Why guys like me are staying put in this “crazy” Real Estate Market

Many are wondering why prices of detached homes in Metro Vancouver and the Fraser Valley have risen 28% to 30% over the past 6 months, since October 2015. Well, it may sound simple, but it’s a supply and demand market. Right now, there are many more people wanting to own detached homes than are willing to sell them.
As a middle aged boomer in my late 50’s who would love to capitalize on this rare real estate market windfall, here’s the sad truth. I’m stuck!
Sure the kids have grown up and left home and now the house and the yard are becoming a bit too big for our needs. But have you looked at the prices of townhouses lately? To me that’s the cruelest joke on us baby boomers yet. Why would a detached land owner like me, move into a strata property, so close to people I don’t know when the cost spread between detached homes and townhouses is so small. If you figure the average comfortable cost of living per family per year is say, $100,000, the savings incurred would evaporate within the first year.
My wife has another 5 years to retirement and I’m on the freedom 95 plan. She has an hour commute to her job in downtown Vancouver and we can’t move any further out right now. So we have two choices: a) take the pessimistic view, cash out and rent, while waiting for a doomsday apocalypse, or b) stay put and rest easy at night knowing we have a comfortable place to live of our own and an appreciating asset. We are going with option B.
But if you don’t have to stick around and would like a change of scenery, here’s 5 good reasons to sell right now:
1) You are retired and have been thinking of downsizing. While prices of detached homes have sky rocketed in the past 6 months, up 28% to 30% on average across Metro Vancouver and the Fraser Valley, townhouses have gone up a fraction of that and the spread has widened. Condo prices have remained relatively flat, so you’d do even better financially by moving into one of those.
2) You are retired or close to it and wish to move to the Island or the Okanagan. I envy you. Do it now!
3) You are a bit more than retired, you have been thinking of selling and going into an assisted living facility. Ponder no more, make the decision.
4) You have a job offer outside of Metro Vancouver & the Fraser Valley. Take it!
5) You can’t stand living with your life partner anymore. Here’s a chance to sell your property, split the windfall and each start a new life.
One thing I would not attempt in this market is to sell my existing detached home to buy another within the same area. You will most likely sell quickly and not be able to find another to suit you, unless you can afford to own two properties at the same time.
I’ve been helping folks buy and sell real estate for the past 24 years and you should always buy and sell for the right reasons, now more than ever.
If you have a good reason to sell, please give me a call, email or text me. I will give you the right advice at the right time. I would love to go to work on your behalf, when you are ready to make a move.

Ray Werger
Royal LePage West Real Estate Services
Fraser Valley Real Estate Board, Past President 2014
604-830-3557
www.bcrealestatesales.com
Vancouver, British Columbia, Canada
Protecting & Promoting the Interests of my Clients since 1992

http://www.realsatisfied.com/ray-werger

Mortgage rates are down and the local real estate market takes another hit. We are passing the mid-point of the year most homeowners at this point are very aware of the down turn we are experiencing in the local real estate market. Inventory has climbed and sales have fallen. Property values are headed down and as much as some would call it a balanced market, it’s more of a buyers’ market. Of course, there are few exceptions to this. Vancouver area homes sales posted their weakest June in almost twenty years. “We’re continuing to see an expectation gap between home buyers and sellers in Metro Vancouver,” said Ashley Smith, REBGV president. “Sellers are often trying to get yesterday’s values for their homes while buyers are taking a cautious, wait-and-see approach.” To take a closer look at the stats, click here Selling property in this market is challenging and requires a skillful realtor. Hard work often pays off, but in these conditions; it’s more about price and affordability. Buyers are taking advantage of these conditions and ‘low ball offers’ are becoming the norm. Sellers should prepare themselves and understand that it will likely take additional time to sell their home. When it comes to selling successfully there are few things that can help in delivering great results. Click here to ask me. Mortgage lending conditions are not much better. The good news is that interest rates have fallen since the beginning of the year and 5 year fixed is now as low as 2.74%. Most economists think fixed rates should hold steady and that we should see the prime lending rate move lower later this year. Borrowers looking to access these cheap rates should ensure they have all income taxes up to date and if you are self-employed ensure you have updated financial statements. This will help get you the answer you need quickly. Alternatively, if you need funds quickly and cannot meet the stringent lending criteria; then there are lots options but it comes at a higher cost. Mortgage rates: (certain conditions apply): Best 5 year fixed: 2.74% - insured Best 5 year fixed: 2.79% - uninsured Best Variable: Prime – 1% Best 10 year fixed: 3.44%