BE AWARE-THE COWICHAN VALLEY MARKET IS CHANGING!
There has been a lot of recent talk among myself and my colleagues here and on Vancouver Island in general. There is no question in anybody’s mind that the real estate market is changing now and it’s been quick. The volume of sales is down, inventory is up, the number of days that it takes a property to sell is growing, and prices are starting to ease. For Sellers this sounds troubling but as in any situation there are risks and rewards for all parties.
Home Sellers Have Had It Easy
Home sellers have had it very easy for the last two years with 30-40% price appreciation and a high likelihood of multiple offers. The number of multiple offer situations has dropped by 60% compared to just a few months ago and is trending downwards. This means that sellers need to price their homes sharply to motivate buyers. Without sufficient motivation, buyers are content to stay on the sidelines. Sellers who price their homes over market value run the risk of listing stagnation while their neighbours successfully find buyers.
Pricing Is Critical
If priced correctly for our current market conditions properties will still sell in a reasonable period of time especially the median priced properties. We have also noticed that upper end properties are not getting the activity that we were having just 2 or 3 months ago. There is an air of caution in the wind. As the Vancouver market slows so does our own market.
The picture for buyers however is improving. Although we are technically still in a Seller’s Market, with 40% inventory growth since last year, buyers in most market segments can once again take a little bit of time to look at a few properties before putting pen to paper. Many buyers are taking a wait and see attitude, hoping that prices will fall. That is a possibility we cannot rule out.
The Market Is Cyclical
While the typical Real Estate Cycle for our area suggests that we should have another year or so of a climbing market I’m not so sure it will be that long before we will transition in to a Balanced Market which then typically leads again to a Buyer’s market.
If you wish to discuss this changing market and how it might affect you and your plans please do not hesitate to call one of the Professionals here at the Johannsen Group, RE/MAX of Duncan, at