If you’ve recently taken a look at the bustling Vancouver real estate scene and thought, “Is now the time?”, you’re not alone.
Vancouver’s streets are filled with chatter about skyrocketing housing prices and that question: Is now the best time to sell? Let’s face it: selling a home is a big move.
And with so many factors swirling around—from market trends to mortgage rates—it can feel a bit overwhelming.
But don’t worry. We’ve dug deep into the market’s latest, and we’re here to break it down for you. Ready to see if the scales tip in favour of selling?
Vancouver Market Report Summary
Now is a good time as any to sell your house in Vancouver. Here’s why, based on the latest stats and insights from Vancouver’s real estate market:
- The Housing Market’s Pulse: Housing prices in Vancouver have been on a subtle upward trajectory. As of July 2023, the benchmark price of a single-family home rose by 0.70% year-over-year to an impressive $2,014,900. Similarly, condos in the same period saw a benchmark price hike of 2.6%, reaching $771,600.
- Buyer’s Mood: There’s some fresh energy in the market. With sales activities witnessing a year-over-year percentage surge, potential buyers seem to be more active than ever. This buzz translates to a better chance of your home catching an eye or two!
- SNLR Metric: The sales-to-new-listings ratio (SNLR) is hanging around 53%. What does that mean for you? It’s a balanced market! Not too hot, not too cold—just right for you to step in and make a sale.
The Current State of Vancouver’s Housing Market
You know, the pandemic really did shake things up everywhere, and that includes the Canadian housing scene. Vancouver, a city renowned for its real estate, wasn’t immune to these shifts.
The demand for homes surged during the pandemic. One reason behind this is people looking for spaces for their work-from-home setups or desiring a change of environment. This heightened demand, combined with low interest rates, resulted in an unexpected rise in housing prices.
Influence of the Bank of Canada’s Interest Rates The Power of Rates
The Bank of Canada plays a role in the country’s real estate market through its policy rates. During the pandemic, these rates were kept at a minimum, making borrowing cheaper and more attractive.
This not only boosted the purchasing power of potential buyers but also increased the number of active buyers in the market. As these rates are now seeing adjustments, it’s essential to understand their influence on the average home price.
Any hike in the current rates could mean increased mortgage interest rates. That’s something both buyers and sellers should keep an eye on.
High Inflation and Possible Recession
Here’s the thing with high inflation in real estate: it’s a bit of a mixed bag. For sellers like you, it’s like a price boost for their homes. But for buyers? Not so much, especially if they have to grapple with steeper mortgage rates.
The looming possibility of a recession further complicates the picture. A recession can lead to reduced consumer confidence. This, in turn, makes potential homebuyers wary of making significant investments.
However, even in such economic climates, opportunities arise. For sellers, it’s about understanding the current market conditions and being flexible with pricing.
8 Factors to Consider Before Selling
1. Pros and Cons of Selling Amidst Rising Interest Rates
With the onset of rising interest rates, homeowners must tread with caution. On one hand, higher interest rates might deter some buyers, leading to longer selling periods.
For those who have a locked-in mortgage rate, selling now might allow you to capitalize on the current home values before potential market slowdowns influenced by rate hikes.
However, it’s important to note that the rising interest rates might increase the cost of a new mortgage for sellers looking to purchase another property post-sale.
2. Importance of Market Inventory Levels and How They Can Influence a Decision
Market inventory levels play a role in determining whether it’s a buyer’s or seller’s market. Currently, even with falling home prices, housing inventory levels remain low, suggesting that demand is still outpacing supply.
For sellers, this could be a sign that their property might be in higher demand and could fetch a good price. However, a low inventory also means limited choices for those looking to reinvest in a new property after selling.
3. Potential Costs Associated with Selling
Selling a home isn’t just about the profit from the sale price; there are costs to consider. Breaking a mortgage, especially if it’s before the term ends, can lead to significant penalties.
Additionally, transaction fees, agent commissions, and other associated costs can eat into the profits. It’s essential for homeowners to factor in these costs when determining the net gains from a sale.
4. Preparation for Home Showings
A positive first impression is important. How a home presents itself can greatly sway a potential buyer’s perception and eventual decision.
A clutter-free space allows potential buyers to envision their life in the home, making spaces seem larger and more inviting.
To make the home more appealing and sell faster, stage it well, keep it clean, and remove odours. This could lead to higher offers.
5. Impact of Property Taxes
Different areas or zones might have distinct property tax rates. This is influenced by local governance, the quality of public services, and local amenities.
It’s important for buyers to know about property taxes, especially if they’re planning for the future. To make selling easier, it helps to be clear about these costs and compare them to other regions.
6. Future Growth Potential of the Area
Upcoming projects, proximity to tech hubs, or the presence of renowned schools can play a role in boosting an area’s appeal.
Such developments often result in increased demand, driving up property values. Sellers near these growing areas may have more buyers interested in their properties. This could lead to faster sales and higher prices.
7. The Flexibility of the Sale Timeline
The ability to offer a swift move-out can appeal to buyers in urgent relocation scenarios, making the property more desirable.
On the other hand, a longer closing period might attract buyers who need more time, serving as a unique selling point in a competitive market.
8. Environmental Factors
Clean air, low noise, and no hazards are major selling points, especially for health-conscious buyers or families.
It’s important to be open about any environmental worries, like being near floods or factories. Such factors can influence both the property’s value and the time it spends on the market.
Is Now the Time to Sell? It Depends on Your Objective
With the way things are in Vancouver’s housing market, selling now is a good idea if you’re looking to capitalize on the current demand, especially with the low housing inventory.
But, if you’re planning to buy another property immediately after selling, be cautious – those rising interest rates could shake things up.
In essence, if you’re not in a rush to reinvest, selling now could be a smart move. But if you’re playing the sell-and-buy game, you might want to sit down and run those numbers closely.
Feeling a bit uncertain? No worries. We’ve all been there. If you’re looking for a friendly chat and some genuine advice, the Dave Masson Real Estate Group is here for you. We offer a free home evaluation to help you understand the current value of your property in today’s market.
We’re not just about transactions; we’re about building trust and helping our community make the best decisions. Fancy a coffee and a chat about your options? Reach out! We’re here to help, no strings attached.
