One year ago today, there were 969 Detached homes for sale in the West Side of Vancouver.  Bank Prime was 4%, and the posted mortgage rate for a 5 year term was 7.2%.  In the first 23 days of November last year, only 22 detached homes sold, and prices were in a seeming freefall, with no telling where the bottom of the market was.  Negativity in the Media was rampant and honestly, quite depressing.

Fast forward 12 months.  Today, there are only 475 Detached homes for sale in the West Side, and already 61 have sold to date this month (almost triple compared to the same period in 2008).  The sky hasn't fallen as many "predicted" (gosh I hate that word), but as Bank Prime fell to 2.25% (mortgage rates followed), home sales dramatically increased, and prices followed.  Today, low inventory is keeping pricing levels up, however, as we experienced in early 2008, affordability has been eroded.  With interest rates to surely go up in 2010, we could start to see buyers moving back towards fence-sitting.  My advice to Sellers, don't get greedy.  As we have experienced a short time ago, things can change on a dime.