After over twelve years of selling real estate in Nanaimo I can only call it one word in this market: MAYHEM! It's easy to get carried away by the hype when a market is as hot as the one we have witnessed in Nanaimo in 2016.
Market values over a 12 month period from September 2015 are up 17.31% on single family homes in Nanaimo! The inventory shortage (see my last post) has resulted in multiple offers and bidding war scenarios being seen in unprecedented levels in Nanaimo. The frenzy has spread to condos which have been relatively flat in terms of growth for several years but have now seen an overall growth by 13.16% over 12 months. See VIREB's up to date September stats here
Town homes and condo units sold has drastically increased over last year as a direct result of this single family mayhem! Isolated pockets of the city are seeing 20 and even 30% growth in overall market values in a period of 12 months!
It's easy to see why many sellers are catching the fever, especially with many stories of wild over list price sale results circulating amongst homeowners. It is of paramount importance to remain objective and rational when pricing your home. To do this one must put themselves in the mind of the average buyer, and look to the facts in a recent market sampling. We are often very subjective or emotional when it comes to our dwellings. This will not help us decipher the true market value of our home.
- What will the average person think my home is worth?
- What other listings will I be competing with?
- What homes similar to mine have sold nearby recently?
- What economic or legislative factors are on the immediate horizon? (Think 15% foreign buyer tax in Vancouver)
Despite the rapid overall growth of the housing market values, and unit sales growth, many factors contribute to the properties seeing these gains and not every property will have the same success, or ease of sale.
Location, dwelling layout and features, marketing quality and effort, and agent skill are all still just as relevant in a hot sellers market. If any of these factors are not in line with other properties in the market, there is an increased chance of the subject property sitting on the market.
When a property is improperly priced based on market hype, it runs the risk of running into objective agents and their buyers. This is when such properties languish on the market and can even develop a stigma if it sits too long. "Why is this property not moving in this hot market?" Price then becomes the primary focus. "Is it worth it" over "Do I like it?" Getting potential buyers emotionally invested in a property is one way of achieving your goals at the negotiation table.
Many sales representatives know exactly how to steer their clients in a hot market, and can spot over valued homes and advise their clients accordingly. Another risk of pricing too high is missing a large number of buyers who would be interested in a property at the top of their budget if the property is priced accurately.
On the other hand, pricing too low in a hot sellers market means leaving money on the table. While its relatively easy for a skilled agent to identify an overpriced property, skilled representatives can also identify great or below market value. There is a fine balance when pricing your home in hot sellers markets, and that is why I look to continue to provide my expertise and determination for buyers and sellers in this extremely fast paced market. Let me be the difference in your corner! Contact me anytime, and we can get to work in your quest to buy or sell.
All My Best,