It’s
a SPOOKY real estate market out there!
Ok maybe “spooky” is a stretch but you get the idea…..
This year has been very odd with Spring home
sales volume not meeting our expectations: many amazing homes failed to
sell. Over the usually slow summer
period we saw unusually high sales volume.
Then in the normally busy September we saw a slight slowdown. Now in October
we are faced with a lot of buyers but not enough suitable housing to meet the
demand.
After several years of not
having enough buyers in the Cove to push the prices up in line with Vancouver,
now we have a lot of buyers (in part because the Vancouver prices are
continuing to climb) but not enough homes for them to buy! Those sellers who have taken advantage of the
current market are seeing very good activity and prices for their homes….we
need more of these sellers!
Why are
there so many buyers looking in the Cove area now? The Greater Vancouver area is also seeing high
levels of buyers looking. This may be because the majority of analysts seem to
be predicting some upward movement in interest rates as early as Spring of
2015. Many buyers need to buy ahead of rate increases because every percentage
point counts. If interest rates do
increase, this can lead to lower sale prices because buyers cannot afford to
pay both higher rates and higher prices.
While we are not anticipating 1980’s size rate increases, every little
bit can impact on affordability and prices.
With regard to the number of Cove
buyers in particular, Deep Cove prices are bringing people across the bridge.
We have always marketed the homes we sell to the East Van and Kits buyers and
many do make the move for value and the smart ones for lifestyle. As the gap between Vancouver and the Cove continues
to widen, we will likely see more of those buyers moving here.
What
does this all mean?
Sellers: If you
are thinking of listing, now is a great time as the supply/ demand equation has
improved for you.
Buyers: If you can
find something to buy, and lock into a long term low rate, you might want to move
quickly to avoid paying the bank more. Even if rates don’t go up significantly,
personally I don’t like to pay the bank anymore than I have to; an extra $50
per month in interest payments could buy
me a nice lunch at the Bistro!
If you would like to discuss the current market or your particular real estate needs, please call or email me or drop by our office in the Cove at #101-2221 Panorama Drive, North Vancouver.