The "best" time to list your house is actually as soon as you decide to sell it. If you want to get the best price for your house, the key is to give yourself as much time as possible to sell it. More time means more potential buyers will probably see the house. This should result in more offers; it also gives you time to consider more options if the market is slow or initial interest is low.
Is there any seasonality to the market? Peak selling seasons vary in different areas, and weather has a lot to do with it. Late spring and early fall are the prime listing seasons because houses tend to "show" better in those months than they do in the heat of summer or the cold of winter. And of course, people like to do their house shopping when the weather is pleasant. But keep in mind that there are also more houses on the market during the prime seasons, so you'll have more competition. So while there is seasonality in the real estate market, it's not something that should dominate your decision on when to sell. What about market conditions — price trends, interest rates, and the economy in general? Should they have any bearing on when I list? Probably not. Even if you're under no pressure to sell, waiting for better market conditions is not likely to increase your profit potential. So how long should it take to sell?
Market Finally Coming Down to Earth!
Since May 2008, housing prices, as calculated by the MLSLink Housing Price Index®, across each residential category have declined. Detached properties in Greater Vancouver declined 2.3 per cent through June and July 2008, while attached were down 1 per cent and apartment properties 2 per cent over the same period.
The overall benchmark price for all residential properties in Greater Vancouver has declined 2.1 per cent since the end of May 2008, from $568,411 to $556,605 in July 2008.
U.S. Market Versus Canada
The Canadian Housing market is losing its edge but not headed for a crash.
CMHC Housing Market Outlook - 2nd Qtr 2008
BC will outperform most other provinces in economic and job growth during the next two years. This relative strength will translate into a high level of existing home sales, housing starts and house
prices.
High home prices will result in more homes being listed for sale. This increase in supply will slow growth in the provincial average MLS® price from the double-digit pace of the past four years. Centres where the local economy is more diversified and homeownership demand remains strong will record double-digit price gains again in 2008.
Ottawa Tightens Mortgage Insurance Rules
- Cutting the maximum amortization period to 35 years from 40.
- Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.
- Establishing a requirement for a consistent minimum credit score.
- Introducing new loan-documentation standards.
Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt. Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. The Canada Mortgage and Housing Corp. (CMHC), a Crown corporation, as well as private insurers provide mortgage insurance. The government backs CMHC and also private mortgage insurers so the private insurers can compete with CMHC.
Experts Say Go With Variable!
Do Not Call List Coming Soon
Many Realtors use telephones and door-knocking to find new business. We like to personally talk to people who may be selling or buying a home. After all, building a relationship with you and offering good customer service is how we do business. Being personable saves on the constant stream of impersonal and unaddressed flyers, postcards and form letters, not to mention a tree or two.
May Statistics
New listings for detached, attached and apartment properties increased 20.2 per cent to 7,390 in May 2008 compared to May 2007, when 6,149 new units were listed. New listings for detached, attached and apartment properties increased 20.2 per cent to 7,390 in May 2008 compared to May 2007, when 6,149 new units were listed.
“With more property listings and a decline in the number of sales, prices are not increasing as rapidly, now down to single digits overall, which is good news from an affordability standpoint,” said REBGV president, Dave Watt. “The housing market is at a balanced state, sellers have more competition and buyers have more selection to choose from."
Attached property sales in May 2008 decreased 24.7 per cent to 555, compared with the 737 sales in May 2007. The benchmark price of an attached unit increased 9 per cent between May 2007 and 2008 to $478,931.
Bright spots in Greater Vancouver in May 2008 compared to May 2007:
Coquitlam up 45.2 per cent (45 units sold from 31)
Apartments:
New Westminster up 13.6 per cent (100 units sold from 88)
Metro Vancouver Resale Market Cools from Red
The main factors tempering homebuyer demand will be high home prices and softening consumer sentiment. With the average resale home price in Metro
Vancouver at more than $600,000 and still rising, some potential buyers will opt to delay their purchase. Some low equity and first time home buyers could find it difficult to negotiate a mortgage with achievable monthly carrying costs, in spite of low mortgage rates. First time homebuyers are an important source of homeownership demand, particularly for apartment condominium units, making up more than one-third of people who bought a home in Metro Vancouver over the past year. The housing market collapse in some parts of the US has added uncertainty in consumers’ minds. This unease, combined with slowing economic growth in Central Canada and layoffs in the BC forest industry have contributed to lower levels of consumer confidence. Combined with mortgage rates above year-ago levels, these factors led to a decline in home sales in the first quarter of 2008 and will keep sales flat in the near term.
The supply of resale homes on the market will grow as homeowners look to capitalize on the home equity build-up resulting from four straight years of double-digit home price increases. The decision to sell may take on added urgency in light of the housing market downturn in the US. In the first quarter of 2008, the average number of active MLS® listings for sale in Metro Vancouver increased nine per cent compared to the same period last year, with the supply of apartment condominiums for sale increasing more than other home types. At the end of the first quarter there was a five month supply of homes on the market, up from four months one year ago. This level of supply is still shy of the seven to eight months supply that has characterized balanced market conditions historically in Metro Vancouver. Look for this trend of increasing listings to continue through the remainder of this year and into next.
The combination of moderating sales and more homes on the market will bring demand and supply conditions closer to balance and slow home price growth. Moderating sales and more homes on the market will mean fewer multiple-offers per property and more choice for homebuyers. Homes will take longer to sell as the market cools from the red hot pace of the past few years, and reflect a more normal pace. Home price growth will slow into the single digit range this year, with eight per cent appreciation in values forecast, and a further five per cent growth expected in 2009.
This is an article from CMHC's Housing Market Outlook - Vancouver and Abbotsford CMAs Second Quarter 2008. To read this report in its entirety, go to http://www.cmhc-schl.gc.ca/odpub/esub/64363/64363_2008_B01.pdf
$23 Million in Just Hours!
A real estate frenzy continues in North Surrey, where $23 million worth of apartments sold in less than four hours over the weekend. Almost 10,000 people registered for the third phase of Quattro, a residential apartment project near 108 Avenue and King George Highway. The 109 available suites sold in less than four hours.
“The energy for the sale was fantastic. The suites sold as quickly as we could offer them,” said Bill Morrison, partner of PilotHouse Real Estate Marketing, who has orchestrated all of the Quattro sales. “At least half the buyers intend to live in the suites they purchased, so it’s apparent people want to be a part of the new downtown area in Surrey with its close proximity to SkyTrain and other amenities.”
Saturday’s sell-out was the third wave of brisk buying at the development. Building one in Quattro sold out in February 2007 in four hours. Less than a month – and 7,500 registrants – later, building two sold out in an unprecedented 67 minutes. The first building is expected to be finished for occupancy this fall. Construction of the second building is well underway.
Quattro is a six-phase development located on 10 acres of property at the corner of 108 Avenue and East Whalley Ring Road in North Surrey. Suites in the third phase began at $139,900, and range from 407 to 1,215 square feet.
Real Estate Bucks Fears So Far
Prices Hold, but More Owners Want to Sell
by Jeff Nagel - Peace Arch News - May 08, 2008
The benchmark detached house in Metro Vancouver climbed 5.6 per cent in price in the first four months of the year to $771,321. Townhouse prices are up on average 4.5 per cent year-to-date in Metro Vancouver to $477,900, and condo prices are up 2.9 per cent to $390,000.
Equivalent figures for the Fraser Valley Real Estate Board show the average detached home sold for $547,600 in April, up 1.8 per cent from December. Fraser Valley townhouses went up 1.7 per cent on average to $344,600 and condos there are up nearly three per cent to $235,800.
But there is evidence the market is softening. April sales are down from this time last year in Metro Vancouver and both realtor groups are reporting a major surge of new listings from owners who now want to sell their property. Fraser Valley realtors reported the jump has pushed active listings to near-record levels. The groups called it a rebalancing of demand that had heavily favoured sellers over buyers.
“There is a lot more choice on the market today,” said David Watt, president of the Real Estate Board of Greater Vancouver. Other observers say fear of a major drop is a likely factor behind the increased listings.
“We’re coming off four straight years of double-digit home price increases,” Canada Mortgage and Housing Corp. analyst Robyn Adamache noted. “I think people are partly taking into account what’s happening in the U.S. and getting worried, but also just wanting to get their homes on the market to take advantage of some of the equity gains they’ve seen.”
Vancouver’s job and population growth trends and geography, however, make a major collapse here unlikely, she said. CMHC forecasts a residential real estate price gain of eight per cent this year and five per cent in 2009. Adamache said the proportion of homes bought and resold within 12 months – a good measure of flipping – has been trending down since mid-2007. The realtor board stats show that while prices in most areas are still up strongly from one year ago, several cities have seen recent prices either plateau or even dip slightly from December to April.
Among the areas where prices dipped in April were detached houses in New Westminster and Pitt Meadows, townhouses in Coquitlam and North Vancouver and condos in North Vancouver and Vancouver’s west side. (In each case, April’s benchmark price was down from the three-month average, signaling the latest home sales went for less.)
In the Fraser Valley, the average sale price for White Rock houses dropped 3.9 per cent in the past month and Abbotsford townhouses were down 8.5 per cent. In contrast, some of the biggest recent gains have come in Port Moody after the province announced that city would be on the route of the planned Evergreen Line SkyTrain extension. The benchmark detached house price in Port Moody soared to $813,900 in April – up 31 per cent from $620,000 in December.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.