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BUYERS' MARKET???? Is this really a news flash?


Blog by Patricia Houlihan - Personal Real Estate Corporation | July 7th, 2012


BUYERS' MARKET???? Is this really a news flash?

Well the media has been all over the fact that according to the Real Estate Board we are now officially in a buyers' market. Interesting (mildly) but mostly to see what impact that pronouncement has on the market activity.  We have been heading into a market that strongly favours buyers since about February but we just recently met the mathematical definition (based on number of months supply of homes available) last month.  Depending on the product (ie. condos and waterfront homes) and the price range (the higher you go the better the potential values) I think we have had some very good options for buyers for many months and nothing changed dramatically last month.  For those buying now, we still have ridiculously low rates, an incredible supply/selection, etc.  Prices are apparently still high based on affordability indices; however Vancouver is a very reasonably priced city compared to others which are ranked as much less livable.


It will be interesting to see how many buyers are smart enough to bite the bullet and get into the market now rather than continue renting in a city where rents are high and options for renting not optimal.  When the market dropped significantly in 2008-2009 in Vancouver a lot of buyers said "its going to go lower-I am going to wait". Unfortunately for many of them, the market was down for a very short time and they missed the boat.....

My belief is that it doesn't make sense to wait for the bottom to buy or the top to sell.  You need somewhere to live and even if you buy near the top, on the next upswing you will probably be able to sell your home for more and in the meantime will have had a place to live.  I think as soon as a renter can afford to buy, it makes sense to buy a principal residence. If one goes back to the 1960s, Vancouver's prices have continued on an upward climb with short downswings in between.  Hopefully the announcement that now the market supply favours buyers more than it has in the past 10 years will help the fence sitters jump off and experience the satisfaction (and likely financial gain) associated with owning their own homes.

If you would like to discuss buying or selling a home or investment property, please let me know.

Patricia
phoulihan@deepcovehomes.ca
(604)376-7653