Newsletter

Homebuyers and sellers: How to prepare for the busy spring market

I think it’s safe to say we’re all eagerly anticipating the arrival of spring as the snow melts and the days grow longer.

It’s a season of renewal, not just for nature but also for the real estate market as both homebuyers and sellers come out of hibernation and prepare to make their next big move.

If you plan to count yourself among one of these groups—or maybe both—the following are some tips to help ensure a smooth and successful process as either a homebuyer or a home seller.

For homebuyers

1. Secure a mortgage pre-approval: Starting the home buying process with a mortgage pre-approval is crucial. It not only gives you a clear idea of the budget you have to work with, but also positions you as serious contender in the eyes of sellers and may protect you in the event rates start to rise. Gather your financial documents early and give me a call so I can help you fully understand your borrowing capacity.

2. Understand the market: Familiarize yourself with the local real estate market trends, including average home prices, inventory levels and the average time homes spend on the market. This can help inform your search and negotiation strategy and help set appropriate expectations.

3. Consider future needs: Think long-term about your housing needs. Factors like family planning, work-from-home requirements, and lifestyle should play into your decision-making process. Investing in a home that meets future needs can prevent costly moves down the line.

For home sellers

1. Get a mortgage pre-approval: As a seller, you should also secure a mortgage pre-approval. This step is vital for understanding how much you can afford in your next purchase and for making timely offers once your current home is sold.

2. Investigate mortgage porting: If you have an existing mortgage, understanding its portability is essential as porting a mortgage may offer financial benefits and ease the transition to a new property. As a broker, I can help you understand your current mortgage’s portability features and any applicable fees or conditions that may be involved. Additionally, if your mortgage is not portable or if it makes sense to break your existing mortgage term, I can provide the necessary information to help you decide the best timing of your sale.

3. Find a reliable Realtor partner: Choosing the right real estate agent is critical for a smooth sale. Look for agents with a strong track record in the local market, excellent negotiation skills, and a comprehensive marketing plan. A good agent can significantly impact the selling price and how quickly the property sells. I’d be happy to make an introduction for you.

4. Prepare the home for sale: Prepare your home for the market by addressing repairs, decluttering, and possibly staging the property. A well-presented home can attract more buyers and lead to higher offers. Investing in professional photography can also showcase the property in its best light online, where most buyers start their search.

By following these steps, you’ll be in a position to navigate the spring real estate market with confidence.

If you’re planning to buy or sell this coming spring season, don’t hesitate to reach out. I would be happy to go over additional tips that could help you as either a buyer or a seller.

Call me today!

Francis (Frank) Tureczek

Mortgage Professional
(778) 835-3306 ftureczek@mortgagegrp.com

This Vancouver Fraser Heights condo will be coming to the market soon. 1 bedroom and large den (early a 2nd bedroom). Let me know if you’d like more info! New floors and freshly painted. These are virtually staged photos, so you can bring your own decorating ideas.

Buyers continue to back off following rising rates as total Vancouver home sales fall 43.3%, compared to July 2021. The shifting pace of the market has introduced a more cautious attitude for buyers, as well as more available homes to choose from, creating far reduced urgency than seen the same time last year. Last month 1,887 sales were recorded for Metro Vancouver – 35.2% below the 10-year July sales average, and a 22.8% decrease from the 2,444 homes sold in June 2022.

“After two years of market conditions that favoured home sellers, home buyers now have more selection to choose from and more time to make their decision. In today’s changing housing market, both home buyers and sellers should invest the time to understand what these changes mean for their personal circumstances.”
Daniel John Real Estate Board of Greater Vancouver

The REBGV cites current conditions as the beginning of a new cycle, as home buyer demand lessens and the number of homes for sale gradually rise. The total number of homes currently listed for sale on MLS is 10,288 – a 4.4% increase compared to 9,850 in July 2021, but a 1.3% decrease compared to 10,425 listings in June 2022. 3,960 detached, attached and apartment properties newly listed for sale on MLS in July 2022 – a 9.5% decrease compared to the 4,377 homes listed in July 2021 and a 24.7% decrease compared to June 2022 when 5,256 homes were listed.

Dip In Demand For Detached Homes

Year over year, sales were expectedly down across all home types. Detached & attached sales experienced the largest declines of 50.2%, while condo sales fell by 36.4%. This same time last year, the sales to active ratio for detached properties was 25.5%, or about 25 in every 100 homes selling. For July 2022, this ratio fell to 11%.

Despite the plunge in sales, benchmark prices remained relatively stable and well above average prices recorded for July 2021. The benchmark price for a Vancouver home dipped 2.2% to $1,207,400, but is still 10.3% higher than the same time last year. Year-over-year, detached home prices were 11% higher, while townhomes were up 15.8%; and condos up 11.4%. But compared to June 2022, prices across all home types have edged down. Detached decreased 2.8% from June, while townhomes and condos experienced a 1.7% and 1.5% reductio respectively.

What Do “Balanced Market Conditions” Mean For Buyers & Sellers?

Buyer demand in today’s market poses a strong contrast to the same time last year. Sales activity is steadily slowing, confirming that interest rate hikes are pushing many prospective buyers to the sidelines. Though buyer activity seems to be pulling back, those looking to “wait and see” should be careful not to wait too long, or it might end up costing them. Housing inventory has a ways to climb before a true balanced market is reached, and the Bank of Canada warns more rate hikes are far from off the table. Through the first half of 2022, homeowners with variable mortgages have seen their payments get more costly by the month, which may have you thinking – is selling an option for me? Understanding the potential value of your home is a crucial first step, as well as mapping out your specific needs, goals and the right timeline. It’s always best to do the research first – reach out for a complimentary analysis of market activity in your area.