Thoughts on Vancouver's Spring Real Estate Market
The spring market is upon us! April and May are generally considered to be the most active sales months of the year, and it looks like this year is shaping up to be just that.
In concert to an increase in sales, we can anticipate more listings hitting the system, hence providing more variety for buyers. This encouraging news for buyers is somewhat tempered by the recent 30 basis point increase in mortgage rates. Buyers now have 90-120 days to exercise their lower rate holds, which will likely motivate more buyers to enter the market and consume any excess supply. Long story short, we can reasonably expect most categories to exhibit “seller’s market” characteristics. With that said, ironically, both the single family homes and condos seems to be demonstrating “spotty” qualities.
The steam in the detached (house) category appears to be abating somewhat. That is not to say that house sales are levelling off, however, the 20% price gains realized over the past three months is levelling off; well priced listings are still garnering robust attention while optimistically priced homes are taking a little longer to sell.
The condo category, on the other hand, is realizing a more pronounced spottiness. Location, quality of the home including staging/renovations, and overall appeal of the building, are still paramount, but price is still the most important trigger to a sale. Over priced condo listings are taking longer to sell, and price adjustments are not uncommon. Well priced properties are selling quickly, and in rare instances, are seeing more than one offer.
One could argue that we are in a very healthy market subject to some small changes. The Bank of Canada is not set to increase rates until July, which leads me to believe that the spring market will carry on relatively unchanged for the next couple months.
If you or a friend is thinking about buying or selling, I would be delighted to assist. The best outcome is determined not by luck, but by well executed planning. I would be honoured to discuss. Please feel free to contact me anytime at 604.612.6120!
Talk soon,