Just one question. It mentions in the article that the sales volume has decreased by 50%. Are the number of homes up for sale down as well this year, month?
Good questions. The number of homes currently on the market is higher than the previous month. The number of homes on the market in November of 2008 was 9,925 and was lower by 7% compared to November of 2007 which had 10,692 homes for sale.
The key figure in all this is that the average time on the market has increased dramatically year over year. In November of 2007 average days on the market was 32 and November of 2008 was 41. This is a significant increase in days on the market and also points to our slowing real estate marketplace.
The Bank of Canada dropped prime 3/4% today (December 9th, 2008) and of course the banks are following, except they are only dropping bank prime 1/2% so the new bank prime will be 3.5% rather than 3.25% Nice isn't it, they will make a 1/4% extra profit on billions of loans that they have.
I hope this helps.