tag:blogger.com,1999:blog-17260617778661455012011-07-28T08:41:36.803-07:00John Skenderhttp://www.blogger.com/profile/04119850696551685341noreply@blogger.comBlogger41100tag:blogger.com,1999:blog-1726061777866145501.post-38214733767865342662009-02-18T07:20:00.000-08:002009-02-18T07:30:14.208-08:00Having the opportunity to be in the Real Estate business for a long time, I have experienced many ups and downs in the market. Comparing the ups and downs, 99% of the time, Buyers and Sellers have almost always followed the major trends to buy or to sell.<br /><br />However, in a negative market there is always a positive for both buyer and seller. For the buyer, there are some amazing deals and products. It is simply a "buyers market". The opportunities and benefits to work with an experienced Realtor is enormous. Find a Realtor who can take your best interests to negotiate the best deals.<br /><br />For sellers, this is also a great opportunity to move your property quickly to take advantage of new markets that may have been out of your reach. This requires negotiation as well to find the "sweet spot" for your particular situation. This may depend on when you purchased and the return you have already made. Again, an experienced and seasoned Realtor can help see the difference.<br /><br />With buyers finding deals and sellers finding the right new investment, it is an exciting time. It is also a time to sit down with those that have gone through this before and plot the best strategy for your investment.<br /><br />As a result, it might be hard to see it, but these times may be the best time for new buyers and seasoned investors.<br /><br />- Fred Moy<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/1726061777866145501-3821473376786534266?l=vmgpm.blogspot.com' alt='' /></div>Fred Moyhttp://www.blogger.com/profile/12957367643245019299noreply@blogger.com0tag:blogger.com,1999:blog-1726061777866145501.post-10591428376881913692009-02-17T17:00:00.001-08:002009-02-17T17:11:00.044-08:00I still remember paying my first mortgage back in the 80’s and thinking the world was in a much better place when interest rates dropped below 10%. It was an incredible moment, and one we thought would not repeat itself during my tenure in the Real Estate Industry. No doubt, this caused the market activity to increase as everyone thought this was cheap money! (laughter). I’ll get back to this.<br /><br />Today, I see a lot of ink being dedicated to the "dropping real estate market", or the "10% market price reduction..." Then the "15% market price reduction..." Then the "20% market price reduction...", and so on and so forth. If I took the combined market decrease of all the articles written, we should be ready for single family homes selling at $50,000... Well, maybe not.<br /><br />Truth be told, the market price for Real Estate has come down, and it currently sits at approximately 10% to 20% reduction over last years values, depending on price point, locations, etc.<br /><br />One thing we must understand is that it is perfectly normal for any free market, assuming we don’t have too much government intervention, to have price fluctuations. And, as always, price is a function of supply, demand, and current interest rates... which inevitably leads to the price adjustments discussed. From a purely academic standpoint, incredibly low interest rates, a linear reduction of MLS listings (supply) in which we are now experiencing, a reasonable economy of which BC most certainly has, should logically lead to a greater demand, and housing price increases. So why aren’t they? Why is the opposite happening?<br /><br />Because this is a normal response to a changing market environment. We must go through a period of adjustment as we are doing now, in which prices adjust to a point where the market responds favorably... and quickly. This takes time, but I believe its on the cusp of happening now, as people are getting new mortgages pre-qualified at record numbers, for the following reasons:<br /><ol><li>Incredibly low interest rates. An open mortgage is available at under 3%, and a 5 year closed is 4.35%. I consider this free money, given that double digits were once the norm. I have never seen money this cheap in my life! This is an opportunity that i hope people take advantage of as we really may not see the likes of this again.<br /><br /></li><li>Price reductions of up to 20%. Although price adjustments are normal for any healthy market, a price reduction combined with steadily decreasing interest rates, a decreasing MLS listing supply, and a continued trend on net-in migration out pacing net-out migration usually means a price increase. However, the short term demands put on developers ( from their banks) to meet sales criteria means there are some incredible short term opportunities for buyers today, and this can be seen on two of our current developments in Vancouver. The Scene and the Rai. Check out each of these sites on this web page to see for yourself. When the banks put additional pressure on the Developers to meet a pre-determined sales criteria, the result is always a favorable situation for the buyer. That’s the good news! The bad news is that this unfortunately can not, and will not last, given the current overall economic conditions in BC.<br /><br /></li><li>A steady reduction in housing supply. MLS stats show a reduction of listings by approximately 15% in January 2009... with the projected trend to continue throughout the year. Add to this the number of NEW developments that have been shelved in the last 10 months, and you have a situation where there is guaranteed to be a lull in the market supply on new homes, in the very, very near future. If my predictions are correct, and demand increases, then this could easily affect the market by beginning an upward pricing trend once again.<br /><br /></li><li>Rental units and rental rates. Outside of larger developers who may be converting their strata units to rental for the short term, there is no sign of any significant increase in the supply of rental units in the lower mainland. I have seen new 2 bedroom suites in east Vancouver rent for $1,600.00 per month, with people waiting in line to see the place. With this trend continuing, the economics and logic of home ownership become a stark reality given the low interest rates and reduced prices compared with rental rates.<br /><br /></li><li>Conclusion. Although there is much more to a real estate market prediction/analysis than what is mentioned here, it is extremely important to note that after every economic downturn, financial meltdown, etc... there has always been a recovery. Black Monday 1987, the Asian financial crisis 1997, Russian financial crisis 1998, 911 and many, many more. These crisis have always occurred throughout history but a snapshot of real estate values in Greater Vancouver through 1977-2009 would reveal that had you bought at the time of any crisis during 1987, 1997, 1998, or September 11, 2001, you would have been far ahead, because long term, you would have made tremendous gains. Even if the market had not moved upwards, your tenants would have been providing you with retirement income for years to come!<br /></li></ol>Thanks for taking the time to read my thoughts on our Real Estate market, and please take the time to surf this site and some of the incredible opportunities available to you at this time!<br /><br />I'm interested to hear what you think as well. Drop me a comment below to discuss this further. If you have questions or requests for future topics, feel free to email me anytime.<br /><br />- John Skender<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/1726061777866145501-1059142837688191369?l=vmgpm.blogspot.com' alt='' /></div>John Skenderhttp://www.blogger.com/profile/04119850696551685341noreply@blogger.com3tag:blogger.com,1999:blog-1726061777866145501.post-29686924523571119862009-02-03T14:59:00.000-08:002009-02-03T16:08:18.547-08:002009 marks a great opportunity to find amazing value and affordable homes, even in Vancouver!<br /><br />With low mortgage rates and the availability of many new developments, the buyer has many choices to choose from. Depending on what your needs are, it's important to find a realtor that has a good knowledge of what is available on the market today.<div><br /></div><div>Call us today to find out more about our various projects to learn how you can get a head start on the latest developments. There are some enjoying the lowest prices on concrete and steel construction in Vancouver!</div><div><br /></div><div>We look forward to hearing from you.</div><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/1726061777866145501-2968692452357111986?l=vmgpm.blogspot.com' alt='' /></div>John Skenderhttp://www.blogger.com/profile/04119850696551685341noreply@blogger.com1tag:blogger.com,1999:blog-1726061777866145501.post-67348508467224062192009-02-01T19:28:00.001-08:002009-02-01T19:28:19.097-08:00VMG Project Marketing is one of Vancouver's most successful real estate marketing firms with years of experience in multi-project marketing throughout the lower mainland.<br /><br />This website is your source for the latest Vancouver real estate news as well as the hottest properties throughout the lower mainland.<br /><br />For more information on our projects, please <a href="http://www.vmgpm.com/contact.php">contact us</a> today.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/1726061777866145501-6734850846722406219?l=vmgpm.blogspot.com' alt='' /></div>John Skenderhttp://www.blogger.com/profile/04119850696551685341noreply@blogger.com1