If you have read my monthly real estate market update, you are aware we are currently deep into a buyer's market shift.
To define how we Vancouver REALTORS® define the market, assume an old fashion scale.
On one side we have "Supply" and on the other "Demand".
- When demand increases, obviously the number of inventory in the market decreases and get sold quicker than being listed. This stage is called "Seller's Market" and the sales ratio, which is the percentage of Sold Listings to Available listings are above 20%.
- When "Supply" and "Demand" scale tip balances in the middle, that is an indicator that every supply and inventory meets demand of the real estate buyers steadily and the sale ratio is at 15%-20%
- When the scale tips toward a lower demand, real estate inventory (Supply) increases and this is called a buyer’s market with sale ratio being anything under 15%.
Currently in Greater Vancouver area we are at 8% sales ratio and are in a deep buyer's market. High level of inventory being listed every day and competition between all Vancouver properties for sale. Demand, or the real estate buyers, are holding back and are not pulling a trigger of making offers. This hold off, maybe a reason of many third party factors, such as:
A) Mortgage and bank interest. This is true, since the Bank of Canada announced the mortgage stress test, many real estate buyers faced a lower affordability.
B) Economic imbalanced and uncertainty. With our federal government confusion about pipeline, and trade deal with United State, and many other financial policies being procrastinated constantly, buyer's, or in general consumer's confidence is lower and paranoia of what to expect in near future kicks in.
C) Local provincial government and municipal control and their interference in real estate industry. Specifically, in BC and Vancouver, where many additional taxes where introduced effective January 2018 and its impact on local and foreign real estate purchasers have been tremendously harsh.
Now that we have the understanding of where we are in current market, most of my real estate clients whom own a property in BC, are concerned how to effectively list and sell their property in this buyer's market.
Let's make one thing very clear. Yes! we ae in a deep buyer's market, but there are yet activities and properties are being sold. This activity although not comparable to what we witnessed for the past few years, but yet any activity is a sign throb in real estate heart. And these sold listings they all have few things in common:
- Extremely Attractively Priced
- Beautifully shown and cared for.
- Wonderfully exposed and marketed.
The very important three factors above have been constant in generating these recent activities and benefited the real estate owners and buyers combined.
In order to successfully sell a listing, even in this market, PRICE it as you're looking forward and not in the back mirror. This is very important for every homeowner that is willing to sell their home in good faith and is not just trying out the market to see what they can get.
Clean, declutter and stage your property to show it well.
and lastly and one of the most important other item on the menu is to choose a knowledgeable, skilled Realtor to expose and market your property in the best possible ways.
Want to know how my marketing is extraordinary? let’s meet and discuss.