The impact of ‘international money’
We are constantly researching how the financial world can have an impact on the real estate market, and we use a number of sources…among them The Financial Times, Wall Street Journal and Economist Magazine. We have found comparisons between cities (or countries) around the world with regards to economies, demographics and education.And yes, real estate.
Almost every week, The Financial Times compares a couple of markets and one thing has become clear: What’s happening in the Vancouver real estate market mirrors what’s
appening in a number of cities around the world. And what happened is there has been a slowdown of global capital in London, and New York…and other major cities, including Vancouver. This includes a sales curve and a price curve, and if you put them on top of each other for all the different cities, the story is close to the same.So the heart of the issue is that the international money is not flowing into real estate as it once was. If you believe you need that global money to sell your property, it likely won’t happen as quickly as once it did. With global investments, it’s critical to understand what’s happening because the ripple effect is being felt everywhere, not just Vancouver.
And things can change quickly.
There is no research to support this, at least not yet, but one example is the current unrest in Hong Kong. If the uncertainty of how Mainland China is going to affect the lives of Hong Kong residents, that may convince them to move all or some of their capital to another part of the world. The same philosophy could apply to Canadians who currently live and work in Hong Kong if they decide to return to Canada.
So many factors can go into the match of “global money” and “real estate” and it’s vital to understand it. If you need a little help in understanding this, call and we’ll do our best to explain it.
Affordability drives real estate market
As you have seen from our recent newsletters, we believe that the key word for sales in the current real estate climate is “affordable.” If a property is affordable it is going to sell. If a property is affordable, it may even generate multiple offers. That’s what happened several weeks ago when there were EIGHT
offers on a house in West Vancouver once it became affordable. We know because one of the offers was ours, on behalf of a prospective buyer and we know it happened because the property was affordable. There is a pent-up demand for property to be priced to sell, even though it often appears there are no buyers. There are. They are waiting.
Affordability is different for everybody, naturally, and trying to find it is what people selling their home want to know because — if they listen to what we believe — the buyers are waiting.
Who are those buyers, and what’s affordability?
They could be buyers who have equity:
Affordability is different for everybody, naturally, and trying to find it is what people selling their home want to know because — if they listen to what we believe — the buyers are waiting.
Who are those buyers, and what’s affordability?
They could be buyers who have equity:
a) accumulated from a previous real estate transaction
b) from family resources
c) earned from income that enables them to buy into this market.
Determining what a house will sell for is a function of analysis, target marketing and negotiating. That is what you can expect your realtor to do — analyze recent selling prices of properties comparable to yours in the same area, use proper marketing strategies to promote your listing and, with that information, negotiate so that you receive the best value for your home.
What we do is tactical. The market determines, with these strategies implemented, the top price.
We feature one in every newsletter and all of them are posted at nexusrealtycorp.com.
Here is this month’s client feature — from Patsi and Bob Minnes of West Vancouver.
Determining what a house will sell for is a function of analysis, target marketing and negotiating. That is what you can expect your realtor to do — analyze recent selling prices of properties comparable to yours in the same area, use proper marketing strategies to promote your listing and, with that information, negotiate so that you receive the best value for your home.
What we do is tactical. The market determines, with these strategies implemented, the top price.
Testimonial: ‘Sign up with Nexus as soon as you can…”
As people in small — or even big — business know, the most effective way to gain the confidence of the people you serve is “word-of-mouth.” The testimonials we provide in our newsletter and on our website are an extension of word-of-mouth endorsements. They are the exact words of our clients.We feature one in every newsletter and all of them are posted at nexusrealtycorp.com.
Here is this month’s client feature — from Patsi and Bob Minnes of West Vancouver.
“I’d tell anyone to sign up with Nexus as soon as you can, to be sure they have time to take care of you,” Patsi says. “We NEVER felt they were too busy to look after us. We just 
had such a good feeling about them. Our daughter and her family know them from church. She said they were great, and hoped we’d like working with them…and we REALLY did!
had such a good feeling about them. Our daughter and her family know them from church. She said they were great, and hoped we’d like working with them…and we REALLY did! “Jennifer and Dale went out of their way, in every possible way. After we decided on this side of the water, Jennifer spent hours driving me around the whole North Shore. She was great in pointing out the advantages of all the different areas. We’d never lived here, so it was all new. My husband said, if you love it, it’s good enough for me. They were very patient, very pleasant, and always on time!
“My husband was in real estate for 35 years, and we’ve purchased at least six times in 54 years, yet we were constantly amazed at the depth of their knowledge, as well as their patience. For example, Dale knew someone in one neighbourhood where we were looking, and he even checked with them for some extra knowledge. We didn’t ever NOT feel confident with them. We have a dog, so we looked at lots and lots of places, because of strata rules about pets.
“Jennifer is so thorough…she even went to the trouble of having someone open and close the garage door, so we could be sure there was no problem with noise from the door going up and down.
“We were SO impressed with the clever way they approached negotiating. Dale realized quickly how to get the best value for our money, and he was very strategic in the negotiations. We’ve lived with market conditions, because my husband did it for a living, and in our discussions about it with Nexus we all agreed. We purchased at a very nice price.”
“We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver,” said the REBGV in its monthly news release. “Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.”
Consequently, the monthly statistics look like this:
“My husband was in real estate for 35 years, and we’ve purchased at least six times in 54 years, yet we were constantly amazed at the depth of their knowledge, as well as their patience. For example, Dale knew someone in one neighbourhood where we were looking, and he even checked with them for some extra knowledge. We didn’t ever NOT feel confident with them. We have a dog, so we looked at lots and lots of places, because of strata rules about pets.
“Jennifer is so thorough…she even went to the trouble of having someone open and close the garage door, so we could be sure there was no problem with noise from the door going up and down.
“We were SO impressed with the clever way they approached negotiating. Dale realized quickly how to get the best value for our money, and he was very strategic in the negotiations. We’ve lived with market conditions, because my husband did it for a living, and in our discussions about it with Nexus we all agreed. We purchased at a very nice price.”
Sellers, buyers have an ‘expectation gap’
The latest report from the Real Estate Board of Greater Vancouver is in and it highlights the growing gap between properties for sale and properties sold. It also includes an explanation why that’s happening.“We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver,” said the REBGV in its monthly news release. “Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.”
Consequently, the monthly statistics look like this: • June 2019 residential home sales were down 14.4 per cent compared to June 2018, and 21.3 per cent compared to May 2019.
• Last month was the lowest June for sales since 2000, and 34.7 per cent below the 10-year average.
• Total number of homes listed with MLS® is up 25.3 per cent versus June 2018 and 1.9 per cent versus May 2019.
Once again, proper pricing is the most important issue. Sellers need to work with realtors who help price their homes for the current market conditions, whatever they may be. That requires extensive research on the part of the realtor to determine who the target buyer is for each home, and to analyze comparable and recent sales in the buyer’s “micro” market.
This drop in sales was more pronounced in Greater Vancouver apartments in June — down 24.1 per cent from the same month last year, compared to a drop of 2.6 per cent for detached homes and 6.9 per cent for attached homes.
And the composite sales-to-active listings ratio for June was 13.9 per cent — downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period. In June, it was 11.4 per cent for detached homes, 15.8 per cent for townhomes and 15.7 per cent for apartments.
The REBGV also pointed out that for the first time in two years the Benchmark Price for all properties is below $1 million, at $998,700.
Bridge to the piers of Canada Place in Burrard Inlet. They represent 15 of the world’s cruise lines and provide a chance to see ships of different styles and sizes from properties with a view of the waters of Burrard Inlet (click on each ship for more details).
• Last month was the lowest June for sales since 2000, and 34.7 per cent below the 10-year average.
• Total number of homes listed with MLS® is up 25.3 per cent versus June 2018 and 1.9 per cent versus May 2019.
Once again, proper pricing is the most important issue. Sellers need to work with realtors who help price their homes for the current market conditions, whatever they may be. That requires extensive research on the part of the realtor to determine who the target buyer is for each home, and to analyze comparable and recent sales in the buyer’s “micro” market.
This drop in sales was more pronounced in Greater Vancouver apartments in June — down 24.1 per cent from the same month last year, compared to a drop of 2.6 per cent for detached homes and 6.9 per cent for attached homes.
And the composite sales-to-active listings ratio for June was 13.9 per cent — downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period. In June, it was 11.4 per cent for detached homes, 15.8 per cent for townhomes and 15.7 per cent for apartments.
The REBGV also pointed out that for the first time in two years the Benchmark Price for all properties is below $1 million, at $998,700.
City with a view: Which cruise ship is that?
Like everything else tourism, this is the peak of the cruise-ship season in Vancouver. During the summer in the city, 104 cruise ships will come and go under the Lion’s GateBridge to the piers of Canada Place in Burrard Inlet. They represent 15 of the world’s cruise lines and provide a chance to see ships of different styles and sizes from properties with a view of the waters of Burrard Inlet (click on each ship for more details). This summer list, available on the Nexus website, includes arrival and departure times for each ship and is updated regularly. And if your view is from a property you’re buying, selling or just visiting, try and be there when the ships are sailing.
You’ll enjoy the scenery and cruise ships from view property.
You’ll enjoy the scenery and cruise ships from view property.
That according to Airbnb, the online home-sharing business remitted $14 million
in provincial sales tax to British Columbia in the first six months of collecting it,
almost twice the amount estimated when the tax agreement was signed last year?
Real Estate Monthly Statistics
The following statistics for West Vancouver, North Vancouver, Vancouver West and Vancouver East compare June 2019 to June 2018
(note: sales refers to number of sales, not to sale prices).
Benchmark Price: Estimated sale price of a benchmark property. Benchmarks represent a typical property within each market.
To see more information on local stats, please CLICK HERE.
