It may seem to the casual observer that a buyers’ market is one in which potential buyers decide not to buy. And a sellers’ market is one in which lemming buyers feel the uncontrollable need to buy (because everyone else is).
Can we conclude that decisions are so much easier when we see many others around us doing something and feel it must be a good decision (in this case to buy or not to buy) a kind of Hamlet dilemma.
Much has been written/ discussed regarding the ‘anti-cyclical’ decision. Who has not heard/read of the frenzied market action before a major downturn in both stock markets and real estate markets and, yes, we’ve all said I guess that makes sense. However, when it comes to making the decision to buy in one of these soft buyers’ markets, we invariably work on the notion I guess there must be something that the myriad ‘non-buyers’ know that we don’t know. Happy, self assured people make decisions by definition, unpleasant news does not breed ‘happy people’. One thing is absolutely for sure we cannot accurately predict peaks and we cannot accurately predict valleys. We can sit on the sidelines and wait until the market is showing gains and then compete with the confident buyers. This group will ALWAYS pay more that the buyer who competes with the smaller group (the mere handful) who are looking for deals (bargains) in high supply, low demand times. Think about it.
My recommendation (after almost 19 years of real estate sales experience AND 18 years in finance) is – find an experienced Realtor whom you consider trustworthy and get their advice on these market cycles that they have seen before! This is not intended to be self serving it does not have to be me ;).
Now, a proposition that I have stated before. B.C. and Greater Vancouver in particular, are markets at the higher end of world desirability. Canada is a stable country; we in the West have great potential; we have the mildest climate in the country and are arguably the most beautiful province (just ask Conde Nast); we are an envied nation; comparatively, crime is low; we have a higher tolerance for fellow human beings; we are an accepting people. Ergo, other people on this planet (and many in other parts of Canada) would love to live here. What part of DEMAND do we not understand? We are a relatively small region (Vancouver in particular) what part of limited SUPPLY do we not understand? View all this in light of the annual Mercer and other most livable city reports and .. conclusion?
Demand is dividing into two categories those making decisions to buy and take advantage of the opportunities out there and those choosing to move their demand to a future pent up position i.e. defer the buying decision. As we see this higher number of new listings coming on the market we know we will see a period of levelling (and lower) prices. How many will recognize this as an opportunity?
Again, visit my website to see and hear the new developments. I continue my commitment to keep you… www.OnTopOfTheMarket.ca – the go to site for North Shore Real Estate analysis and jumping off point for FULL market listing information.
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Re/Max Crest Realty
Vancouver – NorthShore
Local Phone: 604-988-7368