year.
The Canadian Global News Network (Global News) has compiled a chart based on Zolo data, and the decline is so steep that one can almost hear the “whew” of house prices falling.
The changing trend of average house prices in Vancouver from January to August 2016. Chart source: Global News, data source: Zolo.ca.
Zolo came to the conclusion that house prices fell sharply by calculating the average price of all homes sold in MLS. Tsur Somerville, an economist at the University of British Columbia, said: “this is a bad method of calculation.” He suggested that the decline in average prices could also be caused by a decline in sales of high-end homes.
Jerry Jiang, PhD in financial statistics from the University of Florida, gives a simple example to illustrate the problem with this method of calculation. Suppose there are 10, 000 houses for sale in Vancouver in June, 5, 000 are high-end houses, the average price is 1.5 million, the other 5, 000 are medium-and low-grade houses, the average price is 500000, the average price is (150, 500, 000, 50, 000, 000) / 10000, and the final average price is 1 million.
Suppose there are only 6500 houses for sale in Vancouver in July, of which 1500 high-end houses have the same average price, the number of medium-and low-grade houses remains the same, and the average price remains the same. Because there are fewer high-priced houses, the overall average price is (150,1500,505000) / 6500 = 730700, which is indeed 27% lower than the average price last month, but the average price of high-end housing is still 1 million, and the average price of medium-and low-grade housing is still 500000. In this case, the decline is not housing prices, but the proportion of high-end housing in the sample.
In other words, when the proportion of houses at different prices in the real estate market changes, the average price data fluctuates greatly. As a result, there may be no change in all grades of housing prices, or even rise, but due to the reduction in the number of high-priced houses sold, resulting in a decline in average prices. ” Jerry Jiang told Interface News.