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    Understanding the Real Estate Market
    by Garry Venn


    All housing markets fluctuate with strong and weak periods so there really is no right time to buy or sell. No one can predict the real estate market but as history has shown the market will always rise in the long run so it is still good to know how the market works. A good economy equals a stronger housing market which also produces more construction and development.

    First of all let me talk about the buyers market. In this real estate market there are lots and lots of homes for sale. Houses take longer to sell which in turn gives buyers more time to decide whether they really want the house or not. The biggest thing about a buyers market is that the houses have to be priced right if they are going to sell. On top of that, sellers will usually have incentives to go with the house, whether it is to do with financing or commission bonuses. When you see this housing market, get out there and buy!

    Next we have the sellers market. In this real estate market there are very few homes on the market with a lot of buyers out there looking. In this situation houses will sell fast, for full or more than asking price with bidding wars happening quite frequently. We have seen this for the last 4 years in Victoria BC. Buyers have less time to decide and less negotiating power. If you are in this market, make sure you do your homework in the neighbourhood you are looking and be sure to get your financing in order before you even start!

    There can also be seasonal influences on the real estate market. The winter months tend to be slower for a couple reasons. The first obvious reason would be the festivities of the holiday season. Most people are just too busy and stressed with Christmas. Ugly weather is another reason, as everybody knows their house and yard look better in the summer months. Living in Victoria BC, luckily, we are not very affected by this. On the upside to the ugly weather, there are fewer houses on the market in the winter which means less competition. A higher percentage of houses on the market sell in the winter, than any other time of year, but it is a lot more stressful!

    And last but definitely not least, are the dreaded interest rates. The higher the interest rate, the less buyers can afford or even want to be out looking at real estate. Fortunately the residents of Canada have not had that worry in quite some time.

    For more information on buying and selling real estate in Victoria, BC visit:http://www.VictoriaPropertyInfo.com

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