Anthony Shephard - Feb 12, 2025 / 6:00 pm | Story: 533152
Photo: Contributed
The Canadian Press/ Jonathan Hayward
Back in the fall, I wrote about the real estate market and, of course, everyone is asking what is happening in the market now?
So, I thought it might be time to look again and see what has changed. Using the same data I took another snapshot of the numbers for one week and this is what I found. (Not including recreational properties).
The numbers aren’t perfect—one week is not a lot of data—but it definitely tells a story.
This analysis examines the dynamics between new listings, existing inventory and completed sales, highlighting the balance or imbalance between supply and demand in different segments of the market. From entry-level to luxury homes, the distribution of active listings compared to sold properties is definitely showing us a few things. (this is only MLS data private sales are not included)
The real estate market in the B.C. Interior remains active but is skewed towards buyers, with a total of 6,873 existing listings and 194 sales recorded over a one-week period.
New listings vs. sales ratio:
• Total new listings: 475
• Total sales: 194
• New listings-to-sales ratio: 2.45
For comparison, the ratio during the last week of October 2024 was 1.63. The lower the number the better it is for sellers. If I only take the ratio into account, things are a little tougher if you are trying to sell right now in comparison to a few months back. That suggests that for every home sold, approximately 2.45 new homes were listed, indicating supply is currently exceeding demand and growing over time, a key characteristic of a buyer’s market.
Current listings vs. sales ratio:
• Total existing listings: 6,873
• Total sales: 194
• Current listings-to-sales ratio: 35.43
In October 2024 it was 26.63, again showing things are better now for buyers.
With a ratio of 35.43, the inventory significantly outweighs sales, reinforcing the buyer-friendly conditions, where more homes are available than buyers.
Price range breakdown
New listings distribution
• Under $250,000: 574 listings (8.35%)
• $250,001 - $500,000: 1,486 listings (21.62%)
• $500,001 - $1 million: 2,887 listings (42.00%)
• $1,000,001 - $2 million: 1,451 listings (21.11%)
• Over $2 million: 475 listings (6.91%)
Sales distribution
• Under $250,000: 25 sales (12.89%)
• $250,001 - $500,000: 46 sales (23.71%)
• $500,001 - $1 million: 93 sales (47.94%)
• $1,000,001 - $2 million: 27 sales (13.92%)
• Over $2 million: 3 sales (1.55%)
Listings to sales ratios by brice range
• Under $250,000: 22.96 - in October 2024 it was 20.32
• $250,001 - $500,000: 32.30 - in October 2024 it was 20.99
• $500,001 - $1million: 31.04 - in October 2024 it was 23.82
• $1,000,001 - $2 million: 53.74 - in October 2024 it was 37.9
• Over $2 million: 158.33 - in October 2024 it was 199.33
Market insights
• Lower-priced properties (under $250,000 and $250,001 - $500,000): Higher listing counts but relatively lower sales activity, suggesting a slower market in the budget segment.
• Mid-range properties ($500,001 - $1 million): The most active segment, with the highest number of listings and sales, reflecting strong demand, however there is still lots of excess supply and it is growing.
• High-end properties ($1,000,001 and above): This segment is significantly slower, with only 30 combined sales compared to 1,926 listings, suggesting longer days on market for luxury homes.
The British Columbia Interior real estate market appears to be in a buyer’s market, with new listings outpacing sales at a rate of 2.45:1 and total listings significantly outweighing transactions (35.43:1).
I also see the numbers are showing the market velocity is lower than it was a few months back. That being said however, this is typically the slowest time of year and an anticipated seasonal change for the better is expected.
If you are looking to sell, let’s hope the spring thaw warms up the market as well and if you are in the market to buy, it looks like you have a definite advantage, at least for now.
If you have suggestions for other real estate-related articles, please email me at: [email protected]
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.
Anthony Shephard - Jan 29, 2025 / 6:00 pm | Story: 530454
Photo: Pixabay
Moving into your first home is an exciting milestone.
More than just a change of address, it’s a new chapter, a fresh start and for many, the fulfillment of a long-awaited dream.
But, as you unpack those boxes and start arranging furniture, you’ll quickly realize that owning a home is quite different from renting. Here’s a guide to help you prepare, know what to expect and embrace the joys and responsibilities of homeownership.
Before you start packing, take the opportunity to declutter. Moving is the perfect time to part with items you no longer need. Donate, sell or recycle belongings that won’t serve a purpose in your new home.
While packing, prioritize essential items for your first few days, such as:
• Kitchen basics—plates, utensils, a coffee maker. bathroom necessities: towels, toiletries, toilet paper.
• Tools—a hammer, screwdriver and tape measure are must-haves.
• Cleaning supplies—A vacuum, mop and basic cleaners to freshen up your new spac. (Hopefully part of the deal was your house was professionally cleaned but even the pros can miss a spot or two.)
Before moving in, visit your new home to inspect it thoroughly. Check that utilities (electricity, gas, water, Internet) are working and address any maintenance needs, such as fixing leaks or changing or repinning locks for security.
Decide whether to hire professional movers or enlist friends and family. If you’re doing it yourself, rent a truck and ensure you have enough boxes, tape and packing materials. If you have friends and family over, try to save the wine and beer for an after-the-move-is-done celebration.
Unlike renting, where you’re often limited by rules, owning your home means you have the freedom to personalize it. Do you want to paint the walls bright yellow? Go for it. Always dreamed of building a backyard garden? The space is yours to transform.
When getting ready to do the transformation, remember to watch the budget. Speaking of budgets, while you no longer have a landlord, you also no longer have someone to call when something breaks. Homeownership comes with costs like maintenance, repairs and property taxes. It’s a good idea to budget for these expenses and start an emergency fund for surprises like a leaky roof or a broken appliance.
When you bought the house you probably had a house inspection. It may be time to take a look and see what big ticket items may need replacing—things like the air-conditioning, furnace, hot water heater, roof or fridge. Make sure you look at the next few years as an opportunity to budget for some of those things.
Homeownership often comes with a deeper connection to your neighbourhood. You’re no longer just passing through, you’re planting roots. Expect to meet neighbours, join community events and take pride in the area you now call home.
Homeownership means there’s always something to do. From mowing the lawn to fixing a squeaky door, the list of tasks can feel endless. But the upside? Every improvement you make adds to the value of your investment.
For those transitioning from a rental to their first owned home, the differences can be striking. As a renter your responsibilities are often limited to paying rent and keeping the space clean. As a homeowner, you’re responsible for everything from minor repairs to major renovations. It’s a big shift, but it also gives you control over your living environment.
Each mortgage payment you make increases your ownership stake in the property, building equity over time. Your payments contribute to an asset that could grow in value.
Homeownership offers stability that renting often can’t. There’s no landlord to increase the rent or decide to sell the property, meaning you can truly make your home your own for as long as you like.
There’s something uniquely rewarding about owning your own home. It’s not just a place to live it’s a place to build memories, create traditions and truly put down roots.
Start with essential areas like the kitchen, bathroom and bedroom. Don’t rush to unpack everything at once, take your time to organize.
Introduce yourself. A friendly neighbourhood can make your new home feel even more special.
Create a schedule for tasks like HVAC servicing, gutter cleaning and landscaping to keep your home in good condition.
Add personal touches like photos, artwork or a fresh coat of paint to make it yours.
Familiarize yourself with the location of important features like the main water shutoff valve, electrical panel, gas shutoff and thermostat.
Moving into your first home is a significant step that comes with challenges, but it’s also incredibly rewarding. As you settle in, enjoy the little things like arranging furniture just the way you like, hosting friends for the first time and watching your investment grow.
Homeownership is a lifestyle change. While it may feel overwhelming at times, remember that every homeowner started where you are now. With preparation, patience, and a little creativity, you’ll turn your first house into a true home. Welcome to this exciting new chapter.
If you have suggestions for other real estate-related articles, please email me at [email protected].
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.
Anthony Shephard - Jan 15, 2025 / 6:00 pm | Story: 527693
Photo: Pixabay
Buying your first home is often described as one of life’s most exciting milestones but it is also one of the most stressful.
It’s a Saturday morning, the sun is mostly shining and it’s the day you'll finally join the ranks of the property-owning elite. Get ready for it, the process can feel less like a dream come true and more like an Olympic sport in endurance, decision-making and, of course, in panic suppression.
First, the excitement. Oh, the joy of imagining your life in a place where you can paint the walls any colour you want—even neon green. You picture cozy nights, maybe a little herb garden and the ultimate adult flex, hosting a barbecue without having to ask permission.
You begin with high hopes and a browser full of real estate listings. You want to look at a few before going to the bank. The homes look perfect—gleaming kitchens, spacious living rooms and manicured lawns. You picture yourself sipping coffee on the porch, hosting dinner parties and using Pinterest for something real.
With a few butterflies, the door opens on your first viewing and you realize the photos were taken with a wide-angle lens and the "spacious backyard" is more of a patch of weeds with some grass. Now you know that, like Facebook, life you look at online is not necessarily reality. Still, you’re optimistic until you discover the price.
It’s at that moment you realize your dreams may need downsizing. Goodbye gleaming kitchen, hello charming “fixer-upper.”
As for the mortgage, reality hits like a ton of bricks—or more accurately like a ton of paperwork. The first step, securing a mortgage, is like trying to solve a Rubik's Cube while blindfolded. You're filling out forms, explaining your life’s financial saga to a mortgage broker whose expression is like someone quietly suffering from lactose intolerance after they went to a cheese fondue party.
Your credit score is suddenly more important than your actual character, which, let's be honest, might not be much to write home about.
Then there is the budget. You’re told about closing costs, property taxes and the mysterious entity known as B.C. Property Transfer Tax. How do people afford this? you whisper to yourself as you nervously calculate whether selling a kidney is a viable option. After all, you do have two.
You’re finally pre-approved and you're ready to dive into the market. You start looking at homes and each one seems to have a catch. “Fixer-upper” really means "needs an exorcism." The "spacious" condo where the space is so open, has walls so thin you can hear your perspective neighbour muttering about the epic battle they're planning against the ants in their kitchen.
Buying a home is like dating. You see one that ticks most of your boxes and suddenly you’re imagining a future together. But like dating, there’s competition. You found one that doesn't smell like mothballs or despair but so did every other hopeful in a 50-kilometre radius. Suddenly, you're not just buying a home, you're in a cage match where the weapon of choice is how much you’re willing to overpay. You're even contemplating selling your soul, or at least your collection of vintage collectables.
You put in an offer and someone swoops in with a higher bid. Suddenly, your dream house is gone and you’re back on the market. By the fifth or sixth offer, you’ve grown a thick skin.
“It’s fine,” you tell yourself, pretending the other buyer didn’t just crush your soul.
Finally, You find a house you love, or at least, one you can afford without living on instant noodles for the next decade. The offer is accepted and it’s time for the home inspection.
The inspector, a man who looks like he's seen every horror movie and believes them all, points out every conceivable flaw.
"This crack in the foundation? Could be nothing, or maybe the beginnings of a sink hole,” he says.
The furnace, the roof, the electrical system, everything seems like it's one step away from disaster. Maybe living in a tent on the beach in a tropical country wasn’t such a bad idea.
If you thought the hard part was finding a home, remember that ton of paperwork. There’s more. There are forms for your mortgage, your lawyer and forms you don’t understand but sign anyway. It’s like being back in high school and pretending you read the textbook, but now it’s your financial future on the line.
The you get to closing day. You sign the last stack of papers, hand over the largest check of your life and get the keys. It’s a moment of triumph, quickly followed by the realization that you’re now responsible for a mortgage, maintenance and that roof the inspector warned you about.
Still, you walk into your new home and take it all in. Sure, the walls need painting and the carpet is older than you are, but it’s yours. You bought your first home.
If you’re about to embark on the journey of buying your first home, remember to keep your sense of humour. The process is overwhelming but it’s also full of small victories.
In the end it isn’t just about the house, it’s about the adventure of getting there. So laugh at the chaos, embrace the challenges and celebrate the milestone. You’re not just buying a house, you’re creating a home and a story worth telling.
Trust me, it might not be funny now but in time it will be a tale worth telling over and over again during the holidays.
If you have suggestions for other real estate-related articles, please email me at [email protected].
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.
Anthony Shephard - Dec 18, 2024 / 6:00 pm | Story: 523466
The real estate market operates in cycles, with periods of rising prices, stagnation, decline and eventual recovery.
One of the pivotal moments in this cycle is when prices hit their lowest point, or "bottom out." At that stage, buyers begin to re-enter the market. This dynamic shift sets the stage for renewed activity and eventual market stabilization.
But what exactly happens when real estate prices bottom out, and how does buyer behaviour shape the recovery?
In my last column, I talked about how offers are affected in a slow or falling market. This time, I thought I would look at what happens when things finally hit bottom. Every situation is different and this is by no means a perfect explanation.
When real estate prices bottom out, it signals the end of a decline and the beginning of stabilization. At this point, prices are at their lowest, often reflecting a combination of different factors—things like market oversupply, economic challenges and seller adjustments, where gradually reducing asking prices begin to better align with buyer expectations and their ability to get financing.
Bottoming out doesn’t happen overnight, it’s typically preceded by a period of slower declines as the market reaches an equilibrium where buyers and sellers are willing to engage.
Care needs to be taken in a falling market. When I did stock trading, there was two sayings, “It’s dangerous to try and catch a falling knife” and “It might be a dead cat bounce.” They mean that when things are coming down you don’t know if it has really hit bottom and when things rebound a bit that doesn’t necessarily mean prices have stopped falling.
Real-estate prices aren’t usually as volatile as stocks but care still needs to be taken. When prices do stabilize, buyers begin to view the market as ripe for opportunity. Several key dynamics unfold:
Sidelined buyers feel more confident about entering the market. The fear of further price drops diminishes as stabilization signals that the worst may be over. These buyers are often:
• First-time buyers: Attracted by affordable entry points, they see a chance to purchase homes that were previously out of reach.
• Investors: With prices at their lowest, investors look to acquire properties with the potential for future appreciation.
• Move-up buyers: Homeowners looking to upgrade find that they can get more value for their money during this phase. That is often tricky because moving up often means moving out, and selling at the bottom may mean less realized equity, meaning less money to spend on an upgrade.
Competitive pricing encourages transactions
As sellers accept the new market reality and adjust prices accordingly, buyers perceive value in the properties available. Homes priced competitively tend to sell faster, further signalling market recovery. Sellers who remain inflexible on pricing may still struggle to attract offers, but overall, transaction volumes increase.
Once buyers start purchasing, the surplus inventory begins to dwindle. That shift from oversupply to balanced, or even tight, inventory can happen quickly, especially if new construction has slowed during the downturn. Buyers who were initially hesitant, may now feel a sense of urgency, fearing they’ll miss out on desirable properties.
During a decline, lowball offers were common as buyers tested seller flexibility. When prices bottom out, however, the market dynamic changes. With increased competition and shrinking inventory, buyers are more likely to make reasonable offers to secure the property they want. Multiple-offer situations often arise for particularly desirable homes.
Buyer psychology plays a crucial role in shaping market recovery. During a decline, fear drives many buyers to wait, concerned purchasing too soon could result in overpaying. When the market bottoms out, this fear shifts to FOMO (fear of missing out) as buyers realize they could lose opportunities to others. This shift in mindset often accelerates the recovery process.
Indicators that attract buyers
Several market indicators help reassure buyers that the time is right to act:
• Stabilizing prices: Flat or marginally increasing prices suggest the decline has ended.
• Interest rate adjustments: A pause or drop in mortgage rates can motivate buyers to lock in favourable terms.
• Increased sales activity: A rise in transactions shows people are buying. The numbers start to reflect this a few weeks after those accepted offers have subjects removed and are then reported as sold.
While a bottomed-out market offers opportunities, it’s not without challenges such as buyer competition, price uncertainty and limited inventory.
For sellers, this period is equally critical. Listing at the right price is essential to attract offers while avoiding the risk of underselling in a recovering market.
Strategies
For buyers: Act decisively, secure financing early and stay informed.
For sellers: Price strategically, highlight value and be flexible.
The road to recovery
When real estate prices bottom out, it marks a turning point in the market cycle.
Are we there yet? I’m not sure but the interest rate drop didn’t hurt and it feels like things are shifting. Just be careful and listen for the meow.
If you have suggestions for other real estate-related articles, please email me at [email protected]
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.
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