People love to talk about real estate as it is the hottest everyday conversation maker. I even have people approaching me recognizing that I'm a realtor from my RE/MAX pin on my blazer, loving to talk about the real estate trends.
The conversation is usually starts with, "so, how is the market" and or "oh, by the way, how much is my home worth now?"
I love to help people for their real estate questions and needs. regardless if even they are only curious and have no intention of buying or selling. To me, finding and connecting with people organically, is very precious as they can one day become my clients.
As a homeowner, it is important to be on top of your biggest investment and know what your local area real estate trends are. As our market constantly fluctuating, real estate enthusiast finding useful to understand how these trends work and can impact their local economy.
The basic rule of real estate is about supply and demand. when we have low supply for a sustained period, demands increases and it tips the market toward seller's market. the reverse is also called a buyer's market when supplies of inventory adds up for sustained period and satisfied the demands.
We live in a beautiful city surrounded with mountains and ocean and realistically, the lack of land to build and extend. therefor, with the help of various municipalities changing the zoning and building permits, developers helping the city to go upward in to sky. There has been many talks about affordable housing as with the current price of real estate, owning a home for young generation is becoming a far fetched dream. But lets me a bit more realistic. taking away the 2016-2017 activity out of our equation, studying the trends of real estate, shows a steady growth for all type of homes in most areas, and that is not realistic since most real estate buyers, regardless of their motivation, wish to see growth in their initial investment and to build enough equity in sufficient term. Especially in our city of Vancouver with limited land, this is a fact that real estate is truly a long term investment.
Ten years ago, regardless of the area, everyone yet was talking about how expensive the real estate was and how to create more affordability. BC Government meddle with the issue and added many taxation in the name of creating more housing, and affordability. Here we are again, the party in power, once again, wants to be the hero and in the name of affordability wanting to control and cool down the market and have created tremendous taxation.
Is it going to help? Would the money truly go toward creating more affordability and housing supplies?
As a Canadian homeowner, it is important to know the current influences that can impact real estate sales. low sales does not mean lower property prices, and that is something that media in effect, has wrongfully translated.
Although number of sale s for certain areas and for certain type of properties dropped, the prices didn't get affected and in certain cases increased from last year.
Home price evaluation is an extensive research. there are many approaches to evaluate a property and estimate its value;
- Home price Index (HPI)
- Average Sales Value (ASV)
- Median Sales Value (MSV)
- Sales Ratio (SR)
- Dollar per square foot.
- Comparison Market Analysis (CMA)
All the approaches above, need to be calculated based on seller or buyer's market considering;
- Type of the property
A) Single Family Detached (SFD)
B) Attached (Condo/Townhouse/ 1/2 Duplex)
- Area and sub area
in addition there need to be further due diligence in:
- Zoning and re-zone potential
- Nearby development and future plans
- Proximity to social housing and non-marketable properties
- Land and its characteristic
- Assessment taxes which are close relation to:
A) Local schools
B) Community centres
C) non-taxable lands like churches and places of worship.
- Walk score and commute friendliness.
All the factor above are important to consider when evaluating a price for your property.
I have an extensive tools, apps, data and most of all market knowledge that can provide an extensive detail home evaluation for your review.
Contact me today and I'd be more than happy to provide you with much further detail.