While I’ve been transitioning to my new role here at Coldwell Banker Marquise, I’ve also been busy working with buyers and sellers who seem to all of the sudden being adjusting to a busier market.
After 8-9 months of depreciating home values on the back of rising interest rates, February 2023 started a statistical reversal which has continued into March. No, home prices weren’t suddenly jumping up, but sales to listing ratios were showing percentages that were more favourable to sellers and prices increased slightly even in February in most communities throughout Greater Vancouver and the Fraser Valley.
In early March, REALTORS throughout the region were reporting significant increases in market activity. As new listings continue to lag, buyers are finding themselves without many options. This ratio is starting to see multiple offers coming back in vogue in some areas with competitive product. This is affecting buyers and sellers in different ways depending on your individual situation. Generally, when we see a market start rebounding like this, even if its just seasonal, it starts to favour those who are downsizing or selling investment property, while making it more challenging for first time home buyers and “upsizers”. If the trend that we’ve seen over the last 4-6 weeks continues, we may be at the most advantageous time for first time home buyers to take advantage of relatively lower prices. Meanwhile, it might be better for those with larger properties to hold off for a few months. That said, no one has a crystal ball and I prophecy is not a service I offer.
When the March statistics came out on April 4, it was pretty apparent to see that the Spring market had indeed shifted. Although prices throughout the Fraser Valley are still well under where they were 12 months ago, the trend is upward for the second month in a row. Detached homes, which have suffered the greatest since their March 2022 peak, are also recovering faster now than their townhome or apartment counterparts in most areas. If you would like a breakdown of what’s going on in your community, don’t hesitate to shoot me a message!
Something to remember is that buyers and sellers are faced with new legislation in 2023 . We now have a 3 day “cooling off” period, where buyers can walk away from an offer for any reason within those 3 days. However, buyers who do this will need to come up with 0.25% of the accepted offer price. While I haven’t personally come across this happening, many agents have.