Victoria British Columbia Real Estate Information Archive

Sometimes I can get to busy and do the right thing but its the wrong thing. Also sometimes I am thinking about 20 things at a time and make mistakes.

Last week I went to my bank, RBC, and did a deposit and asked for cash back through ATM. Did deposit, inserted envelope, grabbed receipt and card and left. What did I forget? the $100 that I had withdrawn. By the time I got back to bank 5 minutes had elapsed and the money was gone.

I spoke to Robin at the bank and explained what happened. I assumed its gone and a lesson for Ron to slow down. Well they checked the camera and could not find out who may have accidently taken money but they credited my account for $100! wow. talk about great customer service! I am very glad to have them do my banking day to day for me as they know me (and put up with me) and they can deal with all the different business and projects I have going on.

Thanks Robin! Thanks RBC

Ron

ps. I now double check when withdrawing money! and slow down!

Its funny to see the media all over the change in the Market.

As I mentioned here back in May, the market peaked in Activity in April and has been going south, big time, since then.

We had a very successful July and August is looking good. So whats the secret people ask - price! price! price!

We can do all the marketing in the world and we do but if buyers don't like your price, not going to sell.

So what to do. Take a look at last sales that are comparable and deduct 3-5% and put your home there. it will sell. There are lots of buyers around but they moved down fast when market did. I still come across some sellers who think its getting better. This market reminds me of 1994 all over again. Sellers wanting more than market and buyers waiting. Of course 95-2000 saw price reductions, flat market but lots of sales.

We find that when sellers adjust to new reality the market goes. There is a bottom in our market to where prices will fall but when prices have doubled or even tripled in last 9 years the days of 10% increases are gone.

But with cheap cheap mortgage money out there, why not buy? We were quoted a 5 year rate yesterday of 3.79%!!! I remember starting in market at 14%! and when it got to 9% being happy!

The buyers we are working with are finding some very good buys out there right now. and our sellers are finding if priced right that there are sales happening.

Ron

I had a great chance to attend a nice community event this morning that reminded me that I work in a great area with some great local people.

Local Chartered Accountants Flader, Hale and Hugesman hosted a Pancake Breakfast for a very worthy cause. They were raising funds for Ethan Gregory and his family.

Ten year old Ethan has been diagnosed with Wilms Tumor (cancer of the kidneys) and until December he will be traveling from Sidney to Vancouver Childrens Hospital every second week for Chemotherapy.

If you were thinking that you would like to donate then contact the accountants at their office at 250-656-3991 and they will let you know how and where.

It was nice to see the support from local business's - Fresh Cup Roastery Cafe, Seaside Times, Starbucks Coffee, Thrifty Foods!

We live in a great area on the Saanich Peninsula and its nice to see the local business's leaders out making a difference for a deserving young man and his family!

If you get a chance to donate, do. if you get invited to events like this, go. If you feel like it, host an event!

Thanks to all involved. You make a difference!

With the major market changes over last two months the media has finally caught up to what I said in March and April - the market has shifted. Victoria had a 34% drop in sales in June and a 45% drop in sales in July and only now the Media is picking up on it. This year the most number of sales were in April vs highest number last July. So the market has changed. What else? well there are 4400+ homes for sale. with 527 sales last month that means there are about 8 1/2 months homes for sale. Not huge by some US cities standards but still what the economists say is a buyers market.

So what should you do?

First stop listening to the self serving groups that don't say the truth. I and many friends laughed the other day when our local paper reported on what our provincial association had to say. To paraphrase they said "Sales are down, inventories are up and we expect prices to keep rising". Are you serious? any math student from junior high would realize this is not the way the world works. With less sales and more inventory that means prices will fall not rise. We have seen a 5% drop since May 1 in REAL Prices. by this i mean by what we are seeing from the high in April to now. Take away the multi million dollar sales and see what really is going on. We show our clients monthly what is happening with our Total Market Overview or TMO reports. We show our clients by price range what happened in last month, last 6 months and what was selling and what was not. To see then click here.

Second, find a realtor who will show you the stats and be real and work for you to get you what your looking for in a home. Remember sometimes what you need and a "good deal" are not the same. We can show you the difference.

So your a buyer, what should you do? A great friend and mentor told me one day a basic about Buyers Markets  - Gary said "Ron its a buyers market for a reason, Buyers should buy!"

So you say well I should wait for the bottom. No one knows where that is. The question to you is are you buying an investment or a home? do you want to make your own payments or your landlords payments? With interest rates on way back down owning a home has been cheap for a while, if you focus on payments. you have to make payments- to a landlord if renting or to a bank if buying. After 10 years what do you have? with a landlord - nothing. With a bank you have paid down the principal of your home. No matter where the market is you will have some equity as you have been making principal and interest payments. If you put mortgage on fast pre-pay; things like one extra payment a year, a principal payment, paying bi weekly vs monthly you can shave years off your mortgage. The question is what if market goes down. Then you don't sell. Or you take advantage and buy up in a down market.

You will always need a home to live in, question is are you creating equity or is your landlord?

If you would like to see some options on how to pre-pay and how to make a good buy in today's market give me a call.

Many people say they have heard about Victoria and wish to visit. Many that I come across have been to Victoria and love it. If that is the case for all of you check out this great video on Victoria and some of the great things to do.

I am proud to have been raised here and have 5 generations before me live and work here. Its a great place to live, a great place to work, a great place to serve (Central Saanich Council ) and a great place to come home to.

As many of you know I travel the world to volunteer and I always look forward to coming back home to the Island.

If you would like to make the island home let me know and we can make your dream come true!

Well i just got back from speaking at the annual CRS Sellabration Conference (Certified Residential Specialist Designation, I am only in Victoria) in Las Vegas. It was a cool 44, Celsius or 112 for my American friends! Learned lots of things to help my buyers and sellers and about markets around North America.

It was interesting to hear the other speakers and hear about market in USA. Did you know that in Las Vegas it is 1 in 4 homes that are in foreclosure and another 1 in 4 that are behind on payments! huge change. in some cities 98% of all business is short sale (means the bank takes less and you can't buy a house for 7 years) or foreclosure sales.

We are lucky in Canada and Victoria, or are we?

Stats as of this am,July 2010 sales month to date, 263. July 2009 sales 933! Ouch there is a change. Last month we saw a 34% drop in activity, this month it could be 50% yet prices aren't moving. Hmm. So houses aren't selling and prices have not changed. What gives or more to the point what has to give? Price. We believe there has been a 5% drop in prices since May 1 and we are likely to see a 10% drop in home prices by the end of the year. So how am i still selling homes? 5 so far this month. its price and staging!

All the marketing in the world will not sell a overpriced home. and all the marketing will not sell a unstaged or messy home. We just listed a home yesterday at 4786spring.com and the owners had spent 2 weeks staging and getting it ready for sale! wow what a job on a great home. But its also in lower priced range that staging is important. Our new clients at 8-949 Cloverdale also spent a week getting their home ready for the market.

In today's rapidly changing Victoria and Saanich Peninsula Real Estate Market you need to price it right (aggressively which means below the last sale price of what just sold if you want to sell. For Sale comparable's don't matter) and stage the home. Put a clean coat of paint on it, declutter, clean and do whatever it takes. Oh and lots of pictures. With 94% of people starting their search on line pictures and floor plans are the key.

Started day off with great email from Sarah Berchtold with a copy of her new song and Music Video.

Sarah is the president of Firm Foundtions Romania and is one of the group of people I support in Romania from the sale of homes in Victoria and being on their Board of Directors/Advisors.

Sarah is a great musician and along with Steffi Vogel wrote this great song entitled, Unwanted.

It's a moving video to what goes on in the Brasov Childrens Hospital.

It was a great way to start the day as a reminder. A reminder of how blessed I am to live in Canada and have the opportunity to do the job I want. We are so blessed and its awesome to see the work God is doing in the world and in me. I am lucky or blessed to be able to travel to Romania 2 times per year to volunteer. This year I am headed back in September after doing a Habitat for Humanity build in Macedonia. I am introducing some close friends and fellow businessmen to the work in Romania we do. Steven Dagg, Len Wansbourgh and Rob Matthews will be joining me to work in Children's Hospital in Brasov, visit Gypsy Village in Budilia where we do Home Makeovers and then travel to Comanesti to do a few days of hard labour at the Habitat for Comanesti build.

Thanks to all my friends and clients for supporting me with business so i can then support others and give time.  Also to my great staff who allow me to travel and volunteer and keep the sales going at home, THANK YOU!

Have a great day.

ps for more information on some of what goes on check out my communities page

So here is the latest in Victoria Real Estate market:

MONTH END STATISTICS, Victoria Real Estate Board

                                       June    June             

                                       2010    2009

Net Unconditional Sales        625      946

New Listings                     1,503    1,436

Active Listings                  4,730    3,794

So a change of over 300 less sales and 1000 more homes for sale. So whats it all mean

Well its a buyers market. This is good if a buyer. If a seller it means that you want to be on the leading edge. That means aggressive pricing and great condition and staging of home. Someone asked me whats the difference on a buyers vs sellers market in terms of pricing. With over 8 months supply of homes, in general it means that you need to look at latest comparable sales and be below them to sell. In a sellers Market the opposite is true. Its not a bad thing. This weekend a home that was priced right had multiple full price offers on it. Many would say well raise the price it was too low. Nope, it was priced to sell not sit. We are working with our sellers on a bi weekly basis to lower or reposition the home in the market as we like to call it.

There are sales. that's the good news. But real prices are down. Our Real Estate Board came out and said no prices are the same but there were 16 sales of waterfront over a million, so the numbers are skewed. We have a report, the TMO report that provides a complete breakdown and shows whats really happening by area and by price range. For example in Victoria 19% of all homes listed for sale sold (total listings above is for condos, townhouses, land and houses) but in the $400,000-$449,999 range 23.7% of all homes listed for sale sold. We break it down by area and price range so that clients can see what is really going on rather than averages. That is important because Real Estate is a local market driven by local conditions. In each area you can have markets doing great others not doing at all. For example in Central Saanich in the $550,000 - $599,999 range 31.3% of all homes sold last month for an average price of $574,108, far below the average price that the Real Estate board says for all of greater Victoria. What this means is twice as many homes as a percentage sold in this price range vs. all of greater Victoria numbers. Whats it mean? Price it right and its sold. Price it just above or well above the market and it sits.

Its a fun market. This is the market where I get to use the 25 years of award winning service (says the Real Estate Board) to make a difference for my clients.

We had the chance to list a truly character home in Victoria at 418 Kipling. The owners have asked for a quick sale so we have reduced to below market value. This is a one of a kind home and if you are looking for character, function and great location then this is the one. Two parks within a throw, good access to downtown and great schools. Check it out at www.ronkubek.com or for more info go to www.418kipling.com for complete pictures, virtual tours, floor plans and so much more. I really like this house and if you pull up the carpets you will find wood floors and just a quick polish on them, some quick paint and you have a really solid home in a good area.

I just returned from a quick week off to Maui where I attended golf school. Also a quick chance to catch up with a few friends in Real Estate on Maui.

Some interesting information I gleaned from them

1. over 2500 properties in foreclosure but the banks have not brought to market. Why? they say the banks want to keep it from being like Arizona or Nevada or California or Florida. My question was why? if you release them the downward pressure will get the prices to where stuff can sell, in a market where 98% of sales are short sale or Foreclosure, and you will find the bottom. I think the banks that did it on the mainland found out that at least they can find the bottom. Maui has not found it and according to one real estate expert he figures another 5 years before bottom.

Whats the lesson for Victoria? right now we have over 4500 listings and sales in June are trending to about 300 sales less than last month. Does this make me a pessimist? nope but we track numbers so our clients can get a jump on what way the market is going.

2. Price is important but relationships are even more! People work with people they know and trust.

Lesson: my past clients and friends value my opinion as they know I am not trying to "buy" their listing. So do all the expiry's who call me up to come over and take over their listing. Why? Using statistics, comparable's and being upfront with clients is the only way to be. A old real estate trainer taught me that a great dialogue i use with clients about price is "I would rather let you down than lie to you later why it did not sell".  Basically its like going to the doctor, you may not like what the Doc or Ron has to say but its what you need to hear in order to sell.

3. Game of Life First or GOLF. It was a nice break to recharge. I think that sometimes we all need a break, whether its a day to go for a hike or walk or sit on the beach or to get away. No phone, no computer. Try it for 24 hours. see how you feel. if anxious take another 24 hours! if not then you are ready to get back to work. For me it was about learning from another pro (golf pro in this case) about the basics. Same thing in Real Estate, to sell your home its about the basics. Staging and Price is all you control, the buyer controls the price they are willing to pay. Time to take a look at your home, if its not selling and figure out what you can do to stage the property better or put the price so you are in front of the price if a declining market that means less than the last comparable, and if in a flat market then the same as the last comparable. 

If you are buying now then its about price - interest rates and purchase price. Its always good to move up in a down market