Nanaimo Real Estate BlogRecently posted or modified blog postshttps://www.robgrey.com/blog/Copyright RobGrey.com2024-01-17T15:10:24-07:00tag:robgrey.com,2012-09-20:21637Tips on Renewing Your MortgageTips on Renewing Your Mortgage<img src="https://assets.site-static.com/userfiles/2315/image/Purple_House_and_coins.jpg" width="400" height="267" alt="Purple Interest Rate Image" title="Purple Interest Rate Image" style="margin: 6px 4px; border: 2px solid black; float: right;" />
Excellent article in the January 12, 2024 Calgary Herald, written by Joel Schlesinger. This is paraphrased from his article. Here is the link (<a href="https://bit.ly/3RWS96k">https://bit.ly/3RWS96k</a>)
An RBC report says six in 10 mortgages with major banks are due in 2024 and 2025. Are homeowners positioned to weather the higher rates upon renewal? Here are some tips to navigate your renewal:
Uninsured (CMHC-insured) mortgages can get better rates than originally negotiated.
No stress test required upon renewal. If you renew with the same lender, then you don’t need to demonstrate you can support a mortgage 2% higher than the offered rate.
Extend the amortization. Rather than paying higher amounts monthly based on a 25-year loan period, try for a longer amortization, such 30 years. This will make your monthly payment smaller and more manageable.
Get a shorter term. If the short to mid term looks like rates will finally go down, try a 2 or three year term and anticipate rates dropping. Also, a 5 year rate may be higher than a shorter term currently.
These are tips only and you should talk to your lender or a qualified mortgage broker before deciding. Read the article to get the full picture.2024-01-17T12:26:54-07:002024-01-17T13:15:12-07:00Rob Greytag:robgrey.com,2012-09-20:20678The Exponential Power of Sellers' Social MediaAs we swing into a Buyer's Market, getting maximum exposure for your home is our top priority next to putting up the bright red<img src="https://assets.site-static.com/userfiles/2315/image/Blog_Post_Woman_on_Phone_2.png" width="400" height="363" alt="Woman on iphone" title="Woman on iphone" style="float: right; margin: 6px 4px; border: 2px solid black;" /> SOLD sign.
We need to make the exponential power of social media (SM) work for you. We use an array of social media platforms to boost your listing posts including Google, Facebook, Instagram, and one of our newest tools, Ylopo. This last tool harnesses AI algorhithms to market and remarket your home.
In consultation with Jordan Cohen, the #1 RE/Max agent in the world, he has insights into making social media work in unique ways. Jordan works the Los Angeles market and many of his clients are well known celebrities and professional athletes. Jordan is from a small town and his family are small business owners. He started in real estate in 1991, the same year as myself. Other than the fact Sylvestor Stallone and other well known people call Jordan a friend, his philosphy to real estate in well grounded in the fundamentals, which is exactly what we do: try to reach as many people as possible to sell your home.
One important distinction Jordan Cohen makes is that the potential buyer for your home could be sitting among your social media friends or among the friends of your friends. Again, the exponential power of social media. It is imperative as a seller that, unless you are wishing for privacy behind your reasons for selling, you take advantage of posting our listing links to your SM feeds such as Instagram and Facebook or sharing our posts.
Ultimately you want your home in front of a qualified buyer who is actively looking. But what about the home buyer who didn't know they want to buy your home? In other words, a prospective buyer who is not looking but sees the SM post (yours or ours) and is intrigued because the home piques what they want in their next home. They just didn't know it was available for sale until now. They click, request a showing of the home, and we have a potential sale.
Attracting active, qualified buyers is truly the most important part of marketing. But friends who are sitting on the sidelines until they see your home and become your home buyer is an important market to reach also.
If you are listed with us, you will have received the links to post your home. If you see one of our ads, be sure to share it and ask your friends to share it as this will unleash the exponential power of social media.2023-10-18T12:33:51-07:002024-01-17T15:10:24-07:00Rob Greytag:robgrey.com,2012-09-20:20494Bread and Butter Market Segments Tested<img src="https://assets.site-static.com/userfiles/2315/image/House_with_stethoscope.jpg" width="425" height="239" alt="House and Stethoscope" title="House and Stethoscope" style="float: right; margin: 6px 4px; border: 2px solid black;" />I am sensing all of the interest rate hikes have finally put brakes on the market. A barometer is what I call the 'bread and butter' (BnB) segment: $500,000 to $800,000 Single Family (SF) market. This always churns along even when other segments (higher priced SF, strata, building lots) are slower. When this segment is slow, most other segments are very slow.
We have listed 3 homes in the BnB segment over the last 10 days. The usual response is either steady showings or a line up to see them. Neither has occurred. Mostly 'one-offs' - one every other day, for example. One low offer was received and rejected.
I always hedge my opinion when new seasonal markets begin and, as such, I exercise caution mixed with patience. With 31+ years of selling homes locally, I rely on the data but don't dismiss my intuitiveness.
Typically the Spring market begins in late January and the Fall market begins after Labour Day. I like to wait until 2 to 3 weeks after the start of a new selling season to get a sense of what is unfolding. Generally, anticipating a busy market, we usually see a quick start. In Fall, this means within the week after Labour Day.
We are now facing October and sales have yet to get any traction. If this continues, then the homes perceived as excellent buys will sell and the others will remain on the market, possibly chasing values downwardly. Buyers are choosing to sit on the sidelines unless they see value in a list price of a home.
Another rate hike to offset the higher inflation in August as reported by the Bank of Canada will not only pump the brakes further, but will likely result in a Fred Flintstone manoeuvre with feet through the floor, onto the ground, skidding to a stop.
Being well-priced usually results in strong activity. Sometimes this requires adjustments on the list price if you are already listed. If you are considering listing, then the best advice always is to price it sharply and remain firm on the price. This is consistently good advice which leads to a sale.
I am hoping October sees an uptick in activity and sales before the Christmas break. A late Fall Market start is better than no start at all.
<a href="https://www.robgrey.com/contact/" title="Contact Rob Grey & Associates" target="_blank">If you are thinking of selling, then contact me by clicking on this link</a>2023-09-25T10:33:55-07:002023-09-26T16:02:50-07:00Rob Greytag:robgrey.com,2012-09-20:17446Are Low Inventories Taking Edge Off Price Declines?Comparing this year’s market to last year’s over-active real estate market is like talking about fixing up a car you don’t own anymore. It doesn’t make sense any longer.<img src="https://assets.site-static.com/userfiles/2315/image/Sunny_House_Cropped.jpg" width="350" height="261" alt="Sunny House" title="Sunny House" style="float: right; margin: 6px 4px; border: 2px solid black;" />
The average price for a single family dwelling (SFD) from January 2023 to February 2023 did not change significantly. Only 46 homes sold in January with an average price of $$795,527; the average price in February was $793,790 with 60 sales. Both months had enough sales, in my opinion, to extrapolate that the 2023 SFD market is settling down after a tumultuous 2022 (it is hard to completely ignore 2022; we will be talking about it for another decade or so).
I feel the immediate conversation should be centered around inventory levels and its impact on values.
HOUSES - This year started with few SFD homes being listed and this trend appears to be continuing. While the number of sales has dropped by 40% year over year for single family homes (and down by 71% for town and patio homes; 55% for condos), one might surmise that inventory levels would climb more steeply. This is not the case for houses; a different case for strata might be made.
With interest rates now hovering around 5.25% for a 5-year term (25-year amortization), I believe the low inventory levels have shielded house sellers from steeper value declines from 2022.
At the end of February 2023, Nanaimo had 201 single family homes listed for sale. Compared to February 2010, a similar period of economic uncertainty, 484 homes were for sale. At the end of February 2009 there were 557 single family homes listed for sale. In both January and February 2009, over 200 new listings hit the market.
In the peak of the steeply upward market from 2003 to 2007, when prices last doubled, inventory levels were still more than double today’s inventory levels -an atypical Seller’s Market with enough inventory for buyers to have choices. Lack of choice today forces some buyers to make stronger offers to ensure their chance of getting the home they want and this is evident in the list price-to-sell price ratio: sellers are averaging 97.4% of their list price. In some of the busier segments, I have seen the ratio as close as 98.2%.
Another example are bidding wars. They are still occurring but infrequent. The outcomes usually amount to full price or perhaps 2% to 3% over list price.
Even with the backdrop of higher rates, buyer resiliency persists as many are still trying to get into the market. Sellers may be priced lower than last year but they are still seeing strong offers in most cases as the average SFD price is holding steady, list price to sell price ratio remains solid, and you may even get a bidding war.
Timing to the market is critical. We are now entering the Spring market and this is traditionally the best time to sell. The ‘other’ best time to sell? When inventories are low, and you don’t have competition. Now remains a good time to sell if you own a house.
STRATA - Strata encompasses apartment-style condos (or condos), town homes and patio homes. Inventory levels for condos have doubled yet sales are down significantly. I have noted from listing units in this segment that the pace of showings is slower than houses, the active listings are greater, and offers are tougher to get; this last point is reflected in the days on market (DOM) at 68; last year was 15 DOM.
Patio and town home inventories have tripled year-over-year but sale are not down significantly. In January/February 2022, 42 homes sold. This year only 16 sales in this normally popular market segment. To get sold in the strata market segment today, sellers will feel more pressure to price competitively to get the attention of the fewer buyers looking for strata living.2023-03-16T12:56:47-07:002023-03-16T13:07:05-07:00Rob Greytag:robgrey.com,2012-09-20:17166OUTLOOK FOR 2023 and 2024The Canadian Real Estate Association predicts a downward market for 2023 with a rebound predicted for 2024. CREA forecasts a
<img src="https://assets.site-static.com/userfiles/2315/image/condo_header_500x250.jpg" width="500" height="250" alt="Condo Image" title="Condo Image" style="float: right; margin: 6px 4px; border: 4px solid black;" /> decline of 5.9% nationally. According to the report, this decline reflects built-in drops already recorded from late 2022. The volume of sales will continue to drop this year and see a rebound in number of sales next year.
If you are thinking of selling, we are still benefitting from the steep incline in early 2022. If values decline by an average of .5% monthly and you were considering selling, then I would advise early 2023 versus waiting until late Spring or Summer.
Get ahead of the changes. Inventory levels are still low and the average list price to sell price is hovering around 98%, a sign of some resiliency in the market.
<a href="https://www.crea.ca/housing-market-stats/canadian-housing-market-stats/quarterly-forecasts/" title="CREA Real Estate Outlook" target="_blank">To read the full report, click here</a>2023-02-22T10:38:16-07:002023-02-22T10:50:35-07:00Rob Greytag:robgrey.com,2012-09-20:17098The Market was Steady in Late JanuaryThe Central Vancouver Island real estate market began 2023 slowly and then picked up some momentum by mid-January. A typical
<img src="https://assets.site-static.com/userfiles/2315/image/Real_Estate_Outlook.jpg" width="287" height="176" alt="Outlook Image" title="Outlook Image" style="float: right; margin: 6px 4px; border: 2px solid black;" /> start to a new year reflects buyers stepping back over the holiday season from their Fall real estate search. Many sellers pull their homes off the market around this period as well, so inventory levels drop.
This results in pent-up buyer demand which unfolds in January and February, ahead of the busy Spring market.
I have witnessed a few pre-Spring markets and recognize patterns which seldom change. It is not so much if there will be pent-up demand, but when will it start: early, mid-, or late January? February?
The rise in interest rates presented a variable we haven’t seen in 15 years or longer. Buyers will find a way to get into the market and 2023 is no different. From October through today, I noted buyers were looking at homes again and the mid-January quickening of the pulse led to some sales. I even experienced two or three bidding wars on listings.
31 January '23 - BY THE NUMBERS<img src="https://assets.site-static.com/userfiles/2315/image/Real_Estate_Image.jpg" width="309" height="203" alt="Real Estate Outlook" title="Real Estate Outlook" style="float: right; margin: 6px 4px; border: 2px solid black;" />
(2022 in brackets)
Single Family - Average Selling Price (SP): $795,527 ($1,003,705; down 20.74%).
Average Days on Market (DOM): 46 (25). Inventory Levels: 205 Homes for sale (50).
Condos - Average SP: $369,310 ($482,309). Average DOM: 68 (15). Inventory Levels: 57 (25)
Town and Patio Homes - Average SP $513,050 ($662,816). Average DOM: 49 (16). Inventory Levels: 38 (12).
Inventory levels were 4 times higher (205 v. 50) for Single Family in January. Historically this year’s inventory levels are still very low. This added to the steady start in mid-January together with sellers choosing to price according to current market conditions. In January 2022 we flirted with an average price of just over $1 million; last January had 60 home sales; this year the first month had 46 sales.
Condo sales appear to have dropped more steeply. Fewer sales of lower priced units can skew the figures.
Lot sales are sluggish. Only two lots sold in January, 2023, v. 7 in the same period last year. Days to sell is long (84) and inventory levels are high (55 for sale) but these figures have not changed much since 2022. We will monitor new home construction in 2023 as it will be a strong barometer to the local economy as construction represents 1 in 5 jobs in this region.
2023-02-15T16:26:08-07:002023-02-16T10:57:51-07:00Rob Greytag:robgrey.com,2012-09-20:15840Real Estate Stats Don't Tell Whole StoryThe Vancouver Island Real Estate Board published August sales statistics and<img src="https://assets.site-static.com/userfiles/2315/image/REaltor_Question_Image.jpg" width="314" height="160" alt="September Market Insights" title="September Market Insights" style="float: right; margin: 6px 4px; border: 4px solid black;" /> the picture painted reflects broad strokes which may not apply to all market segments. The average selling price in August for a single family (SF) home was $881,254, yet only 72 homes sold compared to last year in August when 129 homes sold.
Of the 72 reported single-family sales, 75% (53 sales) were under $1,000,000. Within these 53 sales, most were recorded between $600,000 and $850,000 (35 sales). Four sales above $1.5 million impacted the overall sales average so much so that, when removed from the mix, the average selling price in Nanaimo dropped to approx. $835,000. While a statistician may cringe at this manipulation of the numbers, I am always weary that when we have a small number of sales (72) in Nanaimo, it only takes a small number of larger priced homes to skew the results. (For the record, when the 4 high and 4 low are removed from the stats, the average selling price was $856,430).
Some key single-family stats I pulled from August’s sales data:
Lantzville garnered 4 of the top 6 sales for the month. They ranged from $1.337m up to $2.15 million (2 sales for $2,150,000). Of these two $2 million + sales, one of the homes is a resale from 2021 when it sold for $2.375 million or almost 10% more one year earlier. The other sale was new construction and therefore GST applied on the selling price.
With Lantzville recording the highest sales, two homes sold (South Nanaimo and Brechin) for below $500,000 and no sales below $415,000. Only 12 single family homes below $500,000 have sold in Nanaimo since January 1, 2022 and one sale below $400,000 all year as well ($361,700 in April).
North Nanaimo (NN) historically accounts for the sub-area with most sales (usually followed by South Nan.) in the region; it had 19 sales in August with an average selling price of $874,153 and an average list price to sell price ratio of 95.9%. This is surprising as it is below Nanaimo’s August average selling price and the list price to sell price ratio (97.6%).
North Nanaimo did not record a single sale over $1,100,000 in August. The active inventory (homes listed but not pending or sold) in NN is 61. Of these, 28 homes are over this $1,100,000. The lowest priced home in NN is currently $599,900 and then the next lowest is $715,000. Two homes are currently listed above $2 million ($2.88m and $2.475m) The average list price of the unsold NN inventory is $1,161,742.
Buyers have moved down market to buy, all driven by increased interest rates. Sellers in the $600,000 to $850,000 range are recognizing this fact and pricing their homes to attract the remaining buyers and getting the results they need – sold signs in front of their homes.
Three points come to mind:
Migration of buyers to lower price ranges as outlined.
Lower Mainland buyers are noticeably not entering our market area and buying homes in the upper ranges (North Nanaimo) as they were for the first 4 to 5 months of 2022. They are struggling to sell their more expensive homes in the Greater Vancouver market area and this is impacting the flow of buyers to the Central Island.
Our best weather came in late July and we enjoyed the sunshine through August. The summer period represents the 2nd slowest time of year behind the Christmas break. Typically, when families return from holidays and get their kids back in school, they begin normal activities again which includes selling and buying real estate. The Fall market is usually busy and starts just after Labour Day; it differs from the Spring market largely because of the onset of winter so it is shorter by a month or two compared to the Spring markets (which can begin in January and run as late as June).
The post-Labour Day market might be different this year because the Bank of Canada announced an increase of another .75% on September 7th. I feel the predictably hard-hitting slowdown we have witnessed since rates increased has had its impact already and will likely stick with us for months, or longer. This increase will be particularly hard on any homeowner who is up for a mortgage rate renewal this year or relied on a variable rate to purchase their homes. Buyers are re-evaluating their options either by not buying or choosing to buy less expensive homes.
According to a client in the banking industry, she explained that interest rate increases tend to have a lagging effect and we haven’t felt the real thrust of the current increases fully, so another increase will be “piling on”, in my view. The last increase of 1% in July will be felt 90 to 120 days afterward because lenders tend to honour a rate for 120 days and then it expires. If a buyer hasn’t made an offer and closed on the purchase within the 120 day window, then they are out of luck and are now faced with a higher rate and less buying power. Or they may choose to wait, save more money, and not purchase in the current market.
We will continue to see sales as we always do. Having experienced significant market shifts in my 31 years of selling homes and as a homeowner for 34 years, people who need to sell will price as required and buyers will always act if they perceive a home to be good value.2022-09-21T14:06:00-07:002022-09-21T14:21:13-07:00Rob Greytag:robgrey.com,2012-09-20:15727First Home Savings Account Helps Homes BuyersOnce in a while the federal or provincial governments will introduce programs<img src="https://assets.site-static.com/userfiles/2315/image/REaltor_Question_Image.jpg" width="314" height="160" alt="August Blog Image" title="Strategies for using First Home Savings Account" style="float: right; margin: 6px 4px; border: 2px solid black;" /> which appear to really help Canadians in their quest for home improvement or home buying.
Residential energy efficient programs are the perfect example. BC Hydro has its excellent PowerSmart program which offers home owners abundant tips and incentives to make your home more energy efficient. Rebates for insulation, windows, doors, space heating and heat pumps are a few of the areas.
The federal Home Buyer Plan (HBP) allows a buyer to withdraw from a registered retirement savings plan (RRSP) to buy or build a (qualifying) home.
In the 2022 Federal Budget, a new program called the First Home Savings Account was introduced which sounded very intriguing based on the pundits and experts who commented on its strengths and weaknesses. It is similar to the Home Buying Plan and an RSP but offering more benefits to any qualified person opening up this type of account.
Recently, Tim Cestnick with the Globe and Mail published an excellent article on how this program will work and its benefits. I reached out to Tim over the weekend of the 26th and he graciously replied with a link which allows non-subscribers to read his article.
He identified 9 points or strategies; I identified the major ones and summarized them below – read the article <a href="https://ourfamilyoffice.ca/articles/nine-strategies-for-using-a-first-home-savings-account/" title="Nine Strategies for using the First Home Savings Account" target="_blank">linked here</a> to see full details and then check with your financial planner or accountant for professional advice:
Open an FHSA as soon as possible – even if you don’t contribute in 2023, you get the benefit of the $8,000 of carry-forward room when you can afford to contribute, say, in 2024. If you wait until 2024, then you will lose the 2023 contribution room.
Choose the FHSA instead of the HBP. You can accumulate more in the FHSA; the HBP requires you to repay your RSP over time; and the FHSA provides a tax deduction and the ability to save over and above your RRSP.
Make contributions early – get your FHSA working for you early.
Contribute to an FHSA before your RRSP.
Contribute even if you are not sure you will buy a home. If you choose not to buy, you can add your FHSA funds to your RRSP as it doesn’t use up your RRSP or RRIF room. This is like an extended RRSP.
Here are the links:
Tim Cestnick’s article <a href="https://ourfamilyoffice.ca/articles/nine-strategies-for-using-a-first-home-savings-account/">First Home Savings Plan</a>
<a href="https://www.bchydro.com/powersmart.html">BC Hydro PowerSmart</a>
Federal <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html">Home Buyer’s Plan (HBP)</a>
The FHSA sounds like an amazing opportunity to help young people in particular get into the market with a financial instrument which also has tax benefits like an RRSP as well.2022-08-29T15:45:00-07:002022-09-21T14:22:11-07:00Rob Greytag:robgrey.com,2012-09-20:13465Market Insights May 2022 - Market trending toward normal?
<img src="https://assets.site-static.com/userfiles/2315/image/2022_Image_Keys_Smaller_Image.jpg" width="7545" height="3000" alt="2022 Image with Keys" title="2022 Image with Keys" style="margin: 6px 4px; border: 2px solid black; float: right;" />
We appear to be trending toward normal market conditions locally. With rising interest rates, the tight inventory levels are keeping the market on the ‘Seller’s Market’ side of the scale at this time. As further rate hikes appear imminent, this may push us closer to more balanced conditions.
In Single Family Home (SFD) sales for 2022, January’s active inventory by month’s end was 50. February ended with an inventory of 93; March ended with 174 active listings; April ended with 214 SFD for sale (v. 200 in ’21).
Active inventories increased but the average price dropped from $1,003,705 in January to $944,950 in February; average prices of $970,961 and $933,954 for March and April, respectively. March and April had significantly more sales volumes compared to January and February, so the possibility of the statistical average being higher in Jan/Feb increased based on fewer sales.
Another statistic: February had an average selling price to list price ratio of 108% (8% over list price); March’s sell price to list price average was 105.87% and April’s 103.2%. This may reflect fewer bidding wars or fewer buyers in bidding wars; buyers are seeing more choices and being more selective also.
Spring is usually the busiest selling season, so the actual impact of the rate increases is yet to come. The initial rate hike in January was .25% and another .50% in April. Home buyers are typically given a 120 day rate guarantee by their lender to lock-in the rate by closing on a purchase so this will delay its effect on prices, Days on Market, and List Price to Sell Price ratios.
Two more rate hikes are proposed for June and July by the Bank of Canada.
To get some context on the impact of rates, each .75% cumulative increase pushes up a buyer’s payment by $40/month per $100,000 of mortgage funds. At 2.75%, this is a $460 monthly payment per $100,000 of mortgage borrowing; 3.5% is $500/m; 4.25% is $540/m. If the average mortgage is $500,000, then the difference from the low rate to the high rate is $400/month more in mortgage payments - enough for buyers to begin rethinking what they can afford, resulting in going to a lower price range, pulling back from buying altogether, or finding more down payment funds.
BC Real Estate Association reports that average volume of sales year over year in BC is down from a peak in April 2021 to April 2022 by 34.9%. The Vancouver Island region (north of Malahat) volume dropped by only 19.9%, 2nd lowest in the province. I feel this reflects the desirability of this area for both quality of life and affordability relative to bigger, more expensive markets. Our chief provincial competitor for attracting new residents is the Okanagan which saw a 34.3% drop. The Fraser Valley and Greater Vancouver saw 44.8% and 34.5% drops in number of homes sold, respectively. Victoria's volume of sales dropped 25.7% year over year.
2022-05-18T08:44:00-07:002022-05-18T11:13:40-07:00Rob Greytag:robgrey.com,2012-09-20:12917Market Insights February 2022Market trends remain unchanged: no inventory, bidding wars for most listings<img src="https://assets.site-static.com/userfiles/2315/image/Real_Estate_Image.jpg" width="459" height="301" alt="Blackboard" title="Blackboard" style="margin: 6px 4px; border: 4px solid black; float: right;" />, and frustration faced by buyers. At the end of January, the inventory level for Single Family Homes was 50; last year at same point was 108; end of January, 2020, 215 homes were for sale.
The active inventory for the end of 2020, 215 homes, was worthy of a 'Seller's Market' label, by any historic measurement. Unprecedented has become an over-used term widely applied during the pandemic and it is difficult to see how we can find our way out of this unprecedented market.
The low cost of money is a common denominator and until market forces change dramatically, the upward pressure on prices will continue. While the Bank of Canada appeared poised to increase rates, their early January announcement of a rate increase didn't happen. I feel this added more gas on the buyer urgency fire. Now the BofC says it will raise rates at the end of March; more fuel to buyers to lock in their rate by getting into the market at whatever cost. Rates are projected to increase to 3% by the end of 2022 and 4% by end of 2023 - but are these rates high enough to slow the market?
One must also consider that buyer's are stress-tested up to 5.25% when they apply for a mortgage. This ceiling of affordability is a lot of room for a homeowner to reach before financial hardship impacts them. Furthermore the rate increases appear to be on fixed rate mortgage terms - primarily 3 year and 5 year terms. A prospective home buyer can still get cheap variable rate terms between .90% to 1.70% based on published rates as of today's date (Feb 14/'22). If buyers are willing to shoulder the risk of a variable rate, then borrowing is still very attractive and adds to buying power. I feel rate increases, as proposed or announced, will not be enough to slow the increasing values.
According to BCREA's chief economist, Brendan Osmundson, who presented to our office at last week's online sales meeting, Nanaimo will mirror the provincial provincial growth rate of 1%. This includes net interprovincial inward migration of 1116 people and 769 net intraprovincial migration. We are on a path to 120,000 people in our central Island market area quickly and the supply of new housing isn't keeping pace. More demand on top of current demand.
Another point the chief economist raised was the massive savings of British Columbians over the last 24 months: between 2018 and 2020, BC residents managed to swing their savings from -$5 billion to over $23 billion - strong financial incentive for people to go 'Up Market' in housing decisions and fueling inflationary pressures.
I can outline further insights if you are weighing selling and wish to meet and discuss your decision.2022-02-18T11:14:00-07:002022-02-18T11:35:24-07:00Rob Greytag:robgrey.com,2012-09-20:12640What to Expect in Local Real Estate in 2022With 30+ years of real estate sales experience in the Central Vancouver Island<img src="https://assets.site-static.com/userfiles/2315/image/Rising_Prices.jpg" width="259" height="194" alt="Market Outlook 2022" title="Market Outlook 2022" style="float: right; margin: 6px 4px; border: 2px solid black;" /> market, I haven't seen a market like this one, which started in March/April 2020, and continues today. The upward markets of the early 1990's and between '03 and '07 were strong but there was always inventory to sell. At the end of December 2021, less than 100 houses were for sale!
What to expect for 2022? Unless the Bank of Canada raises interest rates significantly then I feel we will see more upward pressure on housing prices. Several factors other than historically low interest rates and inventories come into play:
'Work from home' - the pandemic shook the foundations of how many Canadians work. Commuting to work is the old way. Work from Home is the new way. Homeowners began looking at their surroundings and that they will be spending 24 hours a day at home (versus 10 to 12 if they go to the office). The house may begin to feel too small. They want to upsize or upgrade (or both) to new digs. People are getting very good, and productive, when working from home. Ask yourself "is going to the office obsolete?" The answer merely underscores how long Work from Home will affect real estate prices.
Migrating Buyers - the Central Island appears expensive, unless you are selling a much more expensive home in Toronto, the Lower Mainland, or Victoria. I equate this to converting US dollars into Canadian dollars - excellent exchange rate! Selling a South Vancouver or Sydney home for $1.8 million and buying a better calibre home in Nanaimo for $1.2 million and walking away with no mortgage and/or sizable cash balance in the bank is attractive, especially if you are a Baby Boomer nearing retirement and looking at the Island as your retirement destination. With Work from Home, you can get the best of both worlds: upgraded home which is paid off, still work, and enjoy the Central Island setting.
Higher Incomes - the scarcity of labour is a by-product of the pandemic economy. All businesses and public employers are looking for new employees. First question is "Where did everyone go?" Second question: "How are we going to fill these jobs?" With immigration eliminated for the foreseeable future, labour demand has resulted in higher wages and salaries.... and buying power. People are positioned to spend on more of what they want. The Recreational industry is thriving. So is the home renovation industry. People are saving more money, too. Expensive travel is off the table. More expensive homes with low interest rate mortgages are on the table. The answer to the first question, where did everyone go? Tough question to answer.
Best Place to Live in Canada - while this is debatable to some, most people who have settled here are from somewhere else. The natural beauty of coastal island living captures people's hearts and minds. People visit and never leave. Net inward migration exceeds people leaving. This growth pattern has existed for decades and is not likely to change soon. We offer a growing hospital, vibrant university, skiing, boating, and year-round golfing. Throw in the proximity of Vancouver and you get the benefits of the big city at your doorstep.
Changing Weather Conditions - our region seems to be less affected as other regions in BC for extreme climate change conditions. When people are choosing where to relocate in BC for retirement or a 2nd home, generally the choice comes down to Vancouver Island or the Okanagan. As Central Island's chief competitor, the Okanagan is affected by devastating fires, for example. I spent close to 20 consecutive summers in the South Okanagan and love it there. Visiting this region is always near the top of our favourite tourist destinations in the summer. I am reflecting comments from people who have chosen to live there over the Island. When people are weighing where they wish to buy a home, climate change now forms part of the decision process.
When chatting with home owners about the value of their homes and where to set the price, it is a difficult process because of the upwardly shifting market. The market has been climbing around 2% to 2.5% monthly over the last 12 months in most market segments in the Central Island. For a house worth $750,000, this could be $15,000+ monthly. This does seem unsustainable and interest rate increases will impact this because higher rates diminish buying power. A rate increase (or two) won't change the course of the market quickly when other factors are at work as outlined. We have a lot to offer here and only a huge rate increase will change the desirability of life in the Central Island.
My real estate team offers all marketing tools to get your home sold: Facebook, Instagram, and Google adWords. What separates us from our competition? Two things:
Experience - 3000+ sales. Cumulatively 40 years of selling experience. This is invaluable to you as a homeowner, especially in a much more complex selling environment such as the current market.
We don't need the sale worse than you do. While we are highly motivated to get the home sold, we place your interests squarely ahead of our own. In talking with us, you will hear what we are advising is what is in your best interests. As my father used to say "As one bus leaves, another will come in behind it". In other words, if the deal on the table is not right for you, then we will go and get you the deal which is right for you".
<a href="https://www.robgrey.com/sellers/free-market-analysis/" title="Contact Us" target="_blank">Click Here to make an appointment</a>2022-01-07T15:33:00-07:002022-01-10T19:54:42-07:00Rob Greytag:robgrey.com,2012-09-20:121532021 Fall Housing Market Outlook<a href="https://blog.remax.ca/canadian-housing-market-outlook/"></a>
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<a href="https://blog.remax.ca/canadian-housing-market-outlook/"><img src="https://assets.site-static.com/userfiles/2315/image/2021_Fall_Housing_Report_.jpg" width="400" height="341" alt="2021 Fall Market Report" title="2021 Fall Market Report" style="margin: 6px auto; border: 2px solid black; vertical-align: text-bottom; display: block;" /></a>
Click anywhere on this post to read full report
<a href="https://blog.remax.ca/canadian-housing-market-outlook/">Comprehensive look at the Canadian Real Estate Market. The newly released RE/MAX Canada 2021 Fall Housing Market Outlook Report suggests strong sales activity through the end of the year! </a>
Outlook for Nanaimo for balance of 2021 - 9% Increase2021-10-13T13:46:00-07:002021-10-13T14:09:12-07:00Rob Greytag:robgrey.com,2012-09-20:12050Seller Market Conditions Isn't Always about PriceSeller Market Conditions Isn't Always about Price<img src="https://assets.site-static.com/userfiles/2315/image/Rising_Prices.jpg" width="300" height="225" alt="Rising Prices" title="Rising Prices" style="float: right; margin: 6px 4px; border: 2px solid black;" />
Sellers have enjoyed upward prices since 2015 when the average price was just over $389,000 for a house. Buyers who entered the market over the last 6 years have enjoyed an uptick which has added a lot of equity.
Buyers today are loathe to get into some of the bidding wars which have characterized the Canadian real estate markets since the pandemic began 18 months ago.
Sellers have benefitted from some multiple offers on their homes which, if measured today, show the average selling price for a home is approximately 3% above the average list price. On the average home price for August 2021, this means the average seller is getting over $20,000 above list price. Many market segments such as ranchers or homes with legal basement suites are seeing an average of between 8% and 10% above list price.
With some listings getting more than 5 or 6 offers and some seeing as many as 10+ offers, only one offer can be accepted. This leaves several buyers who did not get their offer accepted. Some buyers have experienced this 4 or more times. Missing out on a deal influences the buyer's decision process moving forward, creating a 'must get it' mindset.
Is selling above list price the only measurement in this hyper-seller's market? The simple answer is no.
Better offers
Unconditional Offers - many offers are coming in unconditional - no 'subject to' clauses like financing, home inspections, or general insurance clauses. While these are risky for buyers, they are commonplace for sellers. We are seeing buyers lose despite making the highest offer amount but they have a requirement for a financing and/or inspection clause to be included and it was the difference in not getting their offer accepted.
Deposits - the expectation for today's seller is a large deposit; this can be upward of 10% of the offer amount. The old saying in the real estate business is "the size of the deposit reflects the seriousness of the buyer". If a buyer is putting 20% as a down payment, then a larger initial deposit is manageable and strengthens their offer.
Inspections - some deals are accepted with an inspection clause (which is recommended when representing a buyer); however many buyers are choosing not to renegotiate if they find major or minor items in the inspection. First, they do not want to risk opening a contract and having the seller say no thus losing a purchase. Next, when weighed against getting an offer accepted in the first place, many buyers have experienced losing on other previous multiple offers and do not want to return to looking for a home. Therefore, budgeting for lots of fixes over and above the purchase price is much more common and obviously benefits the seller.
Single Offers above List Price - I have seen many offers this year in which buyers end up being the only offer on table yet make above list price offers. Again, many of these buyers have lost in the bidding war process and do not want to risk missing out on a home which meets most of their criteria.
With 30 years of experience, and now having had more than a taste of this current, I have the skills and experience to guide you to the successful sale of your home.
2021-09-23T13:44:00-07:002021-09-23T14:01:13-07:00Rob Greytag:robgrey.com,2012-09-20:11767New Wealth Entering Central Island Markets?<img src="https://assets.site-static.com/userfiles/2315/image/REaltor_Question_Image.jpg" width="314" height="160" alt="Realtor House with Dollar Sign" title="Realtor House with Dollar Sign" style="float: right; margin: 6px 4px; border: 2px solid black;" />The sale of higher end properties continues to grow through the Central Island market areas. This reflects a net inward migration of money from other market areas such as Vancouver and Victoria where the average selling prices are substantially higher than in Nanaimo and up to Parksville/Qualicum.
While a formal analysis won't be available until early 2022 with a Buyer Survey from Vancouver Island Real Estate Board (VIREB), I believe it is safe to say we are seeing many out of market buyers escaping larger market areas to live in smaller, less crowded surroundings, which Central VI offers. In representing many sellers locally who have homes above $1 Million in Fair Market Value, many of the offers received have been from outside Nanaimo. While this doesn't preclude locals fully, when a seller from South Vancouver or Sidney sells and comes shopping here, I equate it to converting US dollars into Canadian dollars for the value received on the subsequent purchase. Locals who are selling are then positioned to make lateral moves in value and also go upmarket, so the higher valued homes are not dominated by non-locals.
Statistically, between Nanaimo and Parksville/Qualicum, approximately 278 homes sold between $1 Million and $2 Million since January 1, 2021 to June 30, 2021. This compares to only 164 homes in the same period in 2020. One must factor in that as prices increased over this one year period, many houses moved into this range from below. This is still a 69.5% increase.
Homes valued between $2 Million and $3 Million accounted for 18 sales in the first half of 2020 and 26 sales in the same period in 2021, a 44% increase. One sale was recorded over $3 Million in 2020 (Lower Lantzville) and 5 sales in 2021. The highest value in 2021 was in Rutherford area for a 8300sf home on 2 acres for $3,999,000.
Many people look at our oceanfront properties as good value. Since January 1, 2021, 128 oceanfront homes have sold for an average price of $1,528,645 (or 100.3% of list price). This is for Malahat to the north end of Vancouver Island only (excluding The Islands).
In the same period in 2020, only 60 properties on the ocean sold and the average selling price was $1,239,723 or exactly 95% of list price.
In Greater Victoria by contrast the average price for oceanfront in the first half of 2020 was $1,653,718 based on 126 sales; the average selling price in 2021 between January 1 and June 30 was $1,850,190 based on 239 sales; almost double the volume of sales, similar to north of the Malahat but the average price increase in Victoria was 11.9% whereas north of the Malahat the average increase was 23.3% or double the percentage increase in Greater Victoria.2021-07-27T11:03:00-07:002021-09-23T13:43:56-07:00Rob Greytag:robgrey.com,2012-09-20:11692First Half 2021 Market Review<img src="https://assets.site-static.com/userfiles/2315/image/June_2021_Sales_Volumes.jpg" width="300" height="513" alt="June 2021 Home Sales Volume " title="June 2021 Home Sales Volume " style="margin: 6px 4px; border: 2px solid black; float: right;" />With 6 months of market stats under our collective belts, market conditions continue an unpredictable finish to the year. The Canadian Real Estate Association predicted an 18% increase in the average price of a home in Canada by this time next year. Reports of overseas Canadians moving back to Canada in the late stages of the pandemic. low interest rates, and high demand coupled with historic low inventories form the basis of this prediction.
Looking back, the low interest rates for a 5 year fixed mortgage (1.69% to 1.84%) from late 2020 through to early Spring 2021 lit a fire in almost every Canadian market. These rate guarantees slowly expired and buyers scrambled to get into the market before facing rate increases. The federal government then introduced stricter Stress Test rules and again buyers scurried to get their home purchases under contract to avoid further possible restrictions on what they could afford.
The impact on local prices has been stark with bidding wars continuing through to the end of June and into the Summer market. In June, 2020, for example, based on 143 sales, the average selling price for the benchmark single family home was $573,123; in June, 2021, the average was $756,998, or up 32.08%. Using a rolling '12 Months to Date' average, the average price at June 30, 2020 was $568,470, based on cumulative 1,045 sales over the previous 12 months; in the 12 months ending June 30, 2021, based on 1753 sales, the average price was $696,069, or up 22.45%. While the number of homes listed was up only 14%, the total number of sales was up 67.75% and compounding the low inventory levels.
The total dollar value of all sales over the last 12 months including raw land, strata, and single family, as reported on Multiple Listing Service for Nanaimo was over $1.6 billion.
The volume of sales going into the 2nd half of the year dropped off: approximately 190 homes sold in May/'21 and 143 homes in June/'21. Factors may include the tightened Stress Test Rules, people returning to their normal lifestyle with loosening of pandemic restrictions, and also Buyer Fatigue.
The tightening Stress Test Rules, which, simply defined, mean that the average buyer may be offered a 2.3% rate on their mortgage but must qualify with their household income at a mortgage rate of 5.25%, demonstrating their ability to withstand the stress of interest rate increase on their outstanding mortgage balance. This applies to federally regulated lenders and not provincially regulated credit unions.
Filled Campgrounds, busier restaurants, and long ferry line-ups indicate people clamouring to regain some normalcy in our lives. Many stories float locally about the increased cost to purchase an RV, if you can find one to buy. People are eager to get outdoors, albeit locally or regionally. This is a seasonally typical factor in slowing sales through summer; this year it is a more steroid-induced.
Buyer Fatigue is a real factor for fewer sales (although prices continue to increase). I define Buyer Fatigue as follows: buyers bidding well above the list price of a home only to be frustrated by another bid of more money or, in some cases, buyers making offers with no conditions at all. Furthermore, I add that now some buyers will see the price of a home as being at the most they can afford; not only are they not offering on the home as they feel the home will sell for more than their potential top bid, but they will choose not to look at the home at all. Hence fewer buyers physically viewing the home.
Buyer Fatigue requires a more complex approach to pricing homes. Do you price your home for what your neighbour sold for in a frenzied bidding war? Or do you price it reasonably within the context of the busy, high market and hope you get the same level of activity. More often than not, buyers will refrain from looking at your home, and offering on it, if they feel the frenzied high selling price has been factored into the list price. They will choose the sidelines.
I advise meeting and discussing the pricing options and how you feel your home fits into the current market values. Each price range has nuanced factors to weigh. I will walk you through each scenario and help you decide on a plan which is best for you.
If you are a buyer, then we can discuss what amount to offer and how to structure an offer to get an advantage.2021-07-14T07:40:00-07:002021-07-14T08:02:54-07:00Rob Greytag:robgrey.com,2012-09-20:10912Adjusting Prices to Reflect New Market<img src="https://assets.site-static.com/userfiles/2315/image/ReMax_Sold_Sign.jpg" width="321" height="405" alt="Sold by Rob" title="Sold by Rob" style="margin: 4px; border: 2px solid black; float: right;" />Our local markets are mirroring many markets across Canada: hot seller's market, multiple bids on many homes, and many sellers obtaining sales well above list price. The average selling price for single family homes in February, 2021, was 104.27% of list price.
On an average priced home of $638,000 (based on cumulative YTD MLS data), this represents an average of over $30,000 above list price. The average price in February 2020, was $595,223; this February: $747,413 or 25.57% higher.
The contrast to last year as we faced the start of the pandemic is stark: in February 2021, 170 single family homes were listed and 145 sold; in 2020, 133 homes were listed and only 68 sold.
February 2021 ended with only 122 single family homes for sale compared to 243 last year or double the inventory. The first 7 weeks of 2021 was one of the most frenzied seller’s markets I have seen in 30 years of selling homes locally with many offers $100,000 over list price.
As we adjusted new listings to meet the new price levels, I believe we have now begun to see this hyper-seller market begin to plateau. I feel the combination of Buyer Fatigue and gentle increase in the inventory levels has gained some traction and we are not seeing the 8, 10, or in some cases, 15+ offers on an individual listing occurring as frequently. I fielded two offers on one listing yesterday and the result was still 9% over list price.
I define Buyer Fatigue simply as buyers who have submitted strong offers on listings only to be outbid or lose to an unconditional offer. The fatigue stems from the fact this has occurred to buyers 2 to 3 times and they are choosing to step back and wait for a little calmer market conditions to unfold.
The inventory levels are increasing for possibly two reasons: one, the spring market has arrived, and people choose to sell at this time; as we see the vaccinations roll out in the near term, people appear to be growing more comfortable with having buyers through their homes as the pandemic subsides. With more listings hitting the market, potential home sellers are more willing to list their homes as they have options on the subsequent purchase side, and so goes the upward inventory cycle.
Therefore, my forecast that we will remain in a seller’s market for the spring through fall markets remains the same. Low interest rates, despite the minor bump up from last week, will continue to fuel sales and prices will plateau and remain high for the next 6 to 9 months2021-03-17T10:38:00-07:002021-03-17T10:56:50-07:00Rob Greytag:robgrey.com,2012-09-20:10745The 2021 Market Forecast<img src="https://assets.site-static.com/userfiles/2315/image/House_Drawing.jpg" width="288" height="175" alt="House Drawing" title="House Drawing" style="margin: 4px; border: 2px solid black; float: right;" />More buyers than sellers currently.
Money is cheap so buying power is heightened. People are choosing to live in the Central Vancouver Island region more than ever. Nanaimo just passed 100,000 residents to begin 2021.
Typically we see the real estate markets in this region hit stride by mid-January.
This means pent-up buyer demand from the quieter Christmas break is met by homeowners supplying the market with homes to sell.
Inventory levels for single family dwellings (SFD) were at 110 on December 31, 2020 - literally half the number of homes available at the same time in 2019. On January 31, 2021, SFD dropped to 108. Interest rates also stayed low, adding fuel to the overheated December/January sales. Many homes are seeing multiple offers with consistent selling prices well above the list price.
If the inventory remains at this historic low, then the bidding war frenzy will remain for a period of time, perhaps into Spring. Like a freighter on the high seas, markets do not change course quickly.
With almost 30 years of experience selling homes in this market area, I have seen some strong seller's market conditions previously. With these low rates, the number of multiple offers and selling prices increasingly above the list price is unprecedented and likely unsustainable.
Here is my prediction for 2021:
Two factors to consider first: currently homeowners are either 1) reluctant to list their home as they are not seeing anything to buy or 2) continuing to remain home and choosing not to have buyers come through their home in the pandemic.
As we see vaccinations roll out in the latter half of 2021 and people grow more comfortable venturing out as the health crisis subsides, more people will list their homes. With more options come more listings and so goes the upward inventory cycle.
The Spring market feels like it is getting traction and this will add additional inventory as we approach March and April.
National economic forecasts predict a growing economy by the end of the year as well.
While I do not see prices dropping, I see a balancing of the market away from the extra-strong seller's market to a plateauing, sustainable seller's market - fewer multiple offers, more choice for buyers. Low rates will see to this part for the foreseeable future.
Our net inward migration of people choosing to live on the Island and away from crowded metropolitan centers (crowded elevators in tall buildings come to mind) and home owners ability to work from home, will also contribute to the seller's market conditions also.
A seller's market for the balance of 2021 with prices plateauing by late Spring/early Summer.2021-02-18T16:50:00-07:002021-07-14T07:49:29-07:00Rob Greytag:robgrey.com,2012-09-20:10528Strong December Home Sales Close Out an Unprecedented Year BCREA 2020 Report Press Release For immediate release
Strong December Home Sales Close Out an Unprecedented Year
Vancouver, BC – January 13, 2021. The British Columbia Real Estate Association (BCREA) reports that a total of 93,953 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in 2020, an increase of 21.5 per cent from the 77,350 units sold in 2019. The annual average MLS® residential price in BC was $782,027, an 11.7 per cent increase from $700,369 recorded the previous year. Total sales dollar volume was $73.5 billion, a 35.6 per cent increase from 2019.
<img src="https://assets.site-static.com/userfiles/2315/image/BCREA_Stats%202.jpg" width="500" height="381" alt="BCREA Stats" title="BCREA Stats" />
“Housing markets across the province staged a remarkable recovery during the COVID-19 pandemic and recession,” said BCREA Chief Economist Brendon Ogmundson. “We expect considerable momentum heading into 2021.”
A total of 8,268 MLS® residential unit sales were recorded across the province in December, a record for the month and up 57.8 per cent from December 2019. The average MLS® residential price in BC was $847,600, an increase of 12.5 per cent from December 2019. Total sales dollar volume was $7 billion, a 77.5 per cent increase year-over-year.
“While 2021 is expected to get off to a roaring start, the level of supply in the market is near a record low,” added Ogmundson. “That will likely translate to considerable pressure on prices until listings pick-up.”
Total active residential listings were down 16.1 per cent to 20,725 units in December.2021-01-13T09:04:00-07:002021-01-13T09:16:58-07:00Rob Greytag:robgrey.com,2012-09-20:10514Thinking of Selling in Early 2021? We can help
Selling or Buying in 2021? We can help
<img src="https://appv2.ixactcontact.com/iXactAccountContent/CntfeONt/Images/REaltor%20Question%20Image.jpg" alt="" width="284" />
Are you thinking of selling in 2021? What steps do you need to take to get your home ready? What value do you feel your home is worth? What types of homes await you if you sell?
I help answer all of these questions when we meet to discuss your interest in selling.
I believe in the first few months of 2021 we will continue to see strong market conditions. If you are thinking of selling then capitalize on higher prices and sell ahead of the seasonal inventory increase. Sell while supply is low and demand is high.
I am booking listing appointments now to help clients prepare to sell. This is a complimentary valuation.
Email: <a href="mailto:rob@robgrey.com">rob@robgrey.com</a> or Call/Text: 250-755-9974.
Do you want an online price a little quicker?? Click to <a href="https://appv2.ixactcontact.com/www.sellwithRobGrey.com" target="_blank">www.sellwithRobGrey.com</a> for an online value. I will email you a comprehensive market valuation. All inquiries are confidential. I may need some extra information at time of pricing and will outline accordingly in response.
We also value referrals if you know someone thinking of buying or selling. For buying questions, we are available to help too:
heather@heatherrowland.ca or text/call 250-802-5135
josh@robgrey.com or text/call 250-327-9841
2021-01-11T09:57:00-07:002021-01-11T10:07:53-07:00Rob Greytag:robgrey.com,2012-09-20:10043Canadian Housing Market Snapshot<img src="https://assets.site-static.com/userfiles/2315/image/Canadian_Market_Snapshot.jpg" width="798" height="886" />A quick look at the Canadian markets.2020-12-21T11:31:00-07:002021-01-11T09:57:12-07:00Rob Greytag:robgrey.com,2012-09-20:9907Selling Your Home in the Age of Covid<img src="https://assets.site-static.com/userfiles/2315/image/House_with_stethoscope.jpg" width="500" height="281" alt="House with Steth" title="House with Steth" style="margin: 4px; border: 2px solid black; float: right;" />
Real Estate Services are an essential service. WorkSafe BC, the BC Real Estate Association, Vancouver Island Real Estate Board, and Re/Max of Nanaimo have all contributed to safety guidelines and safe listing and showing practices among REALTORS®.
If you list your home, here are the steps we take to ensure your safety in selling:
Marketing - give prospective buyers as much information as possible before the showing including
3D Interactive tour of the home (Matterport) – closest thing to viewing without being there in person
Video of the home including Drone’s Eye view of the neighbourhood and yard
Photos – between 30 and 70 still photos, depending on the size of the home
Illustrative Floor Plans to understand the layout, direction and flow of the home
We provide an in-depth writeup to ensure the non-visual aspects are highlighted
The purpose of the extensive showcasing of your home is to minimize unnecessary showings and attract only serious buyers who have reviewed the presentation of your home ahead of looking.
Ensuring REALTORS® and buyers wear masks and hand-sanitize immediately prior to entering the home for a viewing is important. Sellers are encouraged to have sanitizer at the door upon entry, also. In all correspondence between REALTORS®, safety measures are emphasized.
Qualifying Buyers - many of these steps are conventional steps ahead of a showing, but REALTORS® doubled down to eliminate frivolous showing activity:
Confirming a buyer has not been exposed or quarantined recently due to COVID-19 or traveled to other areas where outbreaks exist;
Ensuring the party-size viewing the home is only the buying party;
Ensuring a buyer is ready to buy:
Prequalification through a financial institution
Deposit and Down payment funds are in place
Encouraging buyers to do as much preliminary work on a specific listing/home ahead of viewing including
drive-by’s
review of the marketing materials available (3D tours, videos)
receipt of supplemental information such as property disclosure statements which may contain information that affects their decision to buy.
Our professional organizations, BCREA and VIREB, send out regular bulletins with tips and reminders every week to ensure the highest standards are met for the process of buying and selling homes. To date REALTORS® continue to do their part to safeguard their communities.
If you have questions about selling, please feel free to contact me any time.
<a href="https://www.robgrey.com/sellers/" target="_blank">Click this link to message me</a>, email me (rob@robgrey.com) or call 250-755-9974.2020-12-11T17:18:00-07:002020-12-21T11:36:43-07:00Rob Greytag:robgrey.com,2012-09-20:99063 Important Things to Know Ahead of SellingKnowing all the facts and steps ahead of listing your home results in a <img src="https://assets.site-static.com/userfiles/2315/image/Scratch_Pad.jpg" width="399" height="518" alt="Scratch Pad" title="Scratch Pad" style="float: right; margin: 4px; border: 2px solid black;" />successful sale. If selling in 2021 is part of your plan, then this is a good time to have a conversation about getting your home ready to sell. A complete outline of getting ready to sell includes some key points. Here are the 3 most important:
Your Home's Value
The value of your home is obviously paramount. While this is the focus of our initial meeting, the local market is so dynamic currently, you will hear me say “let’s put an asterisk next to that price as I want the opportunity to revise as we get closer to listing your home!” The home’s value today may not be applicable in 3 weeks or 3 months. I want the opportunity to revise if I continue to see the upward pressure on prices.
Setting the Stage
Setting the stage to showcase your home is almost as important as pricing. Statistics clearly show staged homes sell for money and sell quicker. Do you want a quick sale? If we optimize the value through a strategic plan, which includes staging, it usually means a quicker sale. Getting your home sold sets you up to make concrete decisions on your next steps. Knowing how much equity you have to work with for your next purchase or life step is crucial.
To paint or not to paint? I walk you through how to stage your home to get maximum value. This doesn't always include spending money to get ready. We need to talk about this as part of the process though and weigh the return on investment.
Avoiding Pitfalls Ahead of Selling
We decided on a good price and outlined the steps to stage your home. What else do we need to do?
Poor outcomes in home inspections, for example, upset sales, sellers, and buyers alike and are a major source of stress.
Many of you have heard me say “homes don’t have a lot of moving parts” yet lots of things can go wrong. The primary areas which trip up sales are crawl spaces and attics, areas you do not frequent and where small issues can become expensive fixes.
Lots of hidden items get in the way of a sale and can be anticipated ahead of selling. I know my way around these issues and will advise accordingly.
Candid discussions to minimize problems and optimize value is what you get with my 29+ years of experience and vast number of sales. I estimate I have participated in over 2000 home inspections as well.
I am inviting you to contact me now to begin the process. <a href="https://www.robgrey.com/sellers/" target="_blank">Click this link to message me</a>, email me (rob@robgrey.com) or call 250-755-99742020-12-11T16:48:00-07:002020-12-11T17:16:58-07:00Rob Greytag:robgrey.com,2012-09-20:9818Market Update for November 30, 2020 - Inventories at historic lows<img src="https://assets.site-static.com/userfiles/2315/image/November_Average_Price.jpg" width="408" height="371" style="margin: 6px 4px; border: 2px solid black; float: left;" />
November sales in the Nanaimo market area followed a typical winter-like path with the number of single family homes dropping from 159 in September and 155 in October to 129 single family home sales in November. This is contrasted by two factors: first, the average price jumped from $603,000 to just over $611,000 in one month and the inventories dropped to unprecedented low of 144 single family homes for sale by November 30. Available homes for sale and overall sales typically begin their descent around this time each year but 2020 is unlike any other year and so we will continue to watch closely.
Multiple offers are common across most market segments and property types; in the coveted $450,000 to $600,000 range, I have seen as many as 11 or 12 offers at a time on a single listing, with some selling prices reaching more than $40,000 over list price. This is not on every listing but one should expect, if you are reasonably priced within the context of this busy upward market, to have a successful outcome.
Low rates and inventories are fueling this market despite the backdrop of worrisome economic signs. As we enter the new year, inventory levels will be the key factor to watch for pricing. Rates will be low for the foreseeable future. Obviously, I am not an economist, but I feel national governments, especially during the massive financial support for people and businesses, cannot afford to see interest rates rise as their debt levels may not sustain higher borrowing costs.2020-12-02T12:43:00-07:002020-12-02T13:03:35-07:00Rob Greytag:robgrey.com,2012-09-20:9232Market Update for October 31, 2020 - Prices Likely Heading Higher
<img src="https://assets.site-static.com/userfiles/2315/image/Blog_Chart.jpg" width="355" height="221" alt="Statistical Charts" title="Statistical Charts" style="margin: 3px 4px; float: right;" />Our local market has broken a new average price point: $600,000! Single family sales in October, 2020, were brisk, particularly in the first half of the month. The average selling price was $602,905.
The pattern for pushing prices past $600,000 rests primarily on two facts - super low interest rates and super low inventories.
Inventory levels are down 39% from the same period as last year. In 2020, as of October 31, only 210 homes are actively listed, a historic low. Some of these homes may also be under contract so the true number may be lower. Inventory levels between 2017 and 2019 ranged between 301 single family dwellings (SFD) and 345 SFD. These were low based on the trends of the last 20 years.
In 2010, for example, the number of homes for sale was 603; this reflected a Post-Financial Crisis period when prices dropped, foreclosures soared, and buyers had abundant homes from which to choose, forcing sellers to adjust prices downwardly to compete to attract the few buyers in the local market place.
Note from the chart the number of sales ranged between 102 and 128 between '17 and '19. In 2010, only 75 sales; this year October had 156 sales - double 2010 sales and 50% higher than 2019.
In 2000, the number of homes for sale was 495, almost 2.5 times the October, 2020, inventory.
We are seeing highest activity between $450,000 and $700,000; competing offers are common and writing strategically smart offers is advised. I would be happy to explain what a strategically smart offer looks like - call or email me.
The other major point is interest rates: you can get a 1.79%, 5 year term from a lender. In buying my first home in 1988, my father told me to grab the rate offered by the bank - 11.75%. Of course he witnessed the 20+% rates of the early '80s.
Moving forward, I believe the rates will stay low for the foreseeable future; if inventory levels continue to stay low, interest in the central Island continues to remain high, and our prices continue to appear attractive to buyers from the larger markets of Victoria and Vancouver/Lower Mainland, then we will likely continue to see prices climb higher into the Spring market.
2020-11-16T17:58:00-07:002020-11-16T18:15:45-07:00Rob Greytag:robgrey.com,2012-09-20:8449Staging your Home to Sell<img src="https://assets.site-static.com/userfiles/2315/image/Staged_Home.jpg" width="2560" height="1706" />
Staging - It's a FACT!
Staged homes:
Sell faster
Sell for more money
Show better in photos and marketing promotions
Attract more buyers, and more offers
Eliminate buyers chipping away at the 'asking price'
The buyer feels secure knowing their best investment is a staged property and provide you, the seller with the assurance you secured the best possible deal! Today's buyers are different to those of yester-year. The average buyer is 32 vs. average seller at 57 - the younger generation are less inclined and have less time to want to renovate a house after they move in. A recent study revealed buyers are willing to pay a premium to have a house move in ready. They want to move in Saturday and be entertaining Sunday.
Courtesy of the Canadian Staging Professionals website
TALK TO ROB GREY ABOUT GETTING YOUR HOME STAGED BEFORE YOU SELL.
By <a href="http://www.remonline.com/author/ChristineRae/">Christine Rae</a> President of Canadian Staging Professionals
Buyers have choices. They make decisions about a property within a blink of an eye. Here are ten overlooked tips for getting a property sold.
1. Don't get personal
Whether working with a professional stager or going it alone, cut all emotional ties. Visit each room, remember the memories and then pack the sentimentality away. It clouds judgement. Don't look at your house from the perspective of it being yours, or this is who we are - buyers aren't interested. Remove and store as many personal items as possible including all family photos, certificates, diplomas and medicine.
2. Pack and store/dispose of two-thirds of every closet and cupboard
It is a great time to start deciding what you want to keep/donate/discard. Organized storage space is one of the most frequently requested interior features.
3. First impressions are the only ones that count
Buyers have choices. They make decisions about a property within a blink of an eye. Wherever the eye rests the sale begins.
4. Understand staging is about condition more than décor
Sure the house has to look and feel good, but remember buyers are savvy - they will deduct from the offer (if they make an offer) their own perceived value for deferred maintenance. So repair anything that needs it, replace any fixtures more than eight years old and then clean like your life depends on it (your equity will). Pack and store (off property) anything you won't use in the next two or three months. Remember, buyers are buying their new house, not your old one.
5. Update the kitchen
This is the most important room in the house. If buyers fall in love here they will compromise anything on their "must have" list when the kitchen exceeds expectations.
6. Keep all bedrooms gender-neutral
Including kids' rooms and the master. Don't think, "Oh, they can make the mental shift." They can't, won't and don't. You have a three-minute opportunity to get this house sold - why would you jeopardize a single second?
7. Bathrooms are the second most important room in the house
So if you have money, upgrade what you can, at least in the main bath. Change the old cabinet-style sink for a pedestal or furniture sink and remember storage is vital. In the extra space gleaned, consider installing an organised linen closet with deep pull-out drawers.
8. Odour and allergens alert!
During the past 50 years, the rise in prevalence of allergic diseases has increased. Worldwide, sensitization rates to one or more common allergens are approaching 50 per cent. You don't know whether the future buyer is one of them. So, know when you live in your house you will not be able to smell what others do. Assume the worst and prepare. The best option is no smells at all. Open windows, don't use household or garden chemical products. If you have pets, remove them from the property for the duration of the sales process (spa, friend, family).
9. Lighting
Make sure every light bulb is energy efficient and at the highest wattage the fixture will take. Clean all the fixtures for maximum sparkle.
10. Seventy-four per cent of prospective buyers will drive by your property
Before they even think about viewing it and half of them will do it at night. What that means to you is considerable thought going into curb appeal. Never underestimate its power. Curb appeal done well is like gift wrapping on a present. The National Association of Realtors says, "Great curb appeal sells more than half of all houses that go on the market."
Outdoor lighting is vital. Light up the porch and be sure the numbers of the house are illuminated and visible from the street. Consider lighting pathways and spotlighting a feature of the property - a dramatic tree or the front façade. Landscape experts agree there is 100 per cent ROI for money invested in front, back and side yards. Curb appeal wraps around to resort/lifestyle living in the backyard too. It is one of the most undervalued aspects of market preparedness that can actually add dollars to your bottom line. Ninety five per cent of people surveyed said outdoor living amenities are vital. Outdoor allure also extends to balconies, decks and patios.
Give people what they least expect; they don't know they want it but when they see it they can't resist. The more you can accommodate that, the easier it is to sell.
<a href="http://www.soldonstaging.ca/">Local Stager? Vicky Lerch at SOLD ON STAGING. Excellent candid advice. Proven track record.</a>
2020-09-13T14:36:00-07:002020-09-13T14:55:31-07:00Rob Greytag:robgrey.com,2012-09-20:8282Markets Continue Robust ActivitySingle Family Sales continued their brisk activity in August with 127 homes selling, albeit down from the 179 homes which sold in July, 2020, but significantly higher than the 91 home sales in August, 2019. Single family average prices crept up 4.6% to $586,642. While homes appear to be selling quickly (in some case hours, not just days), the average length a home sits on the market (called DOM or Days on Market) is 36 versus 32 last year - slightly longer.
In the strata market segment, sales volumes are not as nearly as fast-paced with 70 sales between apartment, patio, and town homes selling in August this year, up 20% from last year. Condo Apartments are taking longer to sell at 51 DOM, almost 50% longer than the same period in 2019, patio and town homes reflect single family stats more closely with the average number of days to sell at 34 DOM (versus 29 in '19).
Land or lot sales tell a story as well. Canada Mortgage and Housing Corporation predicted new home construction would drop in 2020 but see a rebound in 2021. The number of building lots which have sold in the last 12 months is 150 versus 86 between September 2018 and August 2019, perhaps validating CMHC's prediction as builders gather inventory to begin the process of construction. The average lot price dropped by 7.75% over this period also (average price in 2020: $319,052; median price $270,000); this change was obviously a good opportunity for local builders to buy vacant land and begin building again heading into the late 2020/early 2021 markets. Supply chains are disrupted due to COVID-19 and one result is a recent spike in the cost of wood framing materials.
The construction industry continues to be one of the drivers of our local economy. Support your local builder!!
Builders and home buyers alike continue to take advantage of low interest rates: one local lender is quoting rates of 1.94% for a 5 year term. Together with record low inventories, this market looks promising for the short to medium term.
2020-09-11T16:34:00-07:002020-09-11T16:48:38-07:00Rob Greytag:robgrey.com,2012-09-20:8074The Late Spring/Summer Rebound<img src="https://assets.site-static.com/userfiles/2315/image/July_Sales_Stats.jpg" width="770" height="408" />Sales Volumes in July were recently revised. With approximately 180 single family home sales in July, this is reflective of volumes between 2003 and 2007 and again between 2015 and 2017, very busy market periods.
Average prices for single family, year over year, increased by 10.23% to $614,860; the median selling price was $595,800.
Sellers were averaging 99.25% of list price to selling price. Average days on market in July for a listing were 40 days; last year in July was 34 days on market (DOM).
The active listing inventory, the underlying source of this busy market, is 283 homes for sale. As an example of inventory levels, this is less than half the number of homes for sale in early 2009, after the financial crisis.2020-08-21T11:19:00-07:002020-08-21T11:34:07-07:00Rob Greytag:robgrey.com,2012-09-20:7875Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/2315/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2020-07-16T16:16:00-07:002020-07-16T16:17:51-07:00Rob Greytag:robgrey.com,2012-09-20:7873Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/2315/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2020-07-16T16:16:00-07:002020-07-16T16:18:00-07:00Rob Greytag:robgrey.com,2012-09-20:7874Why You Should Consider Selling in the Winter<img src="https://assets.site-static.com/userfiles/2315/image/selling-in-the-winter-attracts-serious-buyers.jpg" alt="Selling In Winter Attracts Serious Buyers" title="Selling In Winter Attracts Serious Buyers" height="410" width="750" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2020-07-16T16:16:00-07:002020-07-16T16:18:03-07:00Rob Grey