What's REALLY going on in the market?

You hear about it here, there and everywhere. The real estate market is down, it’s crashed by 20%, now it’s back up, wait this is in multiple offers? Now it’s down again? To be honest it’s just like Brexit, you can easily get swept away with it all.
This is where we enter the room. Cool as a cucumber (hopefully) to save the day!

We’re taking away all the fluff, fake news and literally delivering the facts based upon the numbers in an easily understandable way. We’ll make some predictions based upon our experiences and what the numbers are showing. But for the most part, it’s based upon what’s happened in the market over the previous months.

It’s been no surprise the market has made a shift since what it was a couple years ago. We’re not here to debate that, we are here to determine what’s happening now.

Since(at least) November 2018, December 2018 and January 2019, we’ve seen a sky rocket in homes come ON the market. The figures kept showing an increase in homes on the market, with a continuous decrease in sales figures. Hitting record lows in fact. This caused a separation in the market like so:

SELLERS - TRIED HOLDING OUT, HOPING PRICING WAS GOING TO COME BACK UP

BUYERS - HELD OUT, HOPING PRICES WERE COMING DOWN MORE

So over the last few months, this battle ensued with the above mentalities. However sales were still happening. Taking out those desperate to sell, normal sales were still happening. This is purely down to those parties acknowledging the state of the market.


Take Kitsilano, a popular First Time Home Buyers location. You had multiple homes on the market for 200+ days with price reductions happening and just nothing being sold. Yet you had some homes selling in a week or two. This is a great example of the two mindsets. Those that sold were aware of the current market, therefore priced appropriately and were open to negotiation. Whereas a lot of other sellers did not want to admit ‘defeat’ and continued to try and hold out. Buyers on the other side also realized these lower prices and were open to realistic negotiations, without trying to take 25% off the top of everything!



The latest February figures show the amount of listings coming to market decreased substantially, while the amount of sales that took place actually increased vs the previous few months. Don’t get us wrong, we’re not saying the market is hot again by any stretch of the means, but this change of events shows the gap between buyers and sellers is decreasing.We would envision those that are not in need of selling their homes will avoid placing them on the market, with a lot of those people opting out of testing the market, something that was not the case 6 months ago. Buyers on the other hand have been waiting patiently to see what is going to happen with pricing, and it appears they are now happy with what’s on offer and willing to make their purchases. This trend will start the balance of the Vancouver Real Estate market moving forward again. In what we believe to be pricing that will remain at a similar level.




Spring is typically big on activity for both buyers and sellers and with the beautiful weather we have been having, it will be interesting to see what the Spring period brings us! 

If you have any further questions on the Vancouver market, feel free to give us a call or e-mail. If you want the actual statistics from our monthly updates, feel free to subscribe to our monthly newsletter (scroll slightly down). Don’t worry, it will literally be 1 e-mail a month, we hate spam with a passion!

See everybody next week!

Jay Mcinnes
T: 604.771.4606
jay@mcinnesmarketing.com

Ben Robinson
T: 604.353.8523
ben@mcinnesmarketing.com