Market Update Spring 2009
Nanoose Bay, Fairwinds, Parksville, Qualicum Beach & Area - March 1, 2009
- Parksville Qualicum Beach REALTOR®
- Published: Mar 1st, 2009 at 6:24 am
First of all, we have had more than a taste of winter this year as we did receive record snowfalls in December and unusually cold temperatures. The crocuses are out now while the daffodils are popping up with more seasonal temperatures for this time of year. Our spring arrival is about 3 weeks late on SE Vancouver Island.
If you can afford to make the payments for the next 5 years or so and you love the property, then it's a great time to buy! We have a very good selection of properties to choose from with mortgage interest rates at 40-year lows. We undoubtedly have a situation of built-up buyer demand with many buyers having already obtained pre-approval for a mortgage. Lenders will guarantee the current rate for up to 120 days. Rates are at levels we didn't think possible and they may come down a bit more.
During this past fall and over the winter period, the real estate market across Canada has been sort of 'frozen'. Many people have been taking a cautious 'wait and see' approach. However, in the past month we see activity is on the rise. More buyers are now out looking. With prices having come down, buyers want to find the right property and at a bit of a bargain price. A couple of weeks ago I attended our RE/MAX Western Canada conference in Victoria. Virtually all the Realtors I spoke to said their markets have been starting to sell. This bodes well for us here as people can then move forward on their retirement plans and move here to the balmy West Coast.
Pricing on single family homes has come down about 7 to 10% from about the spring of 2008 level. Our market sales statistical data is being skewed by too few sales. It only takes a few higher priced home sales to cause market statistics to show a higher average sales price than it really is. Data currently shows that average single family home sale pricing has gone up from one year ago, when in fact it hasn't. Land pricing is fairly stable but here too, we have seen prices come down a bit. Keep in mind that the recent large price drops that are taking place in Calgary and Vancouver are due largely to pricing having skyrocketed there in recent years. Here, pricing went up only moderately over the same period.
New home construction has become more competitive. Building costs have come down especially on the price of lumber. With fewer customers, builders are offering sharp pricing and at times may offer extra incentives.
If you are selling, please keep in mind the price you paid for your property years earlier. Even with the current price correction, unless you bought as recently as 2007, you likely have made a very good investment. People who have participated in the market over time have done very well. They have found their home has been their best investment. For whatever reason, you weren't ready to sell in 2007 when prices peaked. So if you are selling now, listen to your Realtor when setting the price. They are professionals and have been carefully watching your local market. Yes, you may have to adjust what you thought you were going to get for your home sale, but you will also get the benefit of lower prices at this end when you contact Tom Whitfield and make your purchase here.
Let me know if you have plans to come see me this spring or summer, if you haven't already. It is a buyer's market! I am here to help you find the best property, at the best price and at the best terms.
See you soon!
Best Regards,
Tom
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