The Do-Over - Now's Your chance To Catch The Fallen Knife!

‘The Do-Over’ sounds like one of those Ryan Reynolds old chick flicks hey? Well, just like our favourite Vancouverite (yes, Ben loves Ryan Reynolds a little tooo much!) it’s a good one. Well, the topic is, nonetheless…
Rewind to this time last year. The Vancouver market is really in full swing of it’s downturn and the numbers are looking downright ugly. Of course the talk is that it's coming down even more, don’t catch a falling knife and so on. Well, at that time the knife was slowing down fast, ready to reach the bottom in August/September time and start it’s immediate bounce back upwards.
The turnaround from the bottom of the market, back into multiple offers, to sales over ask took a lot of people, including most realtors by surprise. Not that it would happen, but how fast it would happen. Because of this, people missed A LOT of the opportunity at hand. With the assumption the times would be more telling, they’d have time to gather themselves and attack the market ready to capitalise on a Vancouver market low.
If that was you. You have been gifted a ‘do-over’. Now we call this a gift as this does not happen regularly in Vancouver at all. Our market doesn’t crash, rebound strong, to then immediately crash and allow those who missed opportunity to get back in the game.
Covid shut things down, brought numbers down low and brought with it a new opportunity to buy in. Businesses are now opening up again, people are going back to work, property sales and demand is starting to be on the rise. This is the exact telling of the bottom and anything other than this is speculation at this point. We’re talking about a ‘second wave’ or a ‘recession looming’. As we keep expressing, these have not happened yet so you are gambling on them doing so if that is your reasoning to hold off.
The truth in front of us already, proven by the numbers in May (more on that in the May update coming shortly) that transactions are increasing. Before this pandemic, we were at extremely high rates of buyer demand and that does not just evaporate over the course of 6-12 weeks. Especially looking at how low our inventory was vs demand, this is THE opportunity to have your ‘do-over’ if you missed the upswing as we lead out of 2019 and into 2020.
Additionally, adjust your expectations of what a deal in Vancouver real estate is. If you’re waiting for that $1,000,000 house to become $750,000 then you are not going to be getting a ‘deal’. These numbers just will not happen and the deal is buying them now. As we start to increase in transactions and demand, you will see the upswing happen a lot faster. That $1,000,000 house you were waiting on, sells for $950,000 ….. Well as demand picks up, do you think that sale number is coming down or going up?! 
You guessed it, with more demand (which is already happening now, like literally NOW) that price increases. Hindsight is 20/20 and at that point it’s easy to see the deal was the purchase of $950,000. But you know, you want $750,000 so you waited ….. And you’re waiting …… and still waiting…. And a little more waiting …. Oh now that similar type of home is selling for $1.1M and all of a sudden you’re even further away from your target price than you were before! You can either be the statistic in this market, or be a victim of it.

Hoping this helps guide you in the right direction as always and thank you once again for joining us this week! If you have any questions on the market as we navigate out of the Covid-age, feel free to reach out!
Until next week,
Jay McinnesBen Robinsonjay@mcinnesmarketing.comben@mcinnesmarketing.comT: 604.771.4606T: 604.353.8523