The summer heat has spilled over to the real estate market! This month the Fraser Valley remained in a Sellers Market.
Looking at the table above and seeing the ‘sales ratio’ you may ask how those numbers translate into a Seller’s Market. So we thought that this month we would dive into how we determine the market as a balanced, sellers, or buyers market.
First, what is a Sales Ratio? The Sales Ratio is the current inventory of homes that are selling. It is found by taking the number of sales and dividing
10% sales ratio=1 in 10 homes selling rate
33% sales ratip=1 in 3 homes selling rate
Make sense? We then take those ratios and compare them to benchmarks which determine if the market is balanced, favours buyers, or favours sellers.
- A buyers market would have a sales ratio of 11% or less
- A balanced market would have a sales ratio of 12-20%
- A seller’s market would have a sales ratio of 20% or more
Looking at the stats in the table above, you can see that we are in a seller’s market–and have been for the past several months. If you would like to learn more about the stats for your specific area–or are interested in chatting about putting your home on the market get in touch with us today. We would love to meet with you and help you understand what the market is doing in your area!
The new year will be here before you know it! But there is still time to find your dream home in 2016—and there are 4 reasons why you SHOULD buy before we hit 2017!
- Harder for First Time Home Buyers Increased Government Intervention: With each passing month there seems to be more regulations and interest rate volatility. From the changes on October 17th, to the new one’s coming into effect as of November 30th buyers are seeing a significant impact on their spending ability.
- A Market Rebound will make Buying More Expensive The Real Estate market slowed in Vancouver for the month of October-which is good news for First Time Home Buyers. However, there is the potential of a market rebound occurring, and prices going back up in the new year.
- Segments of our Market are Increasing: Two segments have been growing in the real estate market and will continue to do so in 2017. These two segments are First Time Home Buyers and Baby Boomers looking to downsize. This increase in demand, coupled with a lack of supply, tends to bring higher prices.
- Healthy Inventory of Homes Taper Off in the Winter: The supply of homes for sale is usually fairly low in January and February, making November and December a good time to pick up a new home. Buyers like a higher selection of homes and a lower chance of a bidding war.
The new year and holidays will be here before you know it! Take advantage of the less government intervention, lower pricing, and good supply available right now. This fall and winter could be your time to find the perfect home.
Fall brings about images of brightly coloured trees, warm apple cider, pumpkin everything—and a Home for Sale sign That last one may be a new one for you, but at Young Real Estate we have 5 reasons why Fall is one of the BEST times to sell your home:
- Fall Brings About More Buyers
Fall is the best time to sell because it is right before the holiday season hits full force. Typically we see a drop in the market from December-February, so listing your home just before this hits is optimal to capitalize on a strong potential to sell your home faster and for the optimal price.
- Interest rates are still low but maybe increasing anytime
Interest Rates are always a hot topic, as recent studies show that even a 1% increase in the interest rate could lead to nearly a million Canadians not being able to pay it! The rate has held steady as of late, but rumour continue to surface of changes to come.
- The Competition is Less
There are considerably less homes For Sale at this time of the year the in spring or summer. Fall is a the perfect time to showcase your home and to play into the high demand that the market has been experiencing.
- Rumours of New Mortgage Lending Laws
You may have heard that the BC Government and the Federal Government are introducing new mortgage laws, These new laws have started to come into effect, with the first coming into play on October 17, and are working to SLOW the market—making this fall more than any other time highly desirable to sell before the buyers options become limited!
- Risk of Home Pricing Decreasing in 2017
With new mortgage and lending laws coming into effect with their goal to be to LOWER the price of homes, there is a high likelihood that we will see a drop in prices of homes. This is great for the buyer, but not so great for you the seller! Capitalize on this well the market is HOT and list your home this fall.
If you are considering placing the “For Sale” sign on your home, contact us at Young Real Estate! We would love to help you navigate the changing real estate market and we will work with you to get the best possible price for your home.