The majority (58%) of Lower Mainland residents believe it is a bad time to sell a home over the next three months, while 34% believe it is a good time, according to REW.ca’s September Real Estate Consumer Confidence Survey.
This marks a big switch in consumer opinions from just six months ago, when the March survey found 56% of residents had a positive outlook on selling a home; only 33% said it was a bad time.
Of the 58% of residents in the September survey who did not think the time was right to sell a home, 37% cited a correction in prices as their main reason. One-quarter blamed slowing sales; 16% said there were too many properties for sale.
Of the 34% who felt that now was a good time to sell, taking advantage of current high prices and selling before a market correction were considered paramount.
At the opposite end of the spectrum, consumers were equally divided, with 50% of respondents agreeing it was a good time to buy (compared with 46% in March). The largest deterrents to buying this fall included high prices (34%) coupled with a fear of home values dropping after purchasing (29%).
The survey also provided insight into why people choose to live in the Lower Mainland, despite its high prices. Forty-three percent of residents cited family as the top reason, ahead of job (30%), climate (18%) and scenery (16%).
“Our surveys are designed to get in touch with consumers and really find out what people are thinking,” said Ian Martin, general manager, REW.ca.
“Our fall findings indicate that consumer confidence in the Lower Mainland market is waning – particularly when it comes to selling homes – but we should all keep in mind the fact that real-estate markets are cyclical. We are also intrigued by the revelation that, despite the Lower Mainland’s enviable lifestyle offerings and stunning scenery, family is the number one reason why people stay in this market. Home truly is where the heart is.”