Want To Buy Or Sell Your Home? Don’t Listen to the News

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Are you scared to scroll through social media, open up your local newspaper, or listen to the radio because it causes nothing but stress, anxiety, or loss of sleep? You’re not alone. Nearly half of Canadians feel the same, according to a recent report.

Of course, it’s important to stay informed but you should also not always take what’s reported at face value. For example, yes, the real estate market is going down, and, yes, Vancouver is not a very affordable city, but when you delve into the actual numbers, overall trends, and look at pockets of the market, it’s not all doom and gloom. For those who know where to look and have a smart realtor on their side, deals are out there to be had— both for buyers and sellers.

There are many complex reasons that market is down, but one of the major ones is the government’s “stress test” which has cooled the market as intended, reducing purchasers buying power by approximately 20%. Unfortunately, this lower buying power causes significantly more struggle for those first-time buyers. This also influences all purchasers as they must qualify for a higher interest rate than the current one posted in the 3.2 percent to 3.4  percent range for which those that are selling have to adjust for. But for some buyers, they can use the “stress test” to negotiate better prices.

It is clear by the open houses which seem to be busy from most accounts in the industry and MLS searches seem to be steady. This shows that there are still a lot of buyers looking and a lot of supply for them to look at. This is good news for the economy.  Overall, if a purchaser has managed to secure financing, this is a pretty good time for them. However, this is not usually reported in the news. (It doesn’t make for much of a front-page story.)

While, listings are coming on the market daily and demand is lower than the average for the past decade, it doesn’t mean the sky is falling.  It means there is time for negotiations and to take your time with the entire process. This is just a dip in the market – some of which is government-made, meaning it’s artificial and won’t last forever. When the market will make an upward correction is anybody’s guess.

With more supply than usual, the days of tossing a sign up and collecting a ridiculous amount of multiple offers without even having to lift a finger are over – for now. Now is the time of analysis and pricing in the actual range to sell. This downward pressure will probably continue for some time as traditionally the market slows down for transactions as well which we are already seeing in the typically busier Spring months.

With 20 years of experience in Vancouver Real Estate, Chris has a vast experience in buying and selling homes, specializing in the Mount Pleasant, False Creek, Sunset, and South Vancouver areas. Give him a call at 604-805-1804.