Happy New Year!
We hope you had some relaxing and enjoyable time spent with your family and friends. It’s January and the gym I go to is a bit fuller and the shopping malls are a lot quieter. There is snow on the ground and it looks like a cold week ahead.
The Real Estate market always slows down in December and January but it is a little more active than last year at the same time. We are transitioning from a ‘Sellers Market’ to a ‘Balanced Market’ and in some price points we have fully moved into a ‘Buyers Market’. The easiest indicator of what type of market we are in is the number of months of inventory that is listed for sale. For instance, in Nanaimo there are 258 Single Family homes for sale (as of Jan 8) and in the last 3 months there were 255 sales. This means that overall, there are 3 months of inventory which is a ‘Balanced Market’ but in some price points and locations, there are more than 14 months of inventory which is firmly a ‘Buyers Market’. Contact me if you want to discuss the market in your price range in more detail.
2020 MARKET OUTLOOK
The outlook for 2020 is quite mixed depending on who you follow. Of the S&P500, half are expecting a recession in 2020 and half are not expecting it until 2021 or later. Based on historical data and trends, we will see a market adjustment across the board (as a recession) in the next 6-18 months but most of the articles I’ve been reading say it’s not a sure thing. Canada is safe for Real Estate investors with a stable government, the West Coast is the jewel of Canada and Vancouver Island is the real hot-spot so we are somewhat isolated from the extreme losses that some areas experience in a recession. In 2020 I think we will see a slight drop in values for the higher priced homes, a smaller drop for the $850,000 – $1.0M homes and an increase for the homes priced under $750,000. Condo’s and Townhomes are becoming more attractive to first time buyers (just based on pricing) and we are seeing some increases in this area. Level entry homes and high quality ranchers are still in big demand and I see that demand remaining consistent for several years.
The key to selling today? Price correctly and build a good story. Well developed marketing that touches on the buyers emotions is critical to getting multiple buyers wanting your property and multiple buyers is the best way to get top dollar.
By now you will have received your BC Assessment and for most properties in this area, the assessment has gone up. Many home-owners are appealing their assessments as they feel the new value doesn’t reflect the true market value and I know of several clients that have appealed and already had the values reduced. If you want to appeal yours, contact the BC Assessment before January 31, 2020 at: https://info.bcassessment.
This link (https://www.bcassessment.ca/?
sp=1&act=) takes you to the online BC Assessment page where you can check your assessment and your neighbours and see what BC Assessment considers similar homes that have sold in your area.