The Vancouver market and surrounding areas have seen a dramatic shift in market conditions over the past few months. Sales have dropped by almost 39% this month, partially due to a series of government interventions. Conversations on “affordable housing” are on the rise and buyers and sellers are in a holding pattern, waiting to see how things will change.
While the conditions in Vancouver are unique, the rest of Canada is seeing shifts in their market places as well. The Calgary market continues to cool as a result of the oil industry there. The Toronto market has seen a slight increase in price this month, somewhat due to the new 15% tax in Vancouver as more buyers purchase in Toronto. As other markets shift, Toronto may soften a bit over time.
Over 50% of agents have only seen good market conditions and many agents are worried about where we’re heading. You can’t do anything to change the market. It’s time to face reality as it is, not as you wish it were.
A surfer can’t control the wave, but she can react in the right way to enjoy the ride.
While many agents will bury their head in the sand, a great agent will wake up and work harder and smarter. They will ask, “What do I need to be good at now?”
So how do you update your skills to navigate and capitalize on this change?
Buyers seem to have a “wait and see” attitude right now. They are unsure of where the market is heading and need education and advice more than ever. Right now, they will need more handholding and a lot of honest conversations.
Start by educating yourself so you can educate your buyers. Look at the numbers in the specific neighbourhoods you work in and be able to add insight to that information. Those who add insight are seen as the experts in their market.
Of course there are positives to communicate to your clients, such as more choice in properties and less competition. When communicating with your buyers, always go back to the motivation behind why they’re moving. That’s going to determine everything.
2284 houses sold in October in Vancouver, so houses are still selling. How do you make sure you are the one selling them?
Use inclusive dialog with your sellers – phrases like, “This is what we need to do to sell your house.” Well priced homes, proper marketing strategies and managed client expectations are key. Update your listing mastery skills in our RRi on Demand program in order to stand out to the competition.
Above all, remember that no matter what’s going on in any market, a house priced right will sell.
You are going to need to do more of the hard work to find motivated prospects. Start by picking up the phone. Give your entire database a call and let them know you’re there for them if they have questions about this shift. Explain the new mortgage rules, talk about the specifics in their particular market and how their home prices may have been affected and tell them your honest opinion about where the market is heading in your area. As the market shifts, your mindset will need to shift from prospecting to educating.
Use your knowledge, skills and experience to your advantage and get out there. Don’t be one of the agents with their head in the sand. Get out there, stand out above the crowd and keep selling houses.
Enjoy the ride.
It’s a beautiful life, make it count.