The Question Sellers Ask Most

What a busy week! Who said North Vancouver and West Vancouver were quiet? Two evaluations in the past 3 days and one inspection and a subject removal...and all that after running 13 miles with the North Shore Athletic "Run Club" on Sunday. Roll on the Vancouver Sun Run and then The Vancouver Half Marathon in early May.
So... the question. When we are contemplating sale of our home (a big decision); after we have crossed the "should we sell" bridge comes the last hurdle (and the question), possibly designed to put the brakes on any rash and impetuous move is the conundrum of "Is this a good time to sell?" and more generally the big one - "When is the best time to sell?" Now, I know that my past clients and those who know me know what I'm going to say. Here it is and I'm sorry if it sounds facetious but it is the best advice I can give and part of that maximizing of return that we seek. The best time to sell (no, not a specific month when the crocusses appear or the sun lights up all the corners of our garden) is when there are lots of buyers (high demand) and less competing homes on the market (limited supply). Ah, yes you say, obviously, but how will I know that? Ask a knowledgeable and experienced Realtor - the demand at any one time can be sensed and deduced from current activity (recent sales/attendance at open houses/busy mortgage brokers/busy inspectors etc) and the supply is a matter of fact - how many detached/townhomes/apartments are currently for sale vs. last month/last year? If you're wanting advice in a location other than the North Shore, I'll be happy to refer you to a reliable/experienced Realtor. Call me.

Compromising in North Vancouver and West Vancouver!

I often said that the one thing that we as human beings did well was to rationalize our ultimate wishes and settle for that "something a little cheaper/pricier", "less of a view", "not as big a yard", "smaller" etc. This ability to compromise is paramount 'cos we would never be satisfied if we didn't (unless your name is Gates, Bronfman or Rockerfeller!). Why this has come to mind at this moment is an interesting comment I've just read about densification and the proposal that the dream of each one owning a 3 bedroom/ 2 bathroom house on a stand alone piece of land in Greater Vancouver may well be the latest dream to be "compromised" - or has that been happening for some time and we haven't been ready to admit it? What do you think?

Successful, I'll Say! North Vancouver home in demand.

I said I'd give a follow up once the Central Lonsdale home was sold. Well, it is. As of 6:45pm last evening. Three offers were presented. One Surrey based Realtor and two local North Shore practitioners. And the final verdict on this 29 year old home? A mere $785,000! Almost $70k above asking.The new family moves in by mid year. This is not a stand alone "multiple" offer situation as I am aware of some 4 or 5 since last weekend. North Vancouver and West Vancouver are seeing a strong surge of demand and homes that have been on the market for 4 plus weeks are now being spoken for. 8/9% over asking and, what, 10/15% over its likely value this time last year?? Who knows that one for sure? ...but North Shore Real Estate is clearly a prized commodity!!

Financing your North Vancouver/West Vancouver home/investment.

This just out!! "Bank of Canada Maintains Key Interest Rate

The Bank of Canada's strategy of keeping short-term interest rates steady continued with its announcement today that it would leave its key policy rate unchanged. This is the Bank's sixth consecutive decision since May 2006 to leave this rate constant.

In its announcement the Bank commented that it deems the risks to its previous inflation projections to be roughly balanced, with the main downside risk continuing to be 'that growth in the U.S. economy could be lower than expected,' and the main upside risk continuing to be 'that household spending in Canada could be stronger than expected, largely because of borrowing against increased home equity.'

This decision means that the prime lending rate offered by most lending institutions in Canada will stay put, as will rates on variable mortgages. The Bank’s decision today does not affect the rates for new fixed mortgages, the pricing of which is determined by trading in the Canadian bond markets."

That's the formal part!! What does it mean to us? Simply put, it indicates that rates are likely to stay flat (or possibly drop a little) in the next months - many are saying that we'll unlikely see mortgage rates rising this year or into next. These 5 - 51/2% figures with some "assurance" of stability is almost as low as we've been in the past 10/20 years. I'm gonna add some "selected" snippets from the "late January" - Ipsos Reid Survey: [all " "'s are direct quotes ]

"Canadians don't expect mortgage rates to rise, but do expect housing prices to go up, says survey, with Canadians voicing 'buy now rather than later' preference."

"over half (57%) of Canadians believe mortgage rates will drop or stay the same, compared to 31% last year"

"49% of Canadians are less apprehensive about interest rate increases, compared to 44% in 2006"

"a picture emerges of confident Canadians weighing their homebuying options in a very positive light"

"the vast majority (90%) think purchasing a home is a good investment, according to the poll"

"an overwhelming majority of Canadians believe purchasing a home is a good investment. In fact, the average Canadian estimates their home has increased by 22% in the last 2 years, and the 'buy now' message is coming through loud and clear across all age groups - from 25 through to 55 plus"

"0ver half (58%) of all Canadians are saying buy now, don't wait for next year"

"Forty-four per cent (up from 37% in 2006) are looking at buying within the next 12 to 18 months"

"Of Canadians planning to buy a home in the next two years, more are likely to buy a resale home (77%) than a newly-built home (23%). This compares to 74% who favoured resale in 2006, and 26% who preferred a newly-built home"


I enjoy this type of "poll" info - unlike the "who will you vote for type poll" the responders generally give their "honest" opinions!

I think that this collective Canada "opinion" is likely damped down compared to the BC (and North Van/West Van) opinion specifically. Believe me "demand is strong"!

For full tabular results, the Ipsos Reid website is www.ipsos.ca

Contemplating Selling in North Vancouver or West Vancouver?

Sellers’ Tip: Irrespective of your residing in a sub-area with a surplus of unsold inventory or one with lower than usual supply, the trick to a successful sale in 2007 remains the same. Price your home right for the market. Correctly prepare it for sale and make certain that the listing receives superior market exposure. Overpricing will unlikely earn you brownie points in the current market. Buyers have been swamped by negative press on the housing market; they are cautious and won't pay a penny over what they perceive is market value.
Sellers often wonder whether it's worth it to spend money fixing a home up for sale. Not only is it worth it, but it can be critical to selling at the highest price possible, particularly in sub-areas where the inventory is high. If your home has a dated décor it makes sense to invest in replacing items such as outmoded light fixtures, floor coverings and paint colours. Correct "deferred maintenance", or discount your price accordingly.
Imagine that you're the buyer and have a choice between a home that you can move into without lifting a finger and one that needs a complete overhaul. Most buyers won't even consider the house that needs a facelift and if they do, only at a significant discount.

Real Estate supply low on North Shore...and

Those who follow my commentary will know that I concentrate on supply and demand in an almost (?) obsessive way. Not only are there too few listings in North Vancouver and West Vancouver, a number of these listings are priced in a rather optimistic way (read, far too high). Thus, if we have (say) 20% less homes in a certain category (e.g. townhomes, North Vancouver) and if 25% of these are "optimistically" priced, it may mean that the effective (realistic) inventory is in fact closer to (say) 40% less than last year. Couple this with the evident demand - ready willing and able buyers, working with Realtors, visiting opens and MLS websites - and we have the possible makings of a gentle upward pressure on prices again. Within the week I'll have access to the full February sales/price/inventory results and I'll comment further in my Monthly Update. Visit my site www.OnTopOfTheMarket.ca and sign up for the Monthly Update and you'll get it by e-mail automatically once it's been written.