East Vancouver Monthly Market Update Blog for March 2016
March brought a very welcome but slight increase in inventory, so the market is still considered a strong Seller’s market thanks to the quick and competitive sales.
Pricing strategy has a big influence on what’s been happening in the market.
- Some units are under listed in order to bring in multiple and strong offers – this makes it tough for Buyers to know exactly what it will take to “win” the offer presentation. Terms and conditions in the offer are important, but price is king.
- Some units are over priced because the Seller is confident that they’ll get the number if they ask for it. Without good enough comparable listings to justify the price, I’ve seen some over priced units get past the first week without getting an offer and/or sell for under the list price.
- Some units are properly priced, based on recent comparable sales, quality of renovations and building sales history. Similar to under priced listings, these units tend to see a lot of interest from Buyers.
At the end of the day, multiple offers are still a tough scenario for Buyers to navigate. You need to come in with a strong offer – ensure your financing is as tight as possible, read through the strata documents and do an inspection beforehand if needed – and come in with a competitive price. There are a lot of variables that can determine how the multiple offers are handled. Why is the Seller selling? Is the Seller willing to forgo some security in a subject free offer for a conditional offer and more money? Will the Seller give Buyers a chance to increase their first offer if it wasn’t the best offer, or will the Seller just take the best offer off the bat? Are the other offers subject free? If you’re a Buyer and you love a property, keep in mind that the next unit listed in the building will likely be using the recent sale as a starting off point for price.
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 if you’re a Seller, call us! We want to connect Sellers with Buyers so everyone wins. Let’s take a look at the numbers…
(Green is Detached Houses, Blue is Townhouses, Orange is Condos)
Total Inventory in East Van:
Sales to Active Ratio in East Van:
Average Sales Price in East Van:
Take a look at our specific market updates:
For Sellers – Inventory is low, and properties that show well and are marketed properly can do very well. Contact us to talk about how we can manage the sale of your property to ensure a smooth and successful transaction. You can also fill out our East Van Home Value form to get started.
For Buyers – Contact us to sit down and chat about what you’re looking for and what you need to do to be prepared. We’ve helped Buyers buy for everything from under $200,000 to multi million dollar homes. Sometimes changing certain aspects of your buying criteria, and looking into neighbourhoods you may not have previously considered can be beneficial in finding a great property at a price point that makes sense. Check out out Custom MLS System – it’s a great way to stay on top of the market.
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.