As most people in Vancouver are aware, the real estate market has not been friendly with its sellers; though it has not been friendly for its buyers either. Some people think it is a good thing that the market has slowed down since 2017-2018 and “stabilized” however, what does stable really mean?
Stable: Large volumes of goods in the trade with small and low amounts of shifts within its value and situation.
So, if we think about it, the Vancouver’s real estate market has been anything BUT stable.
There have been many talks about how the market is beginning to move, but has it really been moving? Are more sold signs an indication of a move in the market? Are more listings a sign of a better market coming our direction? Are realtor’s Instagram stories of “new listings coming” a meaning that they are really getting another listing or is it another marketing tactic that they are using without signing a listing agreement?
Are the Realtors part of the problem? Maybe.
What is the duty of a Realtor?
According to the Real Estate licensing book itself, the duty of a real estate agent is to:
“(a) advising on the appropriate price for the real estate;
(b) making representation about the real estate
(c) Finding the real estate for the property to acquire
(d) Finding a party to acquire the real estate
(e) Showing the real estate
(f) Negotiating the price of the real estate or the rems of the trade in real estate
(g) Presenting offers to the dispose of or acquire the real estate; or
(h) Receiving deposit money paid in respect of the real estate.”
Now speaking from the client’s side, many realtors have been used to the hot unstable market that we experienced in 2017-2018 where offers were just being presented and most of those other duties were not even necessary because the market was so hot and everything was being sold quicker than ever in remarkable prices. Now some realtors forget that negotiating is a HUGE part of every deal and so is the research and demanding hours of work that come with it.
The few realtors who do follow those duties are successfully selling their listings while presenting available homes for their buyers all in good faith; which is probably why most people think that the market is back but really, realtors are just doing the job that they are supposed to and helping the market. While some other realtors are acting like those few good realtors that are working extra hard to do what they’re supposed to BUT in fact are putting less than them.
2019 Market Trends:
The fact of the matter is, according to the Real Estate Board reports, houses are staying way longer on the MLS. In the month of May, house sales were approximately 23% below the 10-year May sales average and the lowest total for May since the year of 2000; which is a fact that sellers should be considering. Furthermore, 11+% fewer active listings on the market for detached properties only and approximately 8% less condo listings on the market. Therefore, according to these numbers we are still on the negative side.
Ashley Smith, REBGV president, states that, “To be competitive, it’s important to work with your local REALTOR® to assess and understand the latest trends in your neighbourhood and property type of choice.” This is something that many people, including builders and investors should consider when choosing a realtor. While realtors have a great way of getting your property listed as THEIR listing, they might not be able to put 120% effort into actually wanting to sell your property in good faith or may not be the realtor for that specific type of property you are trying to sell. For instance, maybe your realtor has never sold newly built property in the area in subject or in the area at all. So before ruining your property’s history on MLS and the amount of money you could really receive from your investment or the house that you just built, you might want to consider WHO you want as your Listing Agent.
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Picture by realtor.ca