THE PRICE TREND SHOWS US WHAT!??
LET’S CHAT BOTTOMING PRICES: How do we know when the market has essentially “bottomed out”? That is, when do we know when prices have landed and flat-lined after a decreasing trend? Even more importantly to most investors, exactly when do we know when we won’t go any further? The answer may disappoint - it is that we don’t know. Anyone who tells you that he or she does, is a magician! What we can do however, is carefully follow the trends for the specific product category you are trying to track. By doing this with condo prices on the Westside of Vancouver, we see that prices have essentially flattened over the past 3 months, staying solid at $783k give or take. Combined with an approaching Spring market appetite from many consumers, this could be an early sign of a flattening and stabilizing market. What’s more, is that the Westside tends to lead the surrounding municipality markets - which means that this trend may soon be replicated on the Eastside, North Shore, Burnaby and beyond. We shall keep our eyes glued on this.
ABOVE ASKING OFFERS? Yup, it is happening again. Of course, not at the rates and amounts of which exactly one year ago when 61% of condos were selling at and above asking. We saw this “Frenzy” trend shift as we proceeded through 2018 with a dip by Summer and a low by Fall into Winter. A curious trend shift we’ve notices however, is beginning in December and carrying through into February, the proportion of condos selling at an above asking has increased each month. This in our experience, is a positive market measure and a sign that buyers have confidence in the market. If a property is well priced at fair market value, buyers are willing, ready and able to commit quickly. They likely won’t pay much above market value, but are willing to jump in and that is a sign that demand is about to increase.
Questions? Call or text me: 604-710-5270.