Sales tactics for a sagging market.

Looking to sell a house or condo in a slowing market, but having trouble getting potential buyers in to look at your place? You might try Value Range Marketing a real estate marketing technique in which agents list a price range instead of a fixed price for a property.

“There are still plenty of skeptics and some outright opponents to Value Range Marketing (VRM), and the marketing technique represents just a tiny share of all U.S. property listings. But Lund said VRM is attracting a lot of attention with the slowing housing market.

He rattled off a list of market areas from which real estate professionals have contacted him in the past month about using VRM, among them: Vancouver, Canada; Golden, Colo.; Flagstaff, Ariz.; Ogden, Utah; Minneapolis, Minn.; and Staten Island, N.Y.”

I’m surprised to hear that this would work at all in a slowing market – I can imagine in a sellers market that giving a price range for a property may get more offers, but in a slowing market? Why would anyone offer anything over the lowest range listed?

“It’s the bigger net theory of fishing. It opens up the marketplace to more people looking at the property,” he said. Also, in a market that is subject to major swings in pricing, VRM can reduce the likelihood for price reductions, he said. “When market conditions are changing the way that they are, if you put a fixed price in it might only be valid for that day.”

I’m still skeptical – if prices are dropping in a market I’m not sure how giving a price range would eliminate price reductions, but if you’re feeling desperate give it a try!

Home sales and prices still dropping across the US

This article on MSNBC looks at the stats for home sales across the USA, with the subtitle “year-over-year median sales price drops by the largest amount on record.”

“Housing, which had set sales records for both new and existing homes for five consecutive years, has been rapidly loosing altitude this year, as consumers were battered by rising mortgage rates, soaring energy prices and a slowing economy.

However, economists with the Realtors said they believed the housing decline could be hitting bottom.

“The worst is behind us as far as a market correction — this is likely the trough for sales,” said David Lereah, the Realtors’ chief economist. “When consumers recognize that home sales are stabilizing, we’ll see the buyers who’ve been on the sidelines get back into the market.”

However, analysts said that the weakness in housing could last for several more months with a real upturn in sales not occurring until next spring.”

10 Vancouver west-side house price reductions

So whats happening on the west side sfh market? Here’s ten random price drops in that market, similar to the condo price drops, these are mostly listings that are over 90 days old, price drops from $50,000 – $250,000. Go get your bargains now and keep those prices from slumping!

1125 W 43RD AV– Original: $2,280,000 | Asking: $2,080,000
Home Theatre handpainted with florescent mural

1092 W 42ND– Original: $1,980,000 | Asking: $1,880,000
Walking distance to Osler and Eric Hamber School

6318 GRANVILLE ST– Original: $1,450,000 | Asking: $1,200,000
Great central location close to the airport, downtown & UBC.

2047 W 14TH AV– Original: $1,180,000 | Asking: $1,080,000
Strata with 3 legal suites.

4599 W 5TH AV– Original: $2,150,000 | Asking: $1,850,000
Here you have a hot tub, mini bar & a sound system. Come see!

7529 OAK ST– Original: $998,000 | Asking: $899,000
The house is livable and in good condition.

1025 W 43RD AV– Original: $1,798,000 | Asking: $1,688,000
“Priced to sell.”

1593 W 64TH AV– Original: $749,900 | Asking: $699,900
close to all amenities.

209 W 64TH AV– Original: $850,000 | Asking: $798,000
“Close to school, bus, shopping, airport!

3760 W 17TH ST– Original: $839,000 | Asking: $775,000
Small Cute Bungalow in need of your decorating ideas.

The great ‘buy vs. rent’ debate.

There’s an article today on about the affordability gap between buying and renting in Canada.

“A report on real estate trends indicates that steadily rising home prices and the recent upward drift in mortgage rates is tilting the economics of housing back in favour of renting over home ownership.”

The report released by the Scotiabank Group links the price difference between buying and renting to the slowing housing market across Canada.

“Among major urban areas, the buy-over-rent premium in 2005 ranged from just $31 per month in Winnipeg to $1,220 in Vancouver. Nevertheless, in most centres, the affordability gap is widening.”

Relative price trends in recent years have consistently favoured renters over homeowners, the report said. Between 2000 and 2005, renters’ shelter costs increased at an average annual rate of 1.3 per cent. Homeowners’ costs, on the other hand, rose an average 2.7 per cent yearly. Rising home prices have been a major inflationary factor, but homeowners have also faced relatively larger increases in insurance premiums and maintenance costs.”