Inside Info, Market Update and More!
Welcome everyone! This is my first in what will be a regular blog of market information, amusing tid-bits. and tips on everything I can think of related to real estate, including information that normally only realtors have access to.
My goal is to help make buying and selling a fun and transparent process. No secrets! As a writer and a former university professor, I believe very strongly that the more educated and informed the client is, the better it is for everyone. If you have questions about what you read in any blog, suggestions for future blogs, or any other questions regarding real estate, don't hesitate to drop me a line. I'd love to hear from you.
Current Market Conditions
Today, some general market information, good news and then the Question of the Day. Happily the spring real estate market has finally sprung! After a quiet winter, sales have really picked up. March sales were up 53% over February - an excellent start to the spring season. Realtors I've spoken have been pleasantly surprised by the number of people out looking at properties. An open house I held recently drew about 40 people - a great turnout.
Byers are out in force, since they feel that properties are more affordable. And they are. Prices of detached properties in Greater Vancouver are down 14% frpm a year ago, with condominiums down 13.5% over the same period. It is definitely more of a balanced market. But sellers, take heart: over the last 5 years, detached properties have increased in price 45.9%, and condos 50.5%. So even if your property is down in value right now, it is still looking strong as a medium to long-term investment.
Advice and Economics
With interest rates at record lows, I believe this is an excellent time to buy. There are some great deals to be had, and my advice to buyers is: If you find what you're looking for, and you've done your due diligence in checking it out (more on what that involves in my next blog) consider making an offer. Otherwise, you may find yourself competing with other buyers for that property. I've seen several multiple offer situations in just the last couple of weeks. However, this gives confidence to sellers, and a cycle of confidence benefits all of us. As I'm sure you know, economics and the "logic" of the market is about psychology as much as it is about the numbers.
Question of the Day:
I need to sell my house but I'm not sure how to price it, and my realtor is suggesting a figure that seems really low. How do I know what the right price is?
In today's market, this is the $10 million question. Or at least the $1 million dollar question, if your house happens to be on the westside! The fact is, it's tricky for everyone, sellers and realtors alike, to determine market value for your property when prices are moderating.
There are a few things to consider. First, it's important to acknowledge that what you feel the value of your home is may have little relation to its current market value. This may sound harsh, it's also true. Buying and selling real estate is an emotional as well as an intellectual exercise, so it's important to try to step back and get some independent advice on it.
Second, ask a couple of realtors to do a Comparative Market Analysis for you. I will discuss the CMA in detail in future blogs but essentially it compares your property to similar properties that are on the market, those that have sold in recent months, and those that have not sold. This last category is important, since it suggests that those properties may have been overpriced. Compare the analyses and discuss them with the realtors. And make sure the realtor actually sees your property before doing the CMA.
Third, know what your timelines/needs are. How quickly do you need to sell? This may affect your listing price. Fourth, watch the market yourself. You need to be current with ongoing price changes, and preferably a bit ahead (i.e. well-priced) in order to sell in a reasonable time frame
Finally, if the realtor gives you a CMA with one suggested listing price and then when you're ready to sign the listing contract suggests a much lower price, ask them why that is? If the CMA is current, then you should be able to rely on that for a listing price (although of course the final decision on pricing is yours).
Next time: Insider Tips for Buyers and What do NINJAS have to do with Real Estate, Anyway?
* The information and advice herein is for general purposes only. The writer assumes no responsibility for actions or decisions taken based on this information. Every real estate transaction is unique, so please consult your real estate and/or legal professional before entering into any contract or agreement respecting real estate.
* All stats from The Real Estate Board of Greater Vancouver (REBGV).