Further on from our blog last week on the market just turning, whether you believe it or not, we are potentially finding ourselves at the bottom of the market. So what happens moving forward from here?
Most people believe the real estate market operates on a zig-zig flow. So if you were to look at a chart, you would only see the lines going either up or down. Meaning once we hit the bottom of the market, prices would start to rise again and be on the up. However nice this would be, it is not the case.
In between these risings and declining periods, we have a more steady horizontal line that accounts for a ‘buoyant market’ in between the ups and the downs. Also, downs are not necessarily always followed by an upwards period. Various outside factors can take place and cause another downward movement to take place, the same can be said for an upwards streak.
So where does that leave us now in Vancouver Real Estate? Well as mentioned above, if we have hit ‘the bottom’ we are in the buoyant market phase where pricing remains consistent and buyer demand starts to increase. Now take this lightly, as it increases due to the expectation of the market not coming down further, not because demand is so high that prices will skyrocket again.
This means we are entering a period where pricing will remain consistent and market value is less likely to change for the foreseeable future. How long do we remain here? The short answer is nobody knows. Will the situation in Hong Kong change things? Will the Government election in Canada change things? Does the recession hit in the US? All of these things could make a significant impact or a minimal one, we just have to wait and see.
What’s important though for both buyers and sellers, is to realise new benchmarks have been put in place and adjusting your expectations to them is now key as they will remain at this level for a while, assuming we are at the bottom of course.
If your home has been listed for a while and still not sold, then it is likely you are asking too much. Just because of the buoyant market and stabilization, it does not mean your overpriced listing will now sell if you hold on.
Buyers, if your desired property is listed at $1,000,000 and market value shows it is worth $1,000,000; But you are waiting for it to come down further, you are likely NOT going to be in luck as the benchmark has been set and the market is not falling anymore.
Remember, the market is what it is and you can’t change that. It’s unrealistic expectations, pride and ego that most of the time stop you from being successful, whether that be buying, selling or both. Approach the market from real statistics and not from a personal perspective. Things like price per square foot, days on-market and recent solds have no ego, they are just the good old fashioned indicators you should be going by! Otherwise, if your plan is on the market stabilizing to be successful, you have a rough journey ahead still!
Thanks for tuning in to this weeks blog as always!