After several years where home sellers had a market advantage, now buyers have more selection, more time to make good decisions, and their dollar buys more house than it used to.
Sellers have to be prepared to price to the current market or wait until the balance swings again. But when sellers do sell and they become buyers, they are much more likely today than a year ago to find a property they like and have a smooth, unhurried move.
Yes, but aren’t sellers all losing money?
Well, no, most are not. For example, if a seller in the Lower Mainland bought their detached house 3 years ago and sold it last month, they enjoyed an average increase in value of 38%. (And, if they had bought that home with a 25% down payment, the increase of their actual cash invested would be 150%.)
For Lower Mainland apartments, the 3-year numbers are even larger, with an average 71% increase in value.
These numbers are for Benchmark Prices of “typical” homes – but of course every area and neighbourhood is unique; generally, high-priced homes have lost more value than mid- and entry-level homes.
Source: Real Estate Board of Greater Vancouver
If you’ve owned your home for a few years and have built up equity, a softer market can be a great time to trade up. With higher priced homes losing more value than lower priced homes, the price gap is narrowed.
Call me to see how this works – and how you might benefit from it.