Buying Vancouver Real Estate

(December 18, 2013, posted in Buying)

I often get asked the question, “when is the best time to buy real estate?” In other words, will prices continue to drop or should I buy right now…?

While none of us have a crystal ball, there is a simple and absurdly accurate way to assess the market that can tell us if future price drops are coming quickly or not. Simply by dividing the total number of MLS inventory by the total number of monthly sales will give you a number that reveals which direction the pressure is headed… when this number approaches 7, pressure on housing prices will be downward but remember that this changes from month to month and must be compared to the previous month as well as the same month of the previous year to get an accurate understanding of where prices are headed.
Also, it is important to note that every market area within Vancouver will have different responses to the overall market trend. So while Great Vancouver as a whole may sitting at approximately 6.5 in today’s market, North Vancouver is comfortably hovering around 3 and certain niche markets within North Vancouver are even lower and that makes a big difference when it comes time to make an offer on the house you want to buy.

Where is it located?
What is the supply and demand ratio?
What is inventory like? Even though popular speculation at the moment is that of a “buyer’s market”, inventory is low in some areas and popular pockets of the market remain relatively unaffected by market trends simply because the demand to live there continues to run high.

These are definitely the kinds of conversations you want to be having with your Realtor when you are looking to buy or sell as popular news reports will generally show a very broad picture that may not be accurate to specific areas of interest where you may wish to buy or sell.

Preparation is key to any good negotiation in life..the more you know, the easier your real estate transactions can be. It is always important to look at the big picture but when it comes down to buying – whether it is your dream home or an investment property – local market knowledge and a greater understanding of the current pressures affecting that area are key.

One of the things I offer all my clients is a “Market Snapshot” of the area in which they are selling and / or buying. This simple diagnostic tool is something I custom create for you that will give you a much more accurate picture of the current market climate in which you are working. It’s free, highly informative and completely customized for you. When you are ready for yours, I’d be happy to help.