Should we have some sort of index tracking Realtors making public statements that it’s time to sell?
The market is sluggish, sales are low, inventory is growing.
..And the number of agents saying it’s time to SELL NOW is growing as well.
Agent Keith Roy was in the news recently with his blog post about the sale of his personal property and now Sam Wyatt is saying something similar:
Vancouver’s real estate market is getting and is going to get hit from both ends. So, now that you are thoroughly depressed, here is the bright light: IF YOU SELL NOW, YOU WILL STILL BE SELLING NEAR THE TOP OF THE MARKET. If you plan to sell, you will need to price BELOW the most recent comparable sales prices. If you don’t do this, your listing will stagnate. I am pleased that this methodology has produced 4 sales in the last 30 days for my clients in a market were most homes are not selling. In one case we had a multiple offer with a significant over asking result and in another we negotiated a full asking price sale.
I guess the important part is in all caps.
So can anyone find me a Realtor saying that now is a good time to buy in Vancouver?
If you’re wondering why we haven’t heard as much about wealthy chinese buyers lately as prices drift down in Vancouver, maybe it’s because they’re moving to the USA.
“California has always been popular with Asian buyers,” he told beyondbrics. “But whereas before it was mainly buyers from Taiwan, Hong Kong and Japan, now we are seeing more mainland buyers visiting.”
Reasons for purchases vary, say those who have dealt with overseas Chinese buyers. Some are buying because they want to emigrate or they have children who will go to school in the US. More and more Chinese millionaires are looking to settle in the US or at least secure residency rights.
And why would they be buying in the US as opposed to Canada?
Others buy because the numbers add up: the renminbi is relatively strong against the US dollar and property prices are cheap compared to Australia or Canada.
But it’s not supposed to work like that! Wealthy people aren’t supposed to look for good deals..
How’s this for an opener:
While the country’s new mortgage rules are meant to cool the market, eventually making housing more affordable, they’ve put home ownership out of reach for many prospective buyers.
Uh-huh. And what if the problem was that we put home ownership in reach of too many prospective buyers?
Those who don’t have a down payment of 20 per cent or more will be limited to a maximum amortization period of 25 years. Since 40 per cent of new mortgages last year were for 26 to 30 years, according to a survey from the Canadian Association of Accredited Mortgage Professionals, real-estate neophytes might feel the change most dramatically.
WHoa! Did they just say 40 percent of new mortgages were over 25 year amorts?
Another new rule announced by Mr. Flaherty sets the maximum gross debt-service ratio – the percentage of household income being used to pay for housing – at 39 per cent so buyers will be less likely to take on mortgages that are too big and could leave them floundering if rates increase.
That’s the one that Andrea Benton, a 37-year-old entrepreneur in North Vancouver, B.C., said hits her family of four hardest.
“It means my total family income would have to be an exorbitant amount to afford an $800,000 house,” she said.
You mean you’re expected to have a high income to afford an $800,000 house?!?
Read all the comedy in the full article here.
All over BC the decline in real estate is in full swing. When you’ve got more sellers than buyers it takes a little extra to stand out.
And when that extra is FREE BEER! it does stand out.
Allen has had his three bedroom condo on the market for just over a month and says only two prospective buyers have stopped in.
“I have two houses, one in Kelowna and one in Kamloops and I just can’t afford to keep both going.”
The condo located on Springview place in Kamloops, was being rented, but after the tenants moved out and the house went on the market, Allen knew he had to be creative or he could be stuck paying two mortgages.
“I was sitting around thinking, this house is a real pain, it’s not getting nearly as many views as I would like. How am I going to attract people to this house? Well I was drinking a beer at the time and I thought why not just give away beer for a year.”
Allen hopes the free beer initiative will be the final push to get people thinking about buying.
“This place is geared towards students, and that is who I am marketing with this campaign of free beer for a year.”
Here’s the full article.
Is the Vancouver real estate market cooked?
Sales are plummeting and the lower mainland is choking on inventory.
Tsur Somerville decided it’s time to sound the warning bell in the Vancouver Sun:
“We’re getting this consistently now,” said Tsur Somerville, director, centre for urban economics and real estate, Sauder School of Business at the University of B.C., after a monthly report by the Real Estate Board of Greater Vancouver showed a continued rise in listings as sales drop.
“We’re in a market that’s much slower than what we’re used to and I think that will transfer into much more sluggish prices, at best.”
According to the board’s report, released Monday, May sales were the lowest total for the month since 2001 and 21.1-per-cent lower than the 10-year average for May sales. Local home sales in April were also the lowest total for that month since 2001.
…yeah, that’s right. Lowest since 2001. And the remarkable thing is that the word the real estate board has chosen to describe this market is ‘balanced’.
I guess it is very important to keep your balance while you’re sliding down hill.