(And what exactly is a seller’s market?)
Whether it’s due to pent-up demand, low-interest mortgage rates or the desire to move from COVID hotspots, interest in Vancouver Island and Comox Valley housing markets is at a high. Unfortunately, supply is at a record low. (Read about it in my recent blog!)
All this adds up to a seller’s market.
Even though late spring/early summer is typically regarded as the time to buy and sell, when the market is like it is now, time of year doesn’t make a difference. It comes down to supply and demand. Now – and for the foreseeable future – supply is low and everything is in demand. From condos and patio homes to acreages and standard family homes, the buyers are there but the listings are not. Listing now before the spring rush will help ensure you get the attention (and price) you want.
What makes a seller’s market?
Simply put, a seller’s market occurs due to a shortage in housing or an excess of potential buyers. In today’s circumstances, both are occurring. During this type of market, prices tend to be higher and homes sell more quickly. Multiple offers on a home are also more likely to occur, which gives sellers negotiating power, meaning conditional offers may be rejected.
Tips for listing in a seller’s market
Selling in this market is generally easy and quick. Even so, there are things to keep in mind when you are getting ready to list:
- Work with an experienced local real estate agent to ensure you have a good understanding of the market and your competition.
- Price your home right for the area. Overpriced homes will still be overlooked, so don’t go crazy!
- Make sure your home is clean, clutter-free and ready to be shown at all times.
- COVID has made scheduling a bit trickier, so it has never been more important to be accommodating to your real estate agent's/prospective buyer’s schedules. (And make sure to visit my website for updates and explanations of our COVID-19 protocols.)
- Ensure your home has sufficient market exposure, don’t count on demand to do ALL the work for you.
- Be patient . . . remember you’re in the driver’s seat.
Tips for buying in a seller’s market
For buyers, a seller’s market means multiple offers are to be expected. Some of the things you can do to improve your likelihood of success are as follows:
- Get pre-approved for a mortgage and know how much you can afford.
- Make your offer stronger with a significant deposit amount.
- Be proactive and aggressive without being annoying. And be responsive.
- Make your offer as simple as possible. Don’t have a long list of contingencies.
- Be flexible with your move-in date.
- Consider appealling to the seller with a personal letter.
Whether buying or listing, this is an exciting time to get into the market. Why wait until spring?