Hello and welcome to the unofficial ‘end of summer’ and ‘Back to School’ season. This is a time of change for a lot of people as they switch from the carefree days of Summer an get back into their routines and is also the start of our fall season increase in sales activity.
You may have been hearing news about the slow-down of the Real Estate market and getting the impression that we are close to market collapse but I caution you to not put all your eggs in this basket. Yes, there has been a significant slow-down in the market activity in higher-end properties but we are still facing a shortage of inventory which is especially evident in the $650,000 and less price point. Town-homes, condo’s and well priced single family homes are still in high demand and the days of multiple offers are not over yet. Inventory is climbing and we are somewhere between a ‘sellers market’ and a ‘balanced market’.
In the USA (our market follows the same trends), Freddie Mac, Fannie Mae and the Mortgage Bankers Association all agree that sales will increase in 2019. This doesn’t address price or inventory levels but it is good news for sellers. I personally feel that demand is still high and as we see more inventory coming onto the market, buyers are negotiating a bit harder, but prices are not falling and when the ‘right one’ comes onto the market – buyers are moving fast.
HIGHER PRICED PROPERTY
In the $1 million and over price point, we have seen a slow down of transactions and inventory levels climb. In this sector we are fully into a ‘balanced market’ or even a ‘buyers market’ and simultaneously we are seeing some record setting sales on Vancouver Island and the Gulf Islands. Most recently… I just sold a private island for $3,050,000. If you are in this price point and need to sell, I suggest a review of what is listed that competes with your property and setting an aggressive price. We will see a dip in the values of higher priced properties as sellers are forced to reduce to get a quicker sale but I believe that they will firm up in the Spring. Again, predictions are for a strong 2019.
Need some more info? Call/text/email me to chat about the market in general or about your listing.
All the best,
Excellent analysis of the market.
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