May 15 2011 Market Interview with White Rock Expert RE/MAXer Stewart Peddemors regarding the influence of the Chinese buyer and the White Rock market projections.
Market Trends Index; is a predictive methodology of determining future supply and demand.
If you sell more than you list for a given month then soon you will run out of listings and have more demand than supply thus forcing prices up.
Stability ratios based on a 6 year study from 2005 to 2010 shows that we need about 65% sales-to-new-listing/mnth ratio to stabilize the market
In the White Rock area for the outlined search criteria we had only 2 listings at a time when we had a strong sell through of 14 sales, and then in January we had only 8 listing with a 12 sales. Both of the ratios are much higher than the 63% ratio needed for market stability and put a lot of upward pressure on home prices.
Now that their are more listing just coming on the market with a 94% MTI this could stabilize. The wild card is the high emotion of the current buying frenzy.
Study CriteriaHome size: 1600-2500 sqft, Lot: 3000-5000 sqft, Age: 30-70 yrs, Bedrooms: 3-4 resulting in a sample size = 541/1361=25%
