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Tag: real estate value

JANUARY 2023 MARKET UPDATE

January 2023 Market Update

The real estate market is generally always evolving. In Vancouver and other major centres in Canada, the market has remained strong throughout the pandemic, however, prices have been softening and sales are taking a little longer than during the peak times in 2021/2022.

JANUARY 2023 MARKET UPDATE

Sales

According to the Real Estate Board of Greater Vancouver (REBGV), January 2023 saw 1,022 home sales, more than a 50% decline from January 2022. When comparing January 2023 to December 2022, sales declined by just over 21% from 1,295 units sold in December.

Listings

The Multiple Listing Service ® (MLS®) in Metro Vancouver saw 3,297 new listings in January 2023, whereas January 2022 saw 4,170 homes listed for sale. While this represents a 20.9% drop, it reflects a significant increase against December 2022, which saw only 1,206 new listings.

Prices

According to the British Columbia Real Estate Association (BCREA), 3,047 residential units were recorded sold in January 2023 across the Province. Year over year, this represents a decrease of 50.3%. In greater Vancouver, the average price fell 8.4%, year over year, to $1,167,134.

Interest Rates

The Bank of Canada interest rate has undergone eight (8) increases over the past year, however, indications are that further increases may be suspended if the economy continues to warrant this policy.

The Bank of Canada rate increased from a low of 0.25% in March 2022 (and many months prior) to 4.5% in January 2023. With this, comes higher prime rates, as well as higher variable and adjustable mortgage rates.

Cooling Off Period

Effective January 1, 2023, the Government of British Columbia has enacted a new regulation allowing home buyers to back out of a real estate purchase for up to three business days after signing a contract. This cooling-off period applies only to the purchase of the residential property.

The Province believes it will provide buyers an opportunity to do their due diligence for obtaining financing or having a home inspection completed even if the buyer does not list these as “Subjects”. Now, the buyer can end the contract for any reason, within three (3) business days. If deposit funds have been paid upon acceptance of the Offer, the buyer is entitled to a refund.

Buyer beware: should you cancel a contract within the three-day cooling-off period, a Recission Fee of 0.25% is payable to the Seller. For example, if the purchaser exercises the right of rescission on a $900,000 home, they’d be required to pay the seller $2,250.

How this will affect the real estate market in Vancouver remains to be seen. For all your real estate needs, contact One Flat Fee and speak with our professional, qualified team.

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home valuation

EVALUATING YOUR HOME

home valuation

How do you estimate the value of your home and why does it matter?

Estimating the value of your home is not a one size fits all formula. There are a lot of different factors that go into determining the value of a home such as:

  • Size – is your home typical of others in the area or is your home smaller or larger?
  • Location – are you near schools, shopping, or other amenities?
  • Neighborhood – is your neighborhood an up-and-coming area, is it well established, or is it in a more or less preferred area of your city?
  • Updates – if the home isn’t new, have any updates been done such as new furnace, roof, painting, or other interior renovations?
  • Age – how old is the house and are there any issues as a result of its age?
  • Features – does it have anything other homes in your area don’t, or are you missing some features others in the area commonly have?
  • Current market conditions – what is happening in your region? Is it a buyer’s market with too many homes for sale, or is it a seller’s market with low inventory and a lot of potential buyers?

Do It Yourself Estimate

If you’re prepared to tackle the evaluation and determine on your own what the home is worth, there are a few things to look at.

  • What are comparable homes in your area selling for?
  • Are they bigger or smaller than your home?
  • Are they in better or worse condition than yours?
  • Do they have something you don’t that will attract buyers?
  • Do you have features that set you apart from the competition?

This is the least certain method of evaluating the value of your home as you don’t always have all the information real estate agents or appraisers will look at when comparing your home to others. Use some online value estimator tools to get a ballpark estimate and see how it compares to what you thought.

Free Market Evaluation

Nowadays, most real estate agents offer a free market evaluation as a way of getting your business. Most will do a full Comparative Market Analysis to look at what similar homes are selling for, how long sales are taking, and how the sale price compares to the listing price. And since they have access to all of the neighborhood listings and sales information, they can prepare a (usually) fairly accurate valuation of what you may be able to sell your home for. 

If you are thinking of going this route, talk to more than one realtor to make sure you are getting consistent information. 

Real Estate Appraisal

For a few hundred dollars, you can have a full real estate appraisal completed by a certified appraiser. And although you’ll be out of pocket on the front end, you may be able to get more than your money back when you sell. 

Real Estate Appraisers are highly specialized professionals who take a much deeper dive than either yourself or a real estate agent will. They look at, among other things:

  • Where the home is located;
  • Condition of the utility services and fixtures;
  • The foundation of the home;
  • What condition the heating and air systems are in, as well as walls, windows, doors and appliances;
  • Special features such as fireplaces, pools and hot tubs; and
  • Signs of damage to the home or structural foundations or if there are any issues in the attic or basement.
  • All other features, fixtures and equipment in the home and on the property.

Why it Matters

Whichever route you choose to evaluate your home, make sure you are comfortable with the methods used to arrive at the listing price. If the evaluation is too high, you’ll lose potential buyers who don’t see the value. If the evaluation is too low and you list the home too low, you may lose out on thousands of dollars on the sale. On the flip side, and in a seller’s market, if you list a little bit lower than the actual value, you could end up with multiple offers and still come out ahead of where you wanted to be.

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