Many people are asking these days how is the market? But what they really want to know is, are we going to see the big correction? Are prices going to drop?
At the moment, the basic economic principals of supply and demand have the market continuing to be robust. More people are looking to buy than the current supply can handle so we are continuing to see prices rise. The recent election could change these factors however, we will have to wait and see how that all finalizes before we will see how it may impact real estate.
When we talk about “The Market,” we really need to get specific. Detached homes on the Westside in Dunbar for example are moving along at a surprisingly brisk pace and selling better than higher end homes in Burnaby for a million dollars less. Condo’s downtown or well anywhere in Metro Vancouver are on fire! We continue to see multiple offers in that segment of the market. Areas and types of homes are wide ranging so you really need to get specific when you are asking; “How is the market?”
The media and speculation around real estate has been a hot topic for years. But as I said above it’s very important to look at the fundamentals of the market. For this reason, be careful of what you hear in the media. Often, they will take information on a broad level and apply it to “the market.” Here is an example, while the demand for Condo’s and Townhomes continues to drive the Metro Vancouver Rea Estate Market. Sales in April for Condos and Townhomes were down 25.7% when compared to last year. That doesn’t sound good, does it? We need more context! Last year was a record year so it not necessarily the best year to compare any other average year against. When you look at the bigger picture our sales are actually 4.8% higher than the ten-year average or what you could say, is more typical. What does this all mean? While we are not keeping pace with the record level of last year it is still an active market and stronger than your typical market over the last ten year. That is not nearly as dramatic as a 27% drop that people want to be talking about or what the media would like to portray.
If you would like to avoid hyperbole and get more context and information on your situation, now is not at all a bad time to be selling and I would be happy to sit down and talk about your specific needs or questions. We also have been using some new strategies for buyers in a challenging market that are having success as well so we would be happy to share what that look like.