What Is A Buyers’ Market? – And Then A Recommendation Based On A Proposition

Market - And The A Recommendation Based On A Proposition

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.

To join the group getting the e-mail version of this update – send a request now toalanskinner@shaw.ca and you’ll be assured receipt; phone me at (604) 988-7368 or visit www.OnTopOfTheMarket.ca
Alan

Alan Skinner
OnTopOfTheMarket.ca
Re/Max Crest Realty
Vancouver – NorthShore
http://www.AlanSkinner.com
Local Phone: 604-988-7368
TollFree: 1-800-665-1455
Fax: 604-985-3612

June 2010 Numbers

June 2010 NumbersNow the May 2010 YTD figures for our North Shore.

North Van detached homes sold are up by 15% from the same period of the previous year, attached (t/hses) up by 24% and apartments up by 27% from ’09. Detached average prices up 18% and inventory May 31st, up by 50%. Average prices up 15% (t/hse) and up 18% (apts). Inventory (t/hse) 2% higher than ’09 and (apt) up 24% from ’09. N/Van inventory is significantly higher than 2009.
In West Van, detached number of sales is up by 58% from ’09.  Average price up by 21% and inventory May 31st up by 18% from ’09. On the condo side  attached (t/hses) sold are up from 2009 to 36 vs 11 units; average price up 65%. Active listings are up from May 31st (55 vs. 41).  Apartments reflect 73 sold vs. 55 during ’09  a 32% increase; with average price 33% higher than ’09 and active listings up 11% from May 31st 09.

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.

To join the group getting the e-mail version of this update – send a request now toalanskinner@shaw.ca and you’ll be assured receipt; phone me at (604) 988-7368 or visit www.OnTopOfTheMarket.ca
Alan

Alan Skinner
OnTopOfTheMarket.ca
Re/Max Crest Realty
Vancouver – NorthShore
http://www.AlanSkinner.com
Local Phone: 604-988-7368
TollFree: 1-800-665-1455
Fax: 604-985-3612

Podcasts

North Shore Real Estate Radio

This year I pledge to continue my personalized service and further reduce my business ecological “footprint”. A new initiative is the radio (podcast) library which I am creating.

All North Vancouver Real Estate “Updates”, reports and information articles, checklists etc. will be archived on my website and available for download or desktop listening 24/7. You can access the information you seek when the spirit moves and not when someone pushes yet another flyer into your mailbox. I am most excited about these developments. Input as to the topics for “programming” you feel would be of interest is strongly sought. Please e-mail This email address is being protected from spam bots, you need JavaScript enabled to view it or call me 604 988-7368

Click on the “Launch Podcast Player” Icon in the top right of this website to listen now

North Vancouver Real Estate

Podcasts

Selecting Your Real Estate Agent

Selecting Your Real Estate Agent

Selecting Your Real Estate Agent. The Agent brings the market to you. The market decides the price.

The right Agent is the one who knows the market and can get you the best price possible – not the one who promises you the highest price just to get you to list with them!
Many of the same questions, hesitations and strategies connected with seeking out professional assistance in any field – whether you’re looking for a doctor, dentist, lawyer or accountant – come into play when you’re selecting a real estate agent.

Some people find an agent through a family member or friend. This is often a reliable approach. However, you might not always find the most compatible assistance this way. In a transaction as important and intensive as buying and selling a home, that can be critical.

A referral from a family member or friend doesn’t guarantee a perfect match. Just think of something as simple as a movie or restaurant recommendation. Your close friends rave about a new Chinese food place downtown – so you check it out. Could this possibly be the same restaurant they were describing? Mediocre service. No chopsticks. Bland flavors. It’s the same restaurant. Same cook. Same waiters. Just different perceptions.

Regardless of how you get an agent’s name, it might be worth interviewing at least a couple before you make a final decision – or at least arming yourself with some criteria to go over with any agent who has been recommended to you.

A few things to look for:

If you’re looking for an agent to list your home, be wary of anyone who suggests they can get an unreasonably high sales price. An agent might use a high listing price to secure a contract, only to seek a lower price later, after little traffic is generated at the initial price level.

Meanwhile, you’ve lost what can be the most critical time period in selling a home – the first weeks immediately after it’s listed.

Check on experience and productivity. As with most professions, experience pays in real estate.Experienced agents know the market and the marketing process. They’ll have the best chance of quickly and smoothly helping you to buy or sell your home.

The number of transactions an agent is handling monthly or yearly is going to give you an indication of how committed the agent is to the profession. Is the agent a part-timer who’s just dabbling in real estate sales – or is the agent a full-time professional whose livelihood depends entirely on an ability to successfully and repeatedly close real estate transactions?

Does the agent know the market ?

Is the agent part of a national network? This can be especially important if you’re selling in one city in preparation of moving to another. Your selling agent can refer you to a professional,compatible agent in your destination city – and keep in close contact with that agent so both your selling and buying efforts are closely coordinated. It is no secret that Re/Max sells more North Shore property than any other realty company; many of those buyers coming directly from Re/Max agents in other geographic locations.

And a final point: Does the agent seem primarily interested in sharing expertise and market knowledge in an honest and straightforward manner? Or does the agent seem more interested in telling you what you want to hear ? Or worse still are they getting you to sign up with them just to pass you off to an assistant who will deal with the “trivia” of actually selling your home ? The worst time to secure the services of a “yes-man” or an agent who seems to have too many irons in the fire is when you’re entering a transaction involving something as important as your home. You need straightforward, reliable information – even if it’s not necessarily flattering – regarding the home you’re selling – or very encouraging regarding a home you think you might want to buy.

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