When considering which of two or more competing offers to accept for your home, there is no doubt price plays a huge role. After all, if Offer #1 is $10,000 higher than Offer #2, that’s an enticing difference that puts thousands of extra dollars in your pocket.
Is judging by price always the right choice?
However, price isn’t the only thing you should think about when comparing multiple offers. There are other factors you need to consider as well. For example, what conditions are in the offer? If Offer #1 is conditional upon the buyer selling his current property for a specific amount, then what if that doesn’t happen? You could end up with an offer that dies and be forced to list your home all over again.
In that circumstance, accepting the lower offer may be your best move.
There’s also financing to consider. Most buyers will attach a certificate from their mortgage lender to show that they can afford the home and will likely secure financing with little difficulty. If you get an offer where the ability of the buyer to get financing is in doubt, that’s a red flag.
The closing date is another important factor. Offer #1 might propose a closing date that’s perfect for you, while Offer #2 is four weeks later. If you’ve already purchased another home, you might require a month of bridge financing if you accept Offer #2. There’s nothing wrong with that per se, but the costs and additional hassle are factors you should consider.
As you can see, assessing competing offers isn’t as easy as it looks. Fortunately, as your REALTOR®, I will guide you toward making the right decision.
Vancouver, BC – February 12, 2016. The British Columbia Real Estate Association (BCREA) reports that a total of 5,831 residential unit sales were recorded by the Multiple Listing Service® (MLS®) last month, up 33.2 per cent from January of last year. Total sales dollar volume was $4.39 billion in January, up 69.1 per cent compared to the previous year.
The average MLS® residential price in the province was up 26.9 per cent year-over-year, to $752,906.
“The BC housing market continues to build on momentum from a very strong 2015,” said Brendon Ogmundson, BCREA Economist. “Heightened demand is being met with the lowest level of supply in a decade, resulting in increased pressure on prices in much of the province.”
The housing market has seen a blistering start to 2016, with housing demand supported by low mortgage rates and rising employment and wage growth in the province. However, MLS® residential sales are forecast to edge lower this year. Total MLS® sales last year were the third highest on record at 102,517. A record 106,310 residential unit sales were recorded in 2005, while the only other year eclipsing 2016 were 2007 when 102,805 unit sales were recorded.
The BC Real Estate Association has reported that 2014 sales in British Columbia are up 15.2% over 2013, and that year over year increases were reported in all but one Real Estate Board area. This is the strongest rebound since 2009.
The South Okanagan Real Estate Board (SOREB) is finally seeing what appears to be a sustained recovery in the number of sales this year. In 2014, SOREB reported a total of 1757 residential sales across the board area, up about 25% from the 1401 sales in 2013 and just 1335 sales in 2012. This represents the highest number of residential sales in the Board area since the peak in 2007 of 2431 sales.
Oliver’s sales were up about 21% for total residential sales in 2014 of 149. This compares to just 123 sales in 2013 and 145 sales in 2012. 2007 saw 290 residential sales.
In Osoyoos the market has improved even more. There were 184 residential sales in 2014, up almost 43% from 129 sales in 2013 and only 111 in 2012. This compares to a total of 293 residential sales in 2007.
Across the SOREB area the total number of sales in all categories by the end of the year was 2,010 compared to just 1614 sales last year. The average sale price of a single family home ended the year at $375,529.
In Oliver 3 single family homes sold in December for a total in 2014 of 106 sales. This compares to 2 single family sales in December 2013 for a total last year of 92. The average single family home sold for $316,233. This compares to an average price at the top of the market in 2008 of $358,935.
This past year, there were 22 mobile home sales and 21 condo/townhome sales in Oliver. In addition, there were 6 farm sales, 11 lots and acreages and 5 commercial sales in 2014.
In Osoyoos, 5 single family homes sold in December for a total year to date of 110 homes. This compares to 2 sales in December 2013 and total year end sales last year of 81. The average sale price of a single family home sold in 2014 was $369,861. This compares to an average price of $425,012 at the peak in 2007.
In 2014, there were 3 mobile homes sold and 71 condo/townhomes sold in Osoyoos. In addition, there were 11 farms, 17 lots & acreages and 4 commercial property sales.
Beth’s Crystal Ball: Where does it go from here?
So, we’ve seen a year of pretty significant improvements in the number of real estate sales across the Province. The press is expounding on the return to ‘balanced’ markets, and even in some case ‘seller’s’ markets. What will happen here in our little corner of the South Okanagan?
I’ve been in this business pretty much full time since 1988. I’ve seen a number of ups and a number of downs. The real estate market is always a bit of a roller coaster. However, this last downturn seems a little different somehow. Other market places in the Province (most notably the larger communities) have seen a really solid rally, while in our smaller communities it has been a little spottier.
Here in Oliver and Osoyoos, 2014 started out gangbusters then began to fizzle by about mid-September. We closed the year up over all, but the rate of improvement had slowed. Kelowna, by contrast, continued to roar along moving into what they are terming almost a sellers’ market.
In the past, the market trends seem to be set in the lower mainland, then move out to the larger interior centres and then gradually ripple down to our smaller communities. So, in theory, what they’ve seen in Kelowna should be what we can anticipate here in the South. While I do think our demand and number of sales will show this trend in 2015, I think we are still some ways away from reaching balanced market conditions. At the end of the year there was still over 14 months worth of listings inventory for sale in Oliver and over 22 months worth in Osoyoos. It’s going to take awhile for the excess inventory to be reduced and to see any increase in prices.
Of course, other factors also come into play. Oil prices at ½ of what they were are creating a slowdown in the oil fields which will certainly negatively affect the Alberta economy. Albertans have traditionally been a large percentage of our buyers in this area, and we had recently seen a trend for younger people working in the oil patch buy here and commute to work up north.
On the other hand, Corrections employees anticipating a transfer to the new facility in Oliver are starting to make an appearance in the marketplace. There are said to be more than 280 full time positions when they open in 2016. I don’t think anyone expects that all or even most of these employees will buy a home in Oliver and Osoyoos, but even a smaller portion of them will have a significant impact on our communities and the real estate market. If Oliver and Osoyoos can expect even 1/3 of these people will choose to live here, that would mean more than 90 sales and/or rentals over the next couple of years. That is quite an impact when you consider that in 2014, there were a grand total of 333 residential sales between our two communities.
So, as always, there are some negative and some positive factors playing in our market here. I am optimistic that the positive will be the greater pull in 2015 and we will see continued improvement. And, the longer I’m in the business, the cloudier I realize my crystal ball is!
Everyone’s circumstance is different. For a personal consultation on your particular needs and desires, give me a call. I will listen to you and help you determine the best course of action for you.
am·or·ti·za·tion pe·ri·od
noun
The period of time it will take to pay off a mortgage in full.
Amortization periods refer to the length of time it takes you to repay your mortgage.
Typical amortization periods range from 10 to 25 years.
Longer amortization periods mean lower mortgage payments, but in the end you pay more interest.
Shorter amortization periods save you money and help you pay off your mortgage faster. But they may impact your ability to save for other things, afford what is important to you, or make your mortgage payments in the event your financial circumstances change.
Only you can assess your finances and choose an amortization period that suits you and your budget.
Buying a home may be one of the biggest financial decisions you’ll ever make. That’s why financial literacy is so important and why I’m pleased that November is Financial Literacy Month. When you have the financial knowledge you need, you are better able to make informed choices and contribute to a prosperous Canadian economy.
For more information on the financial aspects of the home buying process check out the Homebuyers’ Road Map, a collaboration between The Canadian Real Estate Association and the Financial Consumer Agency of Canada.
To access the Homebuyers’ Road Map please visit:
http://crea.ca/resources
Vancouver, BC – June 13, 2014. The British Columbia Real Estate Association (BCREA) reports that a total of 8,729 residential sales were recorded by the Multiple Listing Service® (MLS®) in May, up 13.9 per cent from May 2013. Total sales dollar volume was $4.9 billion, an increase of 20.6 per cent compared to a year ago. The average MLS® residential price in the province rose to $565,233, up 5.8 per cent from the same month last year.
“Consumer demand was noticeably stronger last month, with unit sales posting their highest level for the month of May since 2007,” said Cameron Muir, BCREA Chief Economist. “Rock bottom mortgage rates are inducing many would-be home buyers to enter the market this spring.”
“With most BC markets now in balanced conditions, home prices are up in nine of 11 board areas,” added Muir.
During the first five months of the year, BC residential sales dollar volume was up nearly 26 per cent to $18.8 billion, compared to the same period last year. Residential unit sales were up almost 17 per cent to 32,894 units, while the average MLS® residential price was up 7.7 per cent at $571,648.
For more information, please contact:
Cameron Muir Damian Stathonikos
Chief Economist Director of Communications and Public Affairs
Direct: 604.742.2780 Direct: 604.742.2793
Mobile: 778.229.1884 Mobile: 778.990.1320
Email: cmuir@bcrea.bc.ca Email: dstathonikos@bcrea.bc.ca
The British Columbia Real Estate Association (BCREA) is the professional association for more than 18,500 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.
To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.
For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.
To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.
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The BC Real Estate Association is reporting that the number of residential home sales across the province in February were up almost 25% over February of last year. However, the number of sales has fallen over January of this year.
BCREA has this to say about the market conditions:
“Consumer demand was much stronger in February compared to a year ago, but edged lower compared to January,” said Cameron Muir,BCREA Chief Economist. “Weak employment growth in 2013 has limited home sales so far this year to long-term average levels.”
“Record low mortgage interest rates and population growth continue to underpin the housing market and most regions of the province are at or near balanced market conditions,” added Muir.
Locally, year to date sales in the South Okanagan Real Estate Board, to the end of February, were up by almost 65% over the same period last year. Also significant is a reduction in inventory from 1526 active residential listings as at February 28, 2013 compared to 1436 at the end of February this year.
