COVID-19 continues to challenge the norm for real estate in the lower mainland. Many people have questions and concerns regarding the buying and selling process today.
Question #1: Should we buy now, or do you think the mortgage deferral program will catch up with homeowners and they will sell for less in the future?
At this point, waiting for housing prices to come down does not seem logical. There has not been a big enough trend to suggest that mortgage deferrals will influence prices.
For mortgage deferrals to make a bigger impact, prices today would have to be less than what people paid for the properties back in 2017.
Single family homes are still selling strong right now. First time home buyers are probably the most affected by COVID-19; however, they are also some of the most active in the market.
Overall, this is unknown territory and there is not a lot of data on how the real estate industry will change throughout this pandemic. It is best to buy when you find the right property as rates are so low right now. Do not wait out of fear for what might happen in the future, instead wait for the perfect house or a buyer’s market for the specific type of property that you like.
Question #2: As a real estate agent, what kind of conversations are you having with your seller if their property has not received any offers?
A lot of home buyers are already stretching themselves financially to be able to afford property in greater Vancouver. Now is not the time to overprice your home when selling because you may receive very few offers.
It is important to understand the value of the home and the market activity on those specific type of properties when setting a price. Most sellers do not have the experience or knowledge of what the best price for their home may be – talk to your real estate agent to get their opinion.
For example, condos have a lot of selection right now and are selling at over 97% of list price. If your listing is too high, it might automatically take it off some buyers’ lists. It must be a unique or luxurious property for it be overpriced and still sell.
Additionally, buyers are generally too nice to write low-ball offers. This means that if a seller chooses to put their home on the market at a number that is too high, they may not receive any interest. After a price reduction, the offers may start rolling in.
Timing is everything when it comes to buying or selling property, so it is recommended to stay off the market until you are confident with what you are doing. Real estate agents are there to help you with some of these decisions and can offer helpful insight into this ever-changing market.
Listen to The Garbutt+Dumas Real Estate Podcast: Realtor Q&A – When is the Right Time to Buy or Sell? episode to listen as James and Denny offer more insight into the buying and selling process.
Do you have questions regarding the best listing price, comparable properties, and when to buy real estate? We would love to hear from you – contact us and we can help you with some of the specifics.