604-725-1000 Value of properties sold as of Jun 21, 2024: $1.4 Billion +

Real Estate Market 2012 & 2013 – Market Update and Predictions

Yes it is slow but it is not all doom and gloom

There has been a lot of chatter in the media about the slowdown in the Real Estate market in British Columbia. While it is true that the market has slowed down but it is not all doom and gloom. The average price is still not as low in the Greater Vancouver area as some other parts of the province.

The average residential price in Greater Vancouver declined 6.9 per cent last month from August of 2011, though last year’s figures got lift from sales of high-end homes. The survey excludes the sprawling and less expensive Vancouver suburb of Surrey.

The so called Chinese influx seems to have slowed down considerably and hence the markets that were primarily hot because of the Chinese influx have now seen a slowdown namely Vancouver and South Surrey.

The tightening of the mortgage rules is perhaps the single biggest factor that has led to the slowdown and a close second is the uncertainty of the markets and the still ever slow US housing market. Our neighbours to the south are still waiting for the market to pick up and while this wait has definitely taken longer than anticipated it seems that the Canadian market could not hold out any longer and it has followed suit as well.

Often times I get asked the question, Can I list my home on the MLS® ? and the answer is partial yes…. Through discount Real estate brokerages such as yes you can sell For Sale By Owner way. Onefaltfee gives you best of the worlds…. You can sell privately while being on the MLS® and at the same time cooperate with the Real Estate Agents. This way you can save around 50% of the commission and hence make yourself more competitive in the market place.

There is a few smart things that a seller can do in this market to alleviate some of the miseries. Firstly, the seller can choose an effective discount brokerage to sell their home. While a brokerage can be a discount Realty, it does not mean that it has to be ineffective. As long as the buyer’s agent makes a market standard commission he/she would not blacklist the property. Second, the seller can do a few simple things to make the property attractive to the buyer such as de-clutter and sometimes a simple thing such as a fresh coat of paint can add huge value to a house. Third, the seller can choose a brokerage that offers a discount or is a For Sale By Owner type of brokerage and in some instances such brokerages are just as effective and if retained for a purchase can offer cash back from the commission earned as well.

Today’s market is called a buyer’s market because of the number of properties that the buyer has available to choose from. The buyer can also dictate the prices to a large extent in today’s Real Estate Market.

The Real Estate Board recently came out its own prediction and gave the following statement:

“MLS® residential prices are expected to remain relatively stable this year and through 2013, with changes in average price statistics largely the result of a differing mix of home types sold and shifting regional demand patterns,” added Muir. Average price data for Vancouver was skewed artificially high in 2011 by a wave of detached home sales in the priciest neighbourhoods. Lower Mainland’s share of provincial home sales is expected to decline to 58 per cent this year from 62 per cent in 2011. The average MLS® residential price in BC is forecast to decline 7.8 per cent to $517,500 this year, and remain relatively unchanged at $519,000 in 2013.

MLS residential Sales

Mayur Arora

Ranked number 2 Realtor (sales) in all of Greater Vancouver (2011)