Now is the best time "in several years" for move-up buyers to capitalize on current market conditions and upsize from a smaller home, according to local REALTOR® Matt Kerr.
Speaking recently on the Real Estate Therapist radio show on Roundhouse Radio, Kerr told REW.ca editor and show host Joannah Connolly that this is because of a weakening detached home market entering balanced or even buyers’ market conditions in some areas, combined with condos and townhomes remaining in a strong sellers’ market.
Move-up buyers are in a great position to sell their current smaller home at a strong price, and make lower offers with subjects on detached homes, for which there is now less competition, said Kerr.
“There is a major holding pattern [in the detached home market]. If you are considering upgrading, say, going from a townhouse or half-duplex or apartment into a house, now is the perfect time to do so,” Kerr said. “This is the first time in years that we’ve seen that opportunity.”
He cited the example of market conditions in East Vancouver, where he said detached houses are in a buyers’ market at a 10 per cent sales-to-listings ratio for the first time in several years, compared with condos, duplexes and townhomes where the 44 per cent ratio means a still-strong “sellers’ market with upward pressure on prices,” added Kerr.
“Recently we’ve been seeing that people are able to make a written offer with a subject to inspection and financing. Four months ago, that was not happening if you wanted to buy a house, or even a condo – we were seeing subject-free offers on houses. Now we’re seeing ‘subject to sale’ [of buyer’s current home].”
“A current client of mine is looking to buy a home in Burnaby, and we are putting in her offer subject to the sale of her very hot townhouse on the East Side, because we are confident that we can sell her townhouse very quickly. So now is the perfect time to upgrade with a ‘subject to sale.’”
To listen to the full show, click here – you can scroll through to the conversation on move-up opportunities starting at 15 minutes.