|April 2013||April 2012|
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings|
|Months of Inventory|
Last year we had 145 sales in the first 5 business days of the month so we're continuing to lag both in sales and sales/list. Of course the Easter pseudo-stat confuses the week a bit, so don't put too much stock in that number.
My future sales predictor for April says to expect 502 sales.
On the topic of the Economist's idea that prices in Canada are 78% overvalued relative to rents, I've never thought this was a particularly solid indicator, and I don't understand why it is continually cited. Here's a few problems with it that I can see.
- I've never been able to find a detailed description of their methodology. What are their data sources, what are their parameters, what do they mean by "long run average"? Everyone only brings up this graphic which is short on details.
- The metric for determining over/undervaluation is current ratios compared to "long run averages". Nevermind that that term isn't defined, it also ignores the different state of development of different countries. The Switzerland of 50 years ago is a lot more similar to the Switzerland of today than the Canada of 50 years ago is to todays. This might be a moot point though, since they cite Teranet, which is certainly no basis for any "long run" average. It would make a lot more sense to me to compare prices against a standard multiple of rent.
- Doesn't pass the smell test. As dasmo said, 78% overvalued just doesn't compute in the real world.