It’s February and we’re full steam ahead into the new year and new real estate market in Vancouver. The activity and interest in the market has continued over from the fall – inventory is still low yet there are a lot of Buyers out there hoping to find a great new home. This leads to strong competition from other buyers and multiple offer situations, which makes it hard to be successful. Preparation, knowledge and quick movement is key to success.
We’re getting a lot of questions about real estate – will the market slow down? will prices keep rising? Unfortunately it’s hard to say as there are so many factors that come into play. Low interest rates make buying more appealing for everyone. Our low dollar makes buying more appealing for many foreigners looking to invest. The transfer of wealth from baby boomers to their kids leads to a number of potential transactions (i.e. a sale of a long time home means baby boomers are downsizing and their kids are either upsizing or entering the market). A busy market for Buyers means many potential Sellers are waiting to purchase their new home before they sell their old home. With the prices of houses continuing to climb, many people who were looking to make the move from a 2 bedroom or townhouse to a house aren’t financially able too anymore (and either stay put or decide to move out of Vancouver) which means people looking to move from a 1 bedroom to a 2 bedroom don’t have as many options either. These busy markets make some people rush to buy thinking it’ll keeping increasing, while others sit back thinking it’ll drop. At the end of the day, your life will dictate your path – when you need to move, what you’re looking for in a home and what you can afford.
Prices have increased significantly in the last year, enough that it’s hard to fathom that they continue to grow. I hope the activity cools off this year to reach a balanced market – one where both Buyers and Sellers can be successful and enjoy a pleasant real estate experience. We need a little more inventory to make that happen, so all eyes will be on the next few months. For now, let’s take a look at the numbers…
(Green is Detached Houses, Blue is Townhouses, Orange is Condos)
Sales to Active Ratio:
Average Sales Price:
Take a look at our specific market updates:
For potential Sellers out there – we always suggest you get your property on the market sooner rather than later in the New Year. Not only is this to beat the market and take advantage of strong (read: high priced) comparable sales from the fall to support a strong selling price for your property, but the number of new listings should continue to increase through to the Spring, so the sooner you get yours on the market, the less competition you’ll have. If you’ll be buying a new property after selling your current home, selling early in the year gives you a chance to take advantage of buying in the Spring Market when inventory is often at it’s highest (if you wait to long to sell, and thus buy, you might be faced with less inventory in the Summer months).
For potential Buyers out there – feeling overwhelmed? Start working with professionals. Whether that’s speaking with a mortgage broker to get a handle on your finances and what documents you need to be pre-approved, or if that’s connecting with a Real Estate agent to learn the first few steps in buying your first home, start now before the market picks up in the Spring. There is no pressure when it comes to buying, but the key to success is preparation and knowledge.
Don’t hesitate to contact us if you have any questions. We are a team of six top agents working across Vancouver, ready to help you reach your real estate goals this year.