This year we are thankful for all of our viewers and readers! As corny as it sounds, we are genuinely extremely grateful for your continued support, both those who have in turn trusted us as your representation, to those who watch to keep up to date.
On top of this, we are grateful for all of the questions we get from you all. So in order to please as many as possible, we will be answering multiple questions from you today, in hopes to answer the many questions you have. Any in which we do not cover today, we will respond to privately , we promise!
So without further delay, on to our first question:
Q: Last week, you said we are in a balanced market, what does that ACTUALLY mean? - From Stacey W, Yaletown.
A: Thanks for the question Stacey! So a balanced market means exactly that, the market is not in favour of buyers OR sellers. Pricing is not being pressurised up or down, more so that it remains at similar levels and providing property is accurately priced, it will sell. Typically at a faster pace than in a buyers market, but slower than a sellers market.
Q: Why is it better to buy in a balanced market than another type of market? - Gregg B, Yaletown
A: It’s not necessarily better, but a lot of people want to ‘time the market’. They want to wait for prices to be at their lowest. As we have gone from a buyers market to a balanced market, this shows there is not the continued pressure on pricing to move downwards, meaning purchasing now means you have purchased when prices have reached their lowest.
Q: You say a ‘balanced market’ yet Ii’ve lost on multiple offers 4 times now, how is this happening in a balanced market? - Sarah A, West End
A: Ouch! That’s painful Sarah. We’ve definitely seen this become much more normal. Now prices have reduced to their new lows and buyers are happy to buy, it means you’re facing more competition. Let’s assume you want a 2 bedroom in Yaletown with a view. If you are looking at 10 properties, of which 3 are priced effectively, you are likely competing against other buyers who are also looking at those same 3 units. On top of that they have ALSO watched prices come down and are now willing to jump on it. Our best advice here is to look at market value offering. If you are trying to low ball in hopes of getting a deal, that can harm you if you are in a multiple offer situation.
Q: Why are you both not in the chicken and pumpkin suit from last year? - Tyrone A, Olympic Village.
A: Something we are trying to forget Tyrone, so thanks for bringing that up again haha. Also it was a Turkey!! No, unfortunately we are not dressed up, mainly due to downward pressure from our better halves ….
Q: Jay, how does it feel competing with a British Accent every day? Anonymous, Yaletown
A: Nice try Ben. Nope.
Q: Will prices reduce further if a recession hits? Mohammad A, West End
A: A tough questions. Usually we do see that happen when a recession hits. Most of the the US heading into a recession and it’s natural domino effect causing prices to decrease in Canada. I think a lot of people think of 2008 as a regular recession, however that was a recession compounded with multiple collapses. Not that a recession should be taken lightly, however if you are banking on that happening, you are banking on the recession taking place, whether that’s in 6 months or 6 years. Nobody can tell.
Q: Why does every REALTOR talk about pre-approval?! Gayle S, Burnaby Heights
A: Because it is literally Step 1. It’s not about putting your expected purchase price into a mortgage calculator and then being ready to go. A lot of people make this mistake and then purchase, only for it to fall apart as they don’t realise their income, work history, existing debt, property purchase type and more, make up what amount you can be approved for. That’s before we get to the stress test difficulties too. It’s very common for people to only be approved for amounts hundreds of thousands below what they thought they could get, or none at all.
Thank you everyone for watching/listening this last year, we appreciate you! That’s us for this week and we hope you are all stuffing yourselves with turkey throughout the weekend!
Happy Thanksgiving everyone!!
Until next week,