Pricing for the Changing Market

2008/12/11 Originally published in the Vernon Morning Star.

You may be one of the many homeowners who have had their home on the market for several months and have yet to receive an offer. Or, perhaps you have received offers but they have been subject to the sale of the buyer's current home. Even though the buyer has listed their home on MLS they have not yet found their buyer. This is a repetitious scenario in our current marketplace.

The inventory of available properties has markedly increased compared to a year ago. So, we have entered a much more competitive market. The ratio of available homes versus the number of homes sold is clearly telling us it's a buyers market. For buyers this is good news. Mortgage rates remain favorably low and now some homes are being offered at prices lower than those of 2007. This is probably a good combination of factors if you are looking to buy.

The question is, "If I want to sell my home right now, what do I have to do to get it sold?"

Well, it's "All about the Money." If you are in a position where you can wait until prices recuperate, then wait you should. What we don't know is how long that waiting period will be. If you have your eye on a well priced home that you really want then waiting for prices to go back up will not serve you. That well priced home you want will likely be long gone. The only way you are likely to take advantage of that favorably priced home is to favorably price your existing home.

With the assistance of your Realtor©, carefully determine what prices were obtained in the last say, 60 days on homes that are a lot like yours. Take those sales figures very seriously. They show what recent buyers have truly been willing to pay. Establish your asking price based on that data.

So, when will the market settle out? This is anybody's guess. I'd like to think that it will rebound in the New Year. The Canadian and American elections are behind us. The Americans seem to feel very positive in their choice of Barack Obama. I think that if the Americans are feeling more optimism then that should translate into a less fear-based economy, soon. I hope I'm right. Real estate is much more fun when we are seeing prices rise or at least, hold their own.

2009 will be an interesting year, of that I am sure.

Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email or call 503-3755.

RE/MAX Vernon | 250.503.3755 | Toll free 1.888.503.3755 | 5603 - 27 ST | Vernon | BC | V1T 8Z5 | Canada

Market Information for Buyers and Sellers

Pricing for the Changing Market