It's a Lousy Real Estate Market!! Homes are Selling Like Hotcakes!!
Which statement is correct? Wth so much media attention it's hard to filter out the truth. Here are some statistics to ponder:
Today, on the Metro Vancouver & Fraser Valley Multiple Listing Service, there were 333 new Residential Listings posted. Also, today, there were 240 sales posted. That equates to a 72% sales to listing ratio. A 'normal' market is when 60% of all listed properties sell during the listing period. Yes it's not a perfect way to calculate the likelihood of any particular home selling for how much and when. However, since January of this year we have, somewhat nervously, been watching the daily stats that are displayed 'real time' on our MLXChange program. What it has been showing us is a steady crawl from a 17% sales to listing ratio at the beginning of the year to a ratio hovering around 34% in February on up through the 50-60% range and now to the current ratio mentioned above.
The 'nervousness' we experienced was not that of two Realtors 'hungry' for a sale but that of two Realtors facing a serious challenge when asked for our 'opinion' on where we thought the market was going. We wanted to give 'credible' advice to our clients and prospective clients and, more than once we took the safe road, agreeing that 'waiting' might be the right thing to do - for a while.
Now, whether you are a buyer or a seller and you ask us what we think we will point to the Facts. 72% sales to listing ratio seems like an indication that moving from one home to another is, again, a whole lot easier. Just last weekend a townhome in East Vancouver sold for $26,000 above asking price because of multiple offers. Go figure!
Are you asking me what 'I' would do? I would probably slap on some sunscreen and go for a sail. Or, maybe I would call my mortgage broker to check out the lowest interest rates in six decades! Think maybe that has something to do with the pickup in sales?
By the way, we're talking about the Urban market here. The suburbs traditionally react a bit later, but in some cases the reaction is already evident.
It will be fun watching how things develop over the next few months.
Happy sailing!
Ps. to those of you who are considering selling your home...pricing it right is still critical as the inventory of competing homes has not quite dried up yet.