What you need to know to navigate the housing market in Metro Vancouver
G. MARION JOHNSON
The Vancouver Sun
The real estate market is always changing, but Metro Vancouver is currently experiencing a somewhat unusual scenario: a tale of two markets.
These days, it’s a sellers’ market for condos and townhomes and a buyers’ market for detached homes.
“Condos and townhomes are very busy,” says Jill Oudil, president of the Real Estate Board of Greater Vancouver (REBGV). “We’re seeing multiple offers. There’s low supply in the market right now compared to the number of buyers who want to purchase. With detached homes, there’s a lower sales-to-active-listings ratio. Buyers in the detached market are facing less competition and have more to choose from.
“The price gap between the two markets is getting smaller,” she adds. “It’s an ever-changing market, for sure.”
Sales of detached homes last month were down 39.4 per cent over the 10-year February sales average, according to the REBGV. Apartment sales were 5.5 per cent above it. Sales of all types of properties were 14.4 per cent below the 10-year February sales average.
Rising interest rates and stricter mortgage requirements are affecting people’s purchasing power, especially that of first-time buyers.
New lending guidelines require borrowers to pass a “stress test”, showing they could handle mortgage payments should interest rates continue to increase.
Even without the new rules, purchasing a home for the first time can be as stressful as it is exciting. Oudil recommends working with a qualified Realtor from the get go.
“This is likely the biggest financial decision anybody will make in their life,” she says. “A Realtor will guide you through the process. Nervousness dissipates when you’ve got a plan and a goal and someone to help you understand how the process works.”
Realtor Phil Moore, REBGV’s president-elect, describes the current market as price conscious. “It’s driven by first-time buyers and by ‘move-up’ buyers — second-generation buyers going from a condo to a townhouse or trying to make the leap from a condo to a house,” he says. “Homes that are priced under $750,000 are very active. And for the first time in a long time, detached-house prices are starting to come down a bit.”
He says Realtors can help buyers determine how much mortgage they can comfortably afford, a figure that may be different than what a bank pre-qualifies them for.
He will sit down with clients to go over considerations such as household and entertainment expenses and regular RRSP contributions, costs that are over and above monthly mortgage and home-insurance costs.
“We work with buyers to keep them working within their budget,” Moore says. “You don’t want them to get in over their heads.”
Realtors also help buyers with the multitude of other factors that come into play with a purchase. Depending on the situation, those could include condominium depreciation reports and special assessments, home inspections and land surveys, the age of a roof or elevator, and more.
“When I’m representing buyers, I go to city hall to get the building plan,” Moore says. “We can see if there are any outstanding issues and if the house was ever a growop. We can find records of oil tanks or oil-tank removals. That’s a defect that people are sometimes not aware of, but your Realtor will research it.
“If a previous home owner constructed any unauthorized accommodation, the city could force you to remove it,” he adds. “You can find surprises. When you’re getting guided through the process by a Realtor, it helps take away risk.”
Realtors also have exclusive resources to help buyers find a suitable home, including use of the Multiple Listing Service (MLS®), the most extensive real estate listing database in Canada. While the public has access to www.REALTOR.ca (formerly mls.ca) to view basic property information for any MLS®-listed property in the country, only Realtors have access to MLS® and the comprehensive information it contains.
The MLS® generates market comparison reports, allowing Realtors to make up-to-the-minute assessments of market conditions within specific communities.
The real estate profession is one of the most highly regulated in the country. The Real Estate Council of B.C. is a regulatory agency established by the provincial government to protect consumers through the licensing of all individuals who practise real estate in the province.
As members of their local real estate board, Realtors are also required to adhere to the Canadian Real Estate Association’s Realtor Code and Standards of Business Practice.
For first-time home buyers, having a Realtor walk you through the steps of the home-buying process in an everchanging market is invaluable. To find one, ask for referrals from friends and family or even go for coffee with a potential Realtor to see they seem like a good fit.
“You need to feel comfortable with them,” Oudil says. “If you’ve established an area you wish to purchase in, make sure you have a Realtor who’s knowledgeable in that area.
“Realtors love helping people,” she adds. “It’s wonderful to be able to guide someone through this process and see the excitement on their faces when they’re successful.”
REALTOR® and the MLS® are registered trademarks owned by the Canadian Real Estate Association.
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