Like many other people in Vancouver I was disappointed in the market report that was published by the Great Vancouver Real Estate Board on Monday. I’m sure if you are reading this you probably had a chance to view some of the numbers, but in case you didn’t have the chance you can catch up here. I’m having lots of clients inquiring about what their next move should be with all the uncertainty in today’s market so I thought I would take a second and give a quick overview.

I honestly still think Vancouver is a safe place to have your money. With my profession I know I’m slightly biased, but I also own a condo on Vancouver’s Westside so I do have my money where my mouth is.  When it comes to buying home and investment properties I say you should continue looking!

Monday’s stats tell us there is a huge supply of inventory on the market right now. We are seeing more than a 16% increase in inventory compared to May 2011 and a 14.4% increase from April 2012. What is important to point out is that overall prices haven’t dropped, but the volume has. The Greater Vancouver Region benchmark price for all residential properties was actually up 3.3% from this time last year and up 2.4% compared to the last three months. What we are seeing now is simply a shift in the demand curve. There are less Buyers on the market right now, but enough for us to see continued growth at a slower rate then we’ve become used to.

I think when it comes to buying and selling we should be aware, yet welcoming to the current situation. It’s good to see markets with slow steady continuous appreciation. What I can say is we are currently in a balanced market. I have seen a decrease in volume, but an increase in prices (overall). It’s also important to point out that no one side in the game of Buyers and Sellers appears to have the upper hand at this point.

BUYERS

So what does this mean? It means keep shopping! It means we haven’t seen this kind of inventory in a long time! It means that you as a Buyer have more bargaining power when negotiating terms and price in the contract! If anything you should take advantage and try to capitalize during times like this. Stick to your wish list and find the perfect home or investment property now while you have the better negotiating position with lots of properties to choose from!


SELLERS

If you own a property and are thinking of Selling it’s not going to be the end of the world.  The bubble isn’t bursting. In fact it really depends on what side of the bubble argument you’re on as most economists can’t seem to agree as to whether Vancouver is even a bubble market (but we’re not here to talk about the bubble situation that will have to be another post!).
When it comes to selling your property I think it’s more important than ever to pick an agent that understands this balanced market. Now is not the time to have a inexperienced agent walk into your house and “buy your listing” by flashing a huge number in your face (as I can guarantee you more then ever you will be reducing the price within two weeks to market value). On the flip side now is also not the time to slash prices and give away your property. It’s important to pick someone to represent your home who is using “outside the box” marketing techniques and actually succeeds in creating a buzz over the listing. In this market you need someone working for you that isn’t afraid to roll up their sleeves and get to work.