Turn to today, the end of Spring 2009, and we have dramatically fewer numbers of homes on the Greater Vancouver real estate market and boom year numbers of buyers looking. 

So the question begs;  Where did all the Sellers go?

I have spoken to a few who were unsuccessful in the past year and the overwhelmingly popular answer for why they are not considering selling now is that they think the price is too low!

Too Low!

Can you believe that?

Let’s run some facts for you here:

FACT:  Listings have plummeted in comparison to last year.

Some areas have fewer than 50% of the listings they had the same time last year when listings were climbing at a record rate.

FACT:  We have more sales happening right now than we did last year.

Some areas have more than 30% greater sales volume happening right now.

FACT:  This imbalance between supply and demand has resulted in a cautious seller’s market and prices over the past month have gone up!

No, the prices are not at their peak values and whether they ever return to that level is a question only an oracle can answer (which I am not) but I do know that the prices homes are fetching these days are certainly not a small hill of beans.  These prices are still well beyond the average Vancouverite from affording a home so the supply of buyers who are attracted at these interest levels and able to make the move up are in a still-limited supply.  Were prices to go back up to the peak I have to say that I believe we will hit heavy price resistance in the market as the supply of able buyers declines.

The likelihood of prices staying around where they are right now is pretty good for the near term.  Should interest rates rise, watch out!  Should the confidence the market has right now wane from any external pressures, watch out!  Should prices drop two months in a row, resulting in a media frenzy of fearful headlines and buyers lose confidence, watch out!

That is why I am flummoxed.  There seems to me no better time than now to sell (if you were thinking to do so anyway, had tried before, or it was part of your plan).  To not place the home on the market when prices are stable, buyers are eager, and supply is constrained because you hope prices go back up to near peak levels is more than likely to cost you in the long run.

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