Shopping for Real Estate in Fernie about 5 years ago was a much simpler undertaking. A small selection of homes to choose from, almost no negotiating leverage due to stiff competition; more often than not, your choice of home was based on availability. The situation was similar to going to a restaurant with only one menu item which is already in short supply, with a line-up of hungry customers waiting outside. This was the height of the seller’s market that has existed in Fernie for the past 10 years, until now.
Prices are continuing to drop, with no end in sight. 35% of all homes listed on the MLS in Fernie have experienced a price reduction in the past several months. Real Estate signs are popping up on lawns all over town like some sort of invasive plant species. 115 condo listings in Fernie, 84 house listings, there is no shortage of selection. We haven’t seen this in the valley for as long as I have lived here (11 years). It appears to be a buyer’s market, so why so few sold signs?
Back to our simple economics lesson from a couple of months ago: supply vs. demand. Supply is way up and demand is way down. There are many options for all buyers in all price categories. Buyers can afford to be choosy and sellers have reason to be nervous.
Before you add your home to the glut of listings already on the market consider the following:
1.What is your bottom line and is it realistic?
2.If you purchased your property in the past 3 years are you prepared to break even? Perhaps even take a loss?
3.Real Estate is a commodity not unlike a stock or bond… prices go up and down.
4.The world housing economy is in the toilet, why would Fernie be insulated from that?
There are a number of reasons for the sluggish market right now, the least of which being the bad snow year last year. Locally, I feel that there is a false sense of value placed on many of the properties for sale coupled with a hope that things will improve by morning. There is evidence to suggest that things are going to get worse before they get better.
The key to a successful sale right now is the right price and the proper exposure to the marketplace. Make your decision to sell based on hard facts, not on emotion. Have your REALTOR(r) show the comparables in your neighbourhood and more importantly what has sold. Remember, people can list their house for whatever amount they want - it doesn’t mean that it will sell. The numbers simply do not lie.
Please post your comments and feel free to email me if you would like any additional information.
Thanks for reading.
Ryan
