The Real Estate Board of Greater Vancouver has just released the September, 2011 Housing Price Index:

August was a month of speculation, as there was notable change in the market.  Was it a real slowdown and a sign of a changing market, or was it a small blip caused by summer finally arriving in Vancouver?  Now that we are into October, the market stats speak for themselves.  Comparing August with September, here's what we know:

Detached:  The number of new listings to the market has increased by 43% over August, but the number of sales were down by 20%.  This has caused prices to peak and flatten out for now.

Townhouses:  The same trend follows, albeit to a lesser degree.  New listings have increased by 16.1%, and sales have decreased by 8.8%.

Condominiums:  New listings have increased by 25.2%, and sales have dropped by only 5.9%.  With interest rates remaining at ultra low levels, we are seeing more properties in the under $400,000 range selling.  However, statistics are skewed in the Condominium market, as many pre-sale projects are not listed on the Multiple Listing Service®.  Developers are getting creative with incentives, due to the uncertainty caused by the HST Referrendum in August.  Buyers would rather take a wait and see approach, as the transitional rules have not been enacted yet. 

Advice to Sellers:  Adjust your expectations.  Offers within 3% to 5% of your asking price should be taken seriously.  The spring market of multiple offers is history and the new reality is that buyers are now able to negotiate, rather than bid up.  They have more choice, and less motivation, as interest rates are expected to remain low into 2013.  Buyers will wait for the perfect property, rather than buy a home that is only 75% right for fear that they will not get into the market.

Advice to Buyers:  Do not wait for the sky to fall.  I've always believed that in a balanced market, some of the best deals can be had in the last quarter of the year.  With low interest rates, prices stable, and the ability to negotiate, you are in a far better position to buy a home than you were 6 months ago.  Know when a good deal is a good deal, and don't create false expectations because the market has shifted slightly in your favor.