Vancouver Homeowners Pulling Listings Out Off Market

Matt Chan • December 5, 2012

Attention First Time Buyers – Price Drops Being Held Off

From what I am seeing, the lack of home purchase activity is not due to lack of buyers.  It is due to a major expectation gap between what sellers are expecting to get for their home and what buyers are willing to pay for it.  I am seeing this from many of my purchase clients who are waiting for the ‘right price’ and expecting prices to drop.  I also have clients that need to sell their home before buying their next home but are very reluctant to price drop their home for various reasons (one of them being that they need the additional equity to upgrade).

Here is a recent article that discusses this in our market:

The free-falling Vancouver housing market shows no signs of reversing its slide with the latest figures showing November sales 30.3% below the 10-year average for the month.

The Real Estate Board of Greater Vancouver now says consumers have begun pulling their homes off the market rather than settle for a lower prices in what is still the country’s most expensive market to buy a home.

Since reaching a peak of $625,000, the board’s MLS Home Price Index for all residential properties in the city is off 4.5% to an average of $596,900. Prices are off 1.7% from a year ago.

Home sellers appear more inclined to remove their properties from the market today rather than lower prices to sell their properties

“Home sellers appear more inclined to remove their properties from the market today rather than lower prices to sell their properties. On the other hand, buyers appear to be expecting prices to moderate,” said Eugen Klein, president of the board.

REBGV said there were 1,686 sales in November, a 28.6% drop from a year ago. The decline in sales from just October was 12.7% and November sales were well below the 10-year average of 2,420 for the month.

What does this mean to you?

If you are in the market to buy a home, you need to prepare yourself to move quickly when you find the place you want.  What I am seeing now is that when a seller decides to price a home to sell, the home can move very quickly.  It is not uncommon for multiple offers on an attractive home that is priced right.  What that means is that the offers will be very competitive and your offer has to be very competitive to have a shot at winning the purchase.  Other than price, the other factors that make an offer attractive are: 1) how quickly or flexible are you with the subject removal and completion date and 2) how many other conditions are you going to put on the offer

To ensure you are in a position to put the best possible offer is to get pre-approved for a mortgage and to understand everything you need to quickly complete a mortgage.  A mortgage requires completing paperwork and it is best that you are prepared for it when you need to move in a hurry.  If you have any questions, please feel free to contact me for a discussion on this process and how I can help you purchase your home.

Matt

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Is There A Difference Between A Deposit And Downpayment

By Matthew Chan • April 30, 2025
If you’re new to the home buying process, it’s easy to get confused by some of the terms used. The purpose of this article is to clear up any confusion between the deposit and downpayment. What is a deposit? The deposit is the money included with a purchase contract as a sign of good faith when you offer to purchase a property. It’s the “consideration” that helps make up the contract and binds you to the agreement. Typically, you include a certified cheque or a bank draft that your real estate brokerage holds while negotiations are finalized when you offer to purchase a property. If your offer is accepted, your deposit is held in your Realtor’s trust account. If your offer is accepted and you commit to buying the property, your deposit is transferred to the lawyer’s trust account and included in your downpayment. If you aren’t able to reach an agreement, the deposit is refunded to you. However, if you commit to buying the property and don’t complete the transaction, your deposit could be forfeit to the seller. Your deposit goes ahead of the downpayment but makes up part of the downpayment. The amount you put forward as a deposit when negotiating the terms of a purchase contract is arbitrary, meaning there is no predefined or standard amount. Instead, it’s best to discuss this with your real estate professional as your deposit can be a negotiating factor in and of itself. A larger deposit may give you a better chance of having your offer accepted in a competitive situation. It also puts you on the hook for more if something changes down the line and you cannot complete the purchase. What is a downpayment? Your downpayment refers to the initial payment you make when buying a property through mortgage financing. In Canada, the minimum downpayment amount is 5%, as lenders can only lend up to 95% of the property’s value. Securing mortgage financing with anything less than 20% down is only made possible through mortgage default insurance. You can source your downpayment from your resources, the sale of a property, an RRSP, a gift from a family member, or borrowed funds. Example scenario Let’s say that you are looking to purchase a property worth $400k. You’re planning on making a downpayment of 10% or $40k. When you make the initial offer to buy the property, you put forward $10k as a deposit your real estate brokerage holds in their trust account. If everything checks out with the home inspection and you’re satisfied with financing, you can remove all conditions. Your $10k deposit is transferred to the lawyer’s trust account, where will add the remaining $30k for the downpayment. With your $40k downpayment made, once you sign the mortgage documents and cover the legal and closing costs, the lender will forward the remaining 90% in the form of a mortgage registered to your title, and you have officially purchased the property! If you have any questions about the difference between the deposit and the downpayment or any other mortgage terms, please connect anytime. It would be a pleasure to work with you.

RRSP As A Downpayment

By Matthew Chan • April 23, 2025
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Bank of Canada Rate Announcement Apr 16th, 2025

By Matthew Chan • April 16, 2025
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