The Market has finally started showings signs of slowing down. Between rising interest rates, Buyer fatigue and Sellers wanting the best possible price, the activity in the market has slowed down. Buyers are being a little more picky while looking for a bit of a deal, or have stepped back from the market completely to give themselves a break. I’m seeing a lot of Sellers choose to take their property off the market if they don’t get the price they’re looking for though there are still Sellers who will sell for a bit of a deal – how do you find these Sellers? You have to offer to see how motivated they are.
This is a point in the market that can be hard come to a satisfactory conclusion for all parties. Sellers haven’t yet accepted that their property might be worth a little bit less than before, but Buyers are already expecting to get a great deal after hearing that the market is slowing down, so the difference between the Seller’s expectations and Buyers expectations is high right now, and a lot of negotiations end up falling apart. After some time, Seller’s will understand that the peak of the market is behind us, and Buyers will understand that the bubble isn’t bursting so they may not get the insane deal they’re hoping for.
My advice to all Buyers right now is to keep looking! It’s always true, and especially this year, that summer is slow for real estate (since everyone is out enjoying the weather and travelling) but anyone listed for sale in the summer is probably pretty keen to sell! So if you’re looking for a “deal” you are most likely to get it in the summer. You’ll have less inventory to choose from, but if the property and price are right, it’s worthwhile going for it as the market will pick up steam this Fall, and then again next Spring.
When it comes to pricing strategy, Sellers are generally price high and expecting to negotiate, but occasionally you will still see a property listed obviously low in order to bring in multiple offers. These units will still get multiple offers, but I would be cautioning my Sellers to not expect an incredibly high price, or one that beats a recent comparable. If you’re looking to buy and sell, you can consider offering on properties with a “subject to sale of your existing property” clause which means you’ll only purchase your next property if your current one sells for an appropriate amount. Sellers will be hesitant to accept this clause unless they’re been on the market for awhile but it will give you some peace of mind.
If you’re thinking about selling your property, give me a call to chat about value, pricing strategy and the sale process. There are plenty of details to chat about – including timing, value, staging and your potential purchase – so don’t hesitate to contact me if you’d like to get started kristi@realestatevancity.ca or 778-387-7371. The better you understand your current value and what Buyers may be looking for, the more successful your sale. There is a finesse to dealing with a slowing market.
Here’s a snippet from the Real Estate Board’s Monthly Update:
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,918 in May 2022, a 31.6 per cent decrease from the 4,268 sales recorded in May 2021, and a 9.7 per cent decrease from the 3,232 homes sold in April 2022.
Last month’s sales were 12.9 per cent below the 10-year May sales average.
“With interest rates rising, home buyers are taking more time to make their decisions in today’s housing market,” said Daniel John, REBGV Chair. “Home buyers have been operating in a frenzied environment for much of the past two years. This spring is providing a calmer environment, with fewer multiple offer situations, which is allowing buyers to explore their housing options, understand the changing mortgage market, and do their due diligence.”
There were 6,377 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in May 2022. This represents a 10.5 per cent decrease compared to the 7,125 homes listed in May 2021 and a 4.4 per cent increase compared to April 2022 when 6,107 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 10,010, an 8.8 per cent decrease compared to May 2021 (10,970) and a 13.8 per cent increase compared to April 2022 (8,796).
For all property types, the sales-to-active listings ratio for May 2022 is 29.2 per cent. By property type, the ratio is 18.3 per cent for detached homes, 35.5 per cent for townhomes, and 38.1 per cent for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
Onto the stats:
Vancouver West Real Estate Stats up to and including May 2022
HPI Price for Vancouver West
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price for Vancouver West
Median Percentage of Original Price for Vancouver West
New Listings for Vancouver West
Total Inventory for Vancouver West
Total Sales for Vancouver West
Sales to Active Ratio for Vancouver West
Median Days on Market for Vancouver West
East Vancouver Real Estate Stats up to and including May 2022
HPI Price for East Vancouver
*Unfortunately HPI Price can’t be any more specific than Condo/Townhouse/House*
Average Sales Price
Median Percentage of Original Price for East Vancouver
New Listings for East Vancouver
Total Inventory for East Vancouver
Total Sales for East Vancouver
Sales to Active Ratio for East Vancouver
Median Days on Market for East Vancouver
What questions do you have? Send me an email or give me a call: kristi@realestatevancity.ca or 778-387-7371.
If you haven’t yet spoken with a mortgage broker, get that process started, particularly if you’re going to be buying and selling. It’s helpful to know your options when it comes to owning two properties via a bridge loan, porting your existing mortgage or understanding your penalty fees.
If you have any questions as you start thinking about your real estate goals for this year, don’t hesitate to ask.