Real Estate in Kamloops is booming right now. Here are the latest stats!
Residential property sales in the region totalled 2,233 in October 2016, a 38.8 per cent decrease from the 3,646 sales recorded in October 2015 and a 0.9 per cent decrease compared to September 2016 when 2,253 homes sold.
Last month’s sales were 15 per cent below the 10-year October sales average.
New listings for detached, attached and apartment properties in Metro Vancouver totalled 3,981 in October 2016. This represents a decrease of 3.5 per cent compared to the 4,126 units listed in October 2015 and a 17 per cent decrease compared to September 2016 when 4,799 properties were listed.
Last month’s new listing count was 9.5 per cent below the region’s 10-year new listing average for the month.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 9,143, a 4.5 per cent decrease compared to October 2015 (9,569) and a 2.3 per cent decrease compared to September 2016 (9,354).
The sales-to-active listings ratio for October 2016 is 24.4 per cent. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“While sales are down across the different property types, it’s the detached market that’s seen the largest reduction in home buyer demand in recent months,” Dan Morrison, REBGV said. “It’s important to work with your local REALTOR® to help you navigate today’s changing trends.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $919,300. This represents a 24.8 per cent increase compared to October 2015 and a 0.8 per cent decline compared to September 2016.
Sales of detached properties in October 2016 reached 652, a decrease of 54.6 per cent from the 1,437 detached sales recorded in October 2015. The benchmark price for detached properties is $1,545,800. This represents a 28.9 per cent increase compared to October 2015 and a 1.4 per cent decrease compared to September 2016.
Sales of apartment properties reached 1,178 in October 2016, a decrease of 23.7 per cent compared to the 1,543 sales in October 2015.The benchmark price of an apartment property is $512,300. This represents a 20.5 per cent increase compared to October 2015 and a 0.3 per cent increase compared to September 2016.
Attached property sales in October 2016 totalled 403, a decrease of 39.5 per cent compared to the 666 sales in October 2015. The benchmark price of an attached unit is $669,200. This represents a 25.7 per cent increase compared to October 2015 and a 1.1 per cent decrease compared to September 2016.
Although real estate sales in Vancouver have been receiving all the attention of late with news of record breaking sales province-wide, our own market is also reporting some RED HOT stats! Last month, sales activity in Kamloops reached the HIGHEST LEVELS SEEN SINCE 2007 representing a whooping 39.7% bump up! While we have been seeing sales numbers slowly increasing since the beginning of the year, April was truly arecord setter. Also of note is that inventory levels have been lower than normal, fuelling a 6.3% rise in the average price of homes from the same time last year. Considering the number of homes listed in our area last year at this time represented a 9 month supply coupled with inventory levels at the end of April 2016 sitting at only 5.5 months, I expect our market to see more gains as we progress into 2016. Whether you are buying or selling, this is truly a great time to be thinking real estate!! If you are keen to see more market trends go to MorganRealEstate.caand see all the latest stats!
I talk a lot about a home being the single most expensive investment in a person’s life. The cost of one’s home goes beyond how much they bought it for. Home improvements add up over the years, not to mention the blood (if you’re not handy like me), sweat, and tears that go into remodelling. Home owners are proud of their home, and expect to receive top dollar for it. This is why the one question that every Seller wants to know is,
How much can I list my home for?
As a home owner, I know how important this question is. In order to make selling worthwhile, the sale price needs to amount to the original purchase price plus all of the home improvements done since. These proceeds then need to cover the cost of a new home, which often involves having to pay off an existing mortgage.
Indeed, knowing how much you will be able to list your home for is a very serious and very emotional question.
So how does a real estate agent help you determine this price?
For starters, the majority of real estate agents do not offer home appraisals because this would require an AIC designation. Instead, most agents offer their clients a CMA of their home, otherwise known as a “Comparative Market Analysis”. We use existing data on recently listed and recently sold homes that are comparable–alike to the subject home in as many material ways as possible, including location. Recently listed homes provide us with an idea of the current competition, while recently sold homes give us an idea of what the consumer is willing to pay. By using these prices, we are able to determine what a strategic listing price would be for the subject home.
Recently sold homes are especially important in deciding what to list your home for. Consider this: Prices shown for recently listed homes are what comparable Sellers think their homes should sell for, while prices shown for recently sold homes are what comparable Buyers were actually willing to pay. So in reality, while recently listed homes are an invaluable tool for determining the listing price, recently sold homes are paramount as these prices tell us exactly what the average Buyer is willing to pay for comparable properties.
Once we have a ballpark of what the listing price should be for your home, we then help you strategically decide what to list your home for. I use the word “strategic” because that is exactly what this situation requires. Consider the fact that while your home is your pride and joy, it is only one in a sea of other houses that potential Buyers may be looking at. In order to get the attention of these potential Buyers, we need to ensure that we are not “out-pricing” them.
A common suggestion heard by real estate agents who have clients wanting to price their home too high is, “We can try at this price for a while and then reduce if needed.”
While at first glance this strategy seems okay, Sellers need to understand that Buyers DO look at the number of days a home has been on the market, and often make certain assumptions the more time has passed. One of these assumptions is that a Seller who has been trying to sell their home for a long time may be getting desperate. This makes the Buyer feel like they have the upper hand, and may make them a stronger negotiator. An even worse assumption is that there is something wrong with the home, and they will gloss over it entirely. After all, isn’t 2 day old bread more likely to be stale than a loaf fresh out of the oven?
Your home will be the most appealing to Buyers when it is first listed. This means that your home needs to be strategically priced so that the moment it appears on MLS and other online listing sites, it attracts Buyers. In order to do this, your home needs to be within the price range that they are looking for, and they need to truly believe that your home is worth this price. Pricing your home in this sweet spot creates buzz and excitement surrounding it, and in a busy market could also create a sense of urgency. This is a strategy that many real estate agents use to obtain multiple offers for their Sellers, which puts them in the driver’s seat, and allows them to negotiate a higher sale price.
At the end of the day, it is important for Sellers to understand that what they choose to list their home for is their decision. While real estate agents offer information and guidance, it is not their job to pick this price for you. Having an informed and educated real estate agent can make or break the sale of your home. Remember, what you list your home for is most likely not going to be what you sell it for. Consider the price part of your strategy, and know that the more excited a Buyer is about your home, the stronger your negotiating position will be!