Tag Archives: lower mainland

Buyers market is a silly way to put it

What does ‘Buyers market’ mean to you?

Is it a market in which the buyer has lots of choice or gets a reasonable price?

..because they aren’t the same thing.

Now that prices are dropping from their record highs on Vancouver real estate, we’re seeing the term ‘buyers market’ bandied about in the media a lot.  And with a huge number of places for sale and actual transactions falling to a 10 year low there’s lots of choice.

But prices are still near record highs!

Real estate is a slow illiquid market, it takes LOTS of time for trends to move through.  Just take a look at the USA, there are some people thinking they’ve hit bottom in some markets after SIX YEARS of falling prices.  Don’t expect deals within a few months, or even a few years.

Real estate marketers will use the term ‘buyers market’ a lot in the coming years, because they make money off transactions.  If it’s not a good time to sell it must be a good time to buy right?

There is one nice thing happening with the shift in the local market though: the Vancouver Sun is starting to publish a bit more variety when it comes to RE market opinion:

Investors in stocks wouldn’t consider a drop in volume to be a buyer’s market in the absence of price changes. The adage that volume precedes price instructs investors to be patient. There’s no compelling reason for real estate buyers to act differently.

Bravo Vancouver Sun, Bravo.

‘very clear signs’ of market slowdown

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.