I am reminded of a comment made of their market, by a US Realtor a year or so back, that it had become “a combination between a beauty contest and a price war”. This could well apply in our market too and somewhat highlights the message that “to sell one must stage the property and price it to compete”. I’ll address my usual “supply vs. demand” comments in a more basic way this month (although I won’t omit the usual N/Van – W/Van synopsis in closing). I’m addressing the number of actual sales (9 mth – year to date) of all residential units and end of Sept inventory ’11 vs. ’12.
W/Van first – total sales (’11) 1188 vs. (‘12) 686 – down 42%.
Units for sale Sept 30/11 – 624 vs. Sept 30/12 – 750 up by 20%.
N/Van – total sales (’11) 1936 vs. (’12) 1595 – down 18%.
Units for sale Sept 30/11 – 927 vs. Sept 30/12 – 1132 up by 22%
This tells us that the pairing off of willing sellers and willing buyers was far more plentiful in ’11 than thus far in ’12. It also appears that there are lots (high inventory) of willing sellers today but, at the prices asked, not nearly as many willing buyers (diminished sales).
A proposition! Say, for a minute, the Supply side represented by potential sellers, got together and said… buyers (Demand side) are not appearing confident to make the decision to buy. Therefore it makes sense to take our homes off the market (or not add them to the supply pool). But, I hear you say, that is not realistic as so many of us really want to (need to) sell. Precisely my point! Now, and this is not meant to be facetious: Sellers, realize that it is your collective wants and needs that will cause prices to drop. Supply must decrease or the confidence of the buyers must be restored. We do know that a very large part of that “damage” can be repaired by the actions of our neighbours to the south and a “normalizing” of the European economy. Just how long will that take?
What of Realtor fiduciary responsibility? We (Realtors) have an obligation to advise our clients who are considering selling, once we know their full circumstances, whether it is in their best interest to do so now or seriously consider the option of not offering the property for sale at this time. Realtors need to guard against being seen as “collectors of listings”. The recent growth in inventory will likely dictate lower selling prices for those competing for the minimal number of current buyers. Good news for potential buyers, I’m sure, but are our selling clients receiving this advice? Solicit this counsel from an experienced Realtor and then make your decision accordingly.
My recent addition of ‘SnapStats’ (what price ranges are selling and which are not) has been well received. Thanks for the calls and e-mail. I am happy to forward the past 12 month trend for not only N and W/Van but including ALL metro neighbourhoods as many have requested. Just fire off an e-mail to me at email@example.com asking for SnapStats. If all are not of interest, please ignore those other areas.
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 those wishing to get the e-mail version of this “update” and SnapStats – send a request now to firstname.lastname@example.org and you’ll be assured receipt; phone me at (604) 988-7368 or visit www.OnTopOfTheMarket.ca