Vancouver real estate is currently a sellers’ market. Citing sales figures and expert opinion, Business in Vancouver reporter Glen Korstrom explains why the ball is in the court of sellers.
Strong sales helped push the benchmark Metro Vancouver home price to $628,200 in June, the Real Estate Board of Greater Vancouver (REBGV) announced July 3. That’s $4,200 more than in May and a rise of 4.4% compared with the $601,900 benchmark price in June 2013.A key metric to determine a market’s strength is the sales-to-active-listing ratio and Vancouver’s ratio has risen to 21.3%, which is the highest the measure has been since June 2011.Conventional real estate wisdom is that a market is considered to be a buyers’ market when the sales-to-active-listings ratio is below 13%. A balanced market exists when the ratio is between 13% and about 21%, [REBGV president Ray Harris] explained. It is then considered a sellers’ market when the ratio is above 21% for at least a few months, he added.
The favorable conditions for sellers may discourage or intimidate buyers looking to acquire a property in this prime real estate region. What buyers should keep in mind, however, is that seasoned real estate agents can help them get the home of their choice, even in a sellers’ market; using their networks and resources that include MLS listings in Vancouver.strong sales nudge vancouver home prices higherRefining your choicesThrough the MLS listings, buyers can find available homes that suit their preferences. The database can be filtered by location, price, number of rooms, amenities, size, and other categories. An agent can help in customising the search, and buyers can receive updated reports on properties that fit their criteria.Sticking to your budgetAs property choices may be filtered according to price, buyers can narrow down their options to those which meet their budgets. They can then assess the features of each home and decide if they find the price to be fair enough, factoring in estimated overhead and maintenance costs. It is best for a buyer to always have mortgage pre-approval to be able to set a proper budget, before looking for properties to buy.Throughout the entire process, the help and guidance of a local agent who is versed in using MLS in Vancouver, B.C., such as Jamie Hooper, would be invaluable. With an experienced realtor, buyers can get comprehensive information and professional advice on how to have a positive home buying experience in a sellers’ market.(Source: Strong sales nudge Vancouver home prices higher, Business in Vancouver, July 3, 2014)