A huge number of factors are currently buffeting Vancouver real estate. Indirectly, strong reported inflation (never mind the unreported inflation); a downturn in the equity markets; the crypto crash; talk of recession; the Ukrainian war; currency fluctuations, etc. Directly, large and continuing interest rate increases; stress tests; foreign buyer restrictions and taxes; vacancy taxes; imminent changes to the offer process; bank appraisal challenges as values adjust, and the list keeps going.
Much of what is happening is and will continue to make selling and buying real estate more challenging in the coming months. And once you interrelate the various factors and begin to see feedback loops happening, well, it’s difficult to predict anything other than continuing volatility. It's enough to make any person just pull back and wait and see, which is another factor currently in play that then loops in with the rest.
Why do people choose to sell or buy, even with challenging conditions such as today’s? Here’s a sampling of my clients’ motivations over the past while:
Need more space, need less space, having kids, kids moving out, new job in a different area, getting married, getting divorced, move from condo to house, move from house to condo, move to smaller condo (second stage downsize), retiring, children attending nearby college, suburbs to downtown, sell house and have condo in city and home in small town, funds release for a business, leaving BC, moving to BC... I could go on. But the point here is that these reasons would exist whether conditions are as they are now or what they were like, say, a year ago.
Some of the following may be familiar to some long-term readers but it does bear repeating in these times.
Some sellers are concerned that they'll receive a lower sales price in a slow or downward trending market than they would have a few months ago. True, however as I do remind my clients if they're selling and buying again in the same general market (e.g., Greater Vancouver), odds are the value of the home they intend to buy now may be lower-priced than a few months ago (or even weeks ago) as well. Thus, the price differential may be no different than it was previously, and in some cases can be more favourable.
If you're planning to be in Vancouver for several years, work on developing a long-term, multi-year perspective rather than succumbing to the anxieties that a short-term view can bring. The Greater Vancouver area remains one of the world's most desirable places to live. Tens of thousands of people move here every year from all over Canada and the world. Odds are good that this will not change dramatically. We may see some ups and downs in home values, but, longer term, if you plan to live here for the foreseeable future, owning a home is the way to go.
Making the decision to buy for the first time; sell your current home and then buy again; or move out of the Greater Vancouver market for good can be fraught with stress. You can endlessly analyze, second-guess and debate things. As mentioned above, it's best to focus on your own situation and needs and think long-term. After all, you’ll need to live somewhere for the rest of your life!
A successful sale at top dollar for that moment in time is dependent on many factors; two critical ones being price appropriateness and the listing Realtor. Price the property too high (e.g., for the market of a few months ago), and you'll likely end up disappointed. If you price too high at this time your home may be on the market for many weeks or even months, regardless of your Realtor’s efforts. Additionally, in a slowing market the value for your particular home type may decline faster than you are likely to want to lower your price. The result? You'll be chasing the market down. Price it appropriately for tomorrow/next week and enlist a long-term, professional Realtor with a history of successful results and you'll likely have a quick and happy outcome. My 20 year historic average time for a successful sale is measured in days, 14 to be exact, not months! I'll always strive for this outcome for all my clients.
Contact me anytime for help in strategizing your next move.