British Columbia’s real estate market has officially entered a new phase
Gone are the days of hyper-hot bidding wars and homes sold drastically over listing value. It’s time to accept, and even welcome in, a new stage: a more balanced market. This sentence might incite panic in some but the shift from a seller’s market to a more balanced market can benefit the industry overall.
In a balanced market, sellers and buyers are on more equal footing with supply and demand. While supply remains an ongoing concern, slight increases in active supply have partially brought on these more equitable market conditions. Interest rates, economic uncertainty and the amount of new housing construction have contributed to buyer behaviours that move away from the extremely competitive environment we’ve become accustomed to and toward more balanced conditions. Homes are beginning to sell at a price closer to the asking prices, and on a less frantic timeline. Buyers have more opportunities to view options, and sellers have the chance to do thorough due diligence. Ultimately, there’s a win-win situation to be found in a more sustainable matching of buyers and homes.
Photo credit: Canva
DEVELOPERS MUST INTENTIONALLY PREPARE FOR CHANGE
The reality of a shifting market means that developers must alter their expectations as the market changes. No longer can we assume that prices will always continue to elevate, and that projects will sell through all at once. The modus operandi of the past 18 months is no longer applicable. Overall, more thought and intention will need to be involved and applied at every step of a project. Developers must be strategic on when, and how, they release a project to market. After looking at the logistics of any financial requirements around a development, a plan to capitalize on strategic sales phasing should be considered. For example, a project might benefit from a phased sales tempo with specific targets on absorption and replenishing costs for each phase. Rather than hitting the market strong and all at once, they release the project over time against those specific targets to maintain attention and generate success.
Developers also get the opportunity to be more creative and intentional about product positioning. It’s key to highlight and showcase the specific consumer needs that each development fulfills – and to have accounted for those needs prior to beginning each build. Of course, pricing is a key driver of sales right now. The demand for housing has not changed, and the need for supply has not reduced, but the cost of homes is what is driving people away from buying. Inflation and interest rates mean that pricing must make sense for the buyer. Thinking strategically and creatively in the way of incentives for both realtors and buyers is necessary. For example, deposit structures on pre-sales may need to be creatively structured in a way that relieves some stress for buyers.
Photo credit: Canva
BUYERS EXPERIENCE MORE CHOICE AND LESS PANIC
If you’re a buyer right now, you might be looking at inflation, interest rates and housing supply with trepidation. Ultimately, a more balanced and stable market equates with less urgency and more options for the purchaser, which leads to a more positive buying experience. Buyers are benefiting from fewer offers and fewer bidding wars. There is more opportunity to talk over each purchase with a realtor and to put conditions for financing and inspection on your offer, with less fear that you’ll be beat out by offers with no subjects. As that competition slows, buyers generally benefit from having more products to choose from at a pace that provides more chances to review a purchase thoroughly.
While the white-hot market returns to a more equitable state after a particularly strong 18-month run, buyers and developers can identify the advantages of this new status quo. Purchases are less likely to be rescinded upon, particularly in pre-sales, and long-term home satisfaction is likely to be higher.
If you are considering selling or buying a property and need advice from a trusted real estate expert, please contact Geoff or call him at 604-313-7280
To view Geoff Jarman’s Listings CLICK HERE
The Vancouver International Jazz Festival is BC’s largest music festival.
It attracts close to 1800 artists and over half a million jazz enthusiasts.
The 2022 TD Vancouver International Jazz Festival returns to entirely in-person events after two years of COVID-19 event cancellations and programming changes. This summer, the festival takes place from Friday, June 24 to Sunday, July 3, 2022, with events and programming scheduled around the city.
Over the next 10 days, you will have the opportunity to see over 700 artists in 200 performances throughout the city.
About Coastal Jazz & Blues Society:
Founded in 1985 and incorporated in 1986, the Coastal Jazz & Blues Society is a community-based, not-for-profit, charitable arts organization that has worked diligently to establish Vancouver as a centre for the creation and exchange of sounds and ideas between local, national, and international music communities. The Society’s mission is to not only increase the appreciation of the music but to strengthen the arts community by developing special projects, artistic exchanges, partnerships, educational initiatives, community programs, and collaborations that further the art form. Ranked as British Columbia’s largest not-for-profit music presenter, The Coastal Jazz & Blues Society produces the annual TD Vancouver International Jazz Festival and year-round concerts and has a long-standing commitment to music education with the Sounds of Youth performance stage, workshops, children’s music programs, and more. The Society is proud to be a significant part of Vancouver’s and B.C.’s economic engine and tourism industry, attracting over half a million people to its annual festival and generating over $43 million in economic activity
Lucinda Williams Saturday, July 2 at 8:00 pm, Queen Elizabeth Theatre Three-time GRAMMY award-winning artist Lucinda Williams performs at the Queen Elizabeth Theatre (630 Hamilton Street, Vancouver) on Saturday, July 2nd at 8:00 pm
Photo Credit – Danny Clinch
“It’s all come full circle,” says three-time Grammy Award winner Lucinda Williams about her powerful new album, Good Souls Better Angels. After more than forty years of music making, the pioneering singer-songwriter returns to the gritty blues that first inspired her in the late 1970s, while also reuniting with Ray Kennedy, the co-producer of her game-changing 1998 album Car Wheels on a Gravel Road. The new songs hit all the deliciously dark Gothic notes the Louisiana-born storyteller is beloved for, tied together with themes of perseverance, resilience and ultimately, hope. “Drawing as much from punk as roadhouse blues, Lucinda Williams’ loud and unsparing new album is some of the heaviest, most inspiring music of her career” (Pitchfork).
For the festival schedule CLICK HERE
Also, Coastal Jazz & Blues Society today announced the schedule for the public workshops and the Anthem Sounds of Youth Stage schedule for high school bands from across the province. All public educational workshops and youth performances are free, with more details available at www.coastaljazz.ca.
“Every year, the top provincial high school bands and their teachers are invited to perform on the Anthem Sounds of Youth Stage in front of thousands of people at Robson Square,” says Nina Horvath, Executive Director, TD Vancouver International Jazz Festival.
“This event is always a crowd-pleaser; it’s amazing to think how this experience can direct a young musician’s career or musical pursuits.
” Free Public Workshops The TD Vancouver International Jazz Festival also offers free workshops and lectures for jazz fans and musicians to learn firsthand from some of our local and international performers.
For 2022, sessions are planned for Tom Lee Music Hall (728 Granville Street) and The Studio at the Roundhouse Community Centre (181 Roundhouse Mews).
Acclaimed international artists such as Amirtha Kidambi, Wayne Horvitz, Lisa Ullén, Dave Rempis, cross-Canada creative players Simon Angell and Lina Allemano, and local luminaries Aram Bajakian, André Lachance, Shruti Ramani, and Scott Verbeek will share candid stories and answer questions on all things music.
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