First of all I would like to wish you and your loved ones all the best for 2013! May it be full of happiness, success and most importantly health! 2012 has been an interesting year when it comes to real estate , we had an extremely busy start to the year were we saw most of the sales happen (January to May), prices rose, we saw multiple offers happen and everything was pointing to a busy real estate year, along came summer and the market started to slow down many sellers took their homes off the market rather than sell for a price significantly lower than their asking price and this has been the trend, we have seen a very minimal drop in prices; as many hope for a real estate meltdown similar to the USA most are coming to the realization that this will probably not happen and we have been experiencing a normal cyclical real estate slowdown.
WHAT TO EXPECT IN 2013?
Housing starts in Metro Vancouver are forecast to remain flat in 2013 — the CMHC numbers call for 19,000 housing starts in 2012 and 19,100 in 2013.
The average annual MLS price in Metro Vancouver is projected to end 2012 down 6.4 per cent to $730,000 and then drop a further 0.3 per cent in 2013 to $728,000 as people shift toward more moderately priced homes, including those in the Fraser Valley and show a preference for condominiums over single-family detached homes.
The number of sales in Metro Vancouver is forecast to end 2012 18 per cent lower than 2011, but then to increase 11 per cent in 2013, shifting the market back to balanced territory before the end of next year, the CMHC forecast says. A sales-to-new-listings ratio between 45 and 60 per cent is considered balanced, while a lower ratio represents a buyers’ market and a higher ratio represents a sellers’ market.
THE BEST TIME TO BUY IN 2013?
As uncertainty is still in the air many sellers that have been holding off to sell or have taken their property of the market will try to sell beginning of the year, I expect many sellers will potentially be a bit more reasonable when it comes to price so if you can benefit off a reasonable seller come January and February this could be the right time to still snatch a deal before the busy spring market.
THE BEST TIME TO SELL IN 2013?
It will be important to keep our eyes open on this one and I will be closely monitoring the signs of a market about to take on steam, if history repeats itself like it has done many times before and I compare this slow down similar to that of 2009 after the USA meltdown, we could potentially see a wave of buyers early in the year Feb – Mar , something to note in BC is that the HST will come back down in March this could be a psychological boost that could help buyers and sellers.
Regardless of what 2013 brings real estate wise remember that every situation is different and one must take advantage of the present as the future will always be UNCERTAIN.