The Lull continues!
The market is quieter that we have seen for awhile but properties are still selling and prices are holding fairly steady.
Here is a link to the Real Estate Board of Greater Vancouver media release.
This is the ‘official’ statement with the media release from the Real Estate Board of Greater Vancouver (REBGV):
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”
How I See It
We are now 2 years into a much ‘slower’ market than what we experienced in the previous five or six and especially during the fast run up from late 2014 through to the middle of 2016.
Right now sales are slower – last month they were 28.7% below the 10 year average and the stock of available listings is growing with the reduced demand.
So we may ask – what is really happening in our real estate market?
To get the best insights we need to look at what is actually transacting: let’s focus on the properties that are selling rather than those that are not.
From late 2014 through to the first half of 2016 we experienced a fast market prompted partly by external capital (international and interprovincial) and what led to a bit of a ‘commodity’ market. This amount didn’t need to be much – the 5% foreign buyer ratio during those times actually affected a much larger portion of the market because of a ‘multiplier effect’. One external participant bringing new capital, especially if it was a large amount, displaced the seller of the property they buy who in turn reinvested and a chain reaction of 4, 5 or more sales are often predicated as a result.
That is not happening right now but there seems to be a pervading sense of conventional wisdom that that phenomenon will at some point return. This underlying intuition seems to be leading property owners to look to the longer term for value in their real estate. My day to day observations indicate that most people currently seem to be less inclined to ‘cash out’ now and reinvest later – because ‘later’ may come sooner than they think!
At any point in time there is a random process of market participants that want to move for a myriad of reasons: the growing family needs a larger home, downsizing, relocating for employment and business, school changes, financial necessity, some owners splitting up and some getting together. This is the market we are seeing today.
Sales in a quieter market are typically driven by motivated sellers while those less motivated tend to make up the ranks of the growing listing inventory as well as expired, cancelled and terminated listings.
So what is selling now in the middle of 2018? Typically affordable but desirable properties are being transacted by average people, each addressing their own specific current and future needs and wants. You might say it is a very ‘real’ real estate market.
It is a good time to make a move, if you need or want to make one, because there is more time to do it carefully and methodically. There is a distinct lack of the urgency we saw 2 and 3 years ago but still lots of opportunity to make well considered, long term repositions of your property holdings, whether it is one or several titles.
Those that currently have cash buying power in hand are able to search for motivated sellers and drive sharp bargains.
It truly is an interesting time: do your research, plan carefully and act prudently but definitively!
The current ‘level’ market provides a ‘low stress’ time to make a move.
Call me to bring professional and experienced ‘added value’ to your real estate needs.
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