The Holiday party season is upon us and with the election over and Trudeau sworn in, you are going to need something to talk about beyond the rainy weather. S o here's your opportunity to brush up on fast-facts about Vancouver's (still) booming Real Estate Market!
Vancouver market still Booming
I recently came across an article from the New Yorker; "Real Estate Goes Global" BY JAMES SUROWIECKI, where he explains that most expensive housing market in North America is not where you’d think...New York City or Orange County, California, but in-fact it is our very own Vancouver, BC. The author is intrigued. Yes, Vancouver is a beautiful city, an extraordinary place for recreation and enjoyment of nature. However, nothing about Vancouver's economy explains why in a place where the median income is only $70K... a single-family house now sells for "close to a million dollars apiece and ordinary condos go for five or six hundred thousand dollars."
"Close to a million?!" That had me doing a double-take!... Only to find out that indeed, the article was written approximately 18 months ago. "Close to a million" doesn't cut it any more. The average Eastside single family home has risen from $995K just last October to a whopping $1.288M this past month.
Prepare your "Elevator Speech"
Many Realtors take advantage of the Real Estate Board's monthly stats package, and use the data to create newsletters and postings with a plethora of information! The Board tracks all kinds of stats including inventory, sales, price, days on the market etc. It's an awful lot of information! Sure, we too provide full statistical details in our Monthly Newsletter but in the meantime - 'Tis the season to prepare your Vancouver Real Estate "elevator speech!" So when you are standing there, cocktail in hand, you'll be ready to impress!...
Inventory... What inventory?
1st important Real Estate message; Inventory is at a record low. Buyers are plentiful and Sellers are "staying put..." Sellers are aware that the market strongly favours them. But where will they go? They have no interest in participating in bidding wars. Which brings us right back to... inventory is remarkably low! The truth is, there are some very interesting, quality "attached" choices out there for downsizers and plenty of pre-construction and new-construction options to consider as well. I happen to know many downsizers who have cashed out and sold their family homes. They are elated with their new "cosmopolitan" lifestyle and the liberation of low maintenance living and worry-free travel.
We would be delighted to review your options with you and while at it… provide you with a home evaluation that will give you reason to feel especially festive this season!
Next... All of Vancouver homes are selling at their list price, or (+/-) 1-3% of list price. Unless you live in Tsawwassen where the homes are selling, on average, 8% above list price. The secret is out... buyers have discovered VALUE in Tsawwassen, especially in the $900K - $1.25M range with a 100% sales-to-active listing ratio. The landscape there is changing. Construction on the new bridge to replace the antiquated Massey Tunnel will begin in 2017. That's good news for commuters. Even better news for consumers... A huge Mall complex rivalling Burnaby's Metrotown is slated for an October 2016 opening.
Might be time to start thinking about a trip to Tssawwssen?! We would be happy to point you in the right direction and set up a few showings along the way!
DOM (and we don't mean the Champagne)
Finally… How about "Days on Market?” (DOM) Yes there is still a phrenetic energy out there! Homes are selling quickly across the board. Here’s a 5 year comparison of “DOM's” for select areas:
Unfortunately, in such a fast-paced market, once a property’s DOM surpasses the average illustrated above, it is immediately assumed that there is something wrong with it! This is unfortunate for the Sellers but could bring good fortune to all those buyers waiting in the wings… Yes, it is possible that a property does not sell because indeed, there is something wrong with it - perhaps the inspection did not go so well.
You must consider this too - you may be looking at a listing with an over-the-average “DOM” however, be open-minded! This may be a perfectly saleable property that has experienced the good fortune of a solid offer, or even multiple solid offers and has had the misfortune of resulting in a “collapsed offer.” Believe me, offers can collapse for many reasons other than a poor inspection. Don’t be fooled but those above-average “DOM’s” - dig deeper and stay open-minded. It could be your “leg-up” on the competition.
As one of the top teams in Vancouver and #1 here at Re/Max Crest Realty Westside, we are constantly fielding the kind of questions that really should be reserved for fortune tellers! What’s going to happen in the market? We can only rely on knowledge and experience and with that, we can assure you that in the past 10 months, we have witnessed countless Real Estate stories of hope & success… actually 185 (team sales since January) to be exact and we have countless more buyers just waiting for your listings! Yes!… it’s time to SELL!
Rhonda Sacks is an Associate Realtor with the Zwick Chimes Real Estate Group. Contact: firstname.lastname@example.org, 604-785-4145