It's that time again - the monthly snapstat reports are just around the corner for the month of November. Today we received the Market Speedo's that give us an overview of market conditions and type for every area in Greater Vancouver. It comes as no surprise that yes- we are still very much a Sellers Market.
But what does that mean? Ok, so inventory is low and demand is high. But what does that really mean for home buyers?
When market conditions are such that many people and families are looking to purchase a home (demand) but there are a very limited number of properties for sale (inventory), we call this a Sellers Market. These conditions create an opportunity for those who are selling their homes to increase prices, thus causing market inflation. Home sellers know the market is hot and there's big competition amongst buyers to secure a property, which gives the sellers grounds to be a bit more demanding- both in price and in conditions or clauses.
Properties tend to move very quickly under these market conditions, with home sellers often receiving multiple offers on a property shortly after listing. This gives the seller negotiating power when it comes to conditions and clauses on a contract, as well as price. Competition amongst home buyers is fierce when its a sellers market, and if one buyer isn't putting in an offer at full asking price, a home seller may refuse that buyers offer, secure in the knowledge that another potential buyer will offer full ask.
Inventory in British Columbia is at a 20 year low in 2017. This has created incredibly competitive market conditions for home buyers- we clocked in at a 49% selling rate in the GVR region for October, 2017. There were 286 more sales this year than in October 2016, with 150 less homes active on the market. Prices were recorded to be 16% high than in fall 2016.
So, what is a home buyer to do?
First and foremost, expect heavy competition. Know that for every house you tour and love, there will likely be multiple other buyers who love it just as much. Be prepared to set yourself apart from the competition. Be patient when it comes to looking at houses, but not when it comes to making an offer. If you see a home you love and fits your needs - dont necessarily wait to make an offer. "Pull the trigger, if you find the right house" says Lynn Johnson, a Broker with Bamboo Realty in N.C. Be ready to make a competitive offer, and to negotiate conditions and closing clauses.
Ultimately, we in BC are somewhat used to these extreme market conditions. That's why having an experienced negotiator on your side is so important. Call me today if you have questions about market conditions, and I can help you make sense of one of the biggest investments of your life.