Typically at this time of the year we are looking for signals as to what we might expect for the Spring real estate market. According to the sales data for January it would appear the big story this Spring will be inventory. Or if you like the number of properties available for sale to keep up with the increased buyer demands. For example, the number of sales in Metro Vancouver for January was 36.4% above the 10 year average while the inventory was down 3.6% compared to January 2020However, it would be a mistake to assume that all properties sell even in a market such as this. In January for all property types in Metro Vancouver, the sales-to-active listings ratio was 28.8 per cent. By property type, the ratio is 26,3 per cent for Detached homes, 37.6 per cent for townhomes and 27.8 per cent for apartments. That means that 71% of the properties listed did not sell. Yet this is deemed to be a strong Sellers market. So why don't all homes sell in a market as brisk as this. Factors such as condition, deferred maintenance, a challenging location or floor plan can cause a property to sit on the market. However, a common reason is that of price. Yes, it is still possible to have an over-priced property in a Sellers market. And yes...any property will sell at the right price. Some Sellers try to test the market with a price which is arguably over what the market has been prepared to pay. Unfortunately, they risk having to reduce the price and the potential of being deemed stale or worse, that there is something wrong with the property which caused it not to sell in the first place. Potentially leaving them one of the 71% which do not sell The key take away, price your home sensibly to help yourself be one of the 28.8% which actually sell.
If you have any questions on the current market or any other real estate related topics, please give me a call