The Real Estate Board of Greater Vancouver sent out their October Market report this week and it can be said that things are looking a little grim. Home sale activity remains below long term averages with home listings at a four year high. Home sales are down 34.9% from October 2017. They are however up 23.3% from September 2018 sales so there is still hope for home sellers to close a deal before the New Year.
For home buyers this is good news as there is more selection to choose from and we are seeing a downward pressure on home prices meaning there are some deals to be had. For sellers this is not the case as more competition means potential for lower offers and greater difficulty closing deals.
Home prices are down 3-5% in the region since June. This represents a much-needed change in the direction of home prices in Greater Vancouver as prices were beginning to reach astronomical highs and become largely un-affordable for most home buyers. In the cyclical nature of the market this turn is not unexpected as the market tries to return to homeostasis. On an international scale, Forbes posted a 13% decline in new home sales indicating that Vancouver is not alone in this market change. When considering this drop in home sales, we also need to take into account the seasonal fluctuations that occur during this time of year as the weather changes and people prepare for the holiday season. Homes still are selling but the ones that are, are those that are competitively priced, well presented and willing to work with the current market fluctuations.
What does this mean for you as a seller?
- Be patient: Likely your home will not sell as quickly as you would like. If you are prepared to wait it out, you are more likely to close with a better offer
- Negotiate: Be aware that you will need to negotiate, and you may have to accept an offer which is lower than you would like. While you don’t need to accept the first low offer you receive, you also can’t reject every offer that comes in.
- Dress to Impress: In this market first impressions are key, buyers have so much choice they are looking for any reason to write off your place or get a deal on the price. Don’t give them a reason to walk away! Make sure your home is clean and de-cluttered.
What does this mean for you as a buyer:
- Options: You have many properties to choose from, but you still need to do your research! If you know you want a balcony don’t waste the sellers time by viewing a place without a patio.
- Negotiate but understand worth: There is more space in this market to negotiate but that doesn’t mean you should give a low-ball offer on a property that you know is worth way more. Getting a deal – yes! Offering way below asking and the value of the place – probably a waste of your time and that of the seller.
- Buy Now: This really is a buyer’s market and with prices going down now is a good time to consider investing in real estate.
Want to know more about buying/selling in the Vancouver Market? Contact Leo