Today I want to look at a couple of our national real estate markets and what’s happening in our Vancouver market.
I was at a managing broker conference in Richmond yesterday, which was hosted by BCREA (British Columbia Real Estate Association). Attending the conference were members of the CREA (Canadian Real Estate Association), the Real Estate Council of BC, FINTRAC, and the Superintendent of Real Estate. They gave a lot of great ideas on how to better the consumer’s experience when dealing with Realtors and real estate. They also had some enlightening statistics that I’ll share with you today.
One of the biggest takeaways for me was from one of the presenters from CREA. He talked about the consumer price index (CPI) and the other goods the government uses to analyze the current condition of the economy. Between the years 2000 and 2017, the CPI went up 36%. During that same period, the housing price index (HPI) was up 207%. This shows how out of whack our real estate prices are compared to the rest of our society. This alarming statistic brought on conversations about homelessness, first-time buyers, renters, move-up buyers, move-down buyers, etc.
In our local market, though, our August numbers showed the fifth consecutive month of decreasing demand. Ever since March 2018 there have been fewer buyers coming into the market. The Vancouver Board also reported that home sales dipped 25% below the 10-year average during August. Prices have also started to fall over the last couple of months in Vancouver.
Warren Buffett once said that it is more important to have time in the market than to time the market. So if you’re on the fence right now about selling or buying, give me a call. We can go through what’s important on your end to get you in the market.
While you may earn less now than you would have by selling in April 2018, you will still earn more than you would have in August 2017 since prices have gone up 10% year over year. If you’re moving out of the country, you’ll probably do very well. If you’re moving within Greater Vancouver, you may get a little less from the sale, but your new home purchase will also be at a lower price point than what we saw in April.
Of course, properties are still selling. The difference between a property that’s stagnant on the market and one that sells right away is the price.
If you have any questions about this, or if you’re interested in learning more about buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.