Soft Landing or Big Bang?

As you’ve probably seen in your tax assessment, values have been falling in Powell River (and across the country in many housing markets).  One school of thought is that we’re in for a crash in the housing market as prices readjust themselves after a

 long run of increases.  Experts say that historically, crashes have begun with some kind of catalyst such as a significant rise in unemployment or a rapid jump in interest rates.  At this time, neither of these seem imminent.  This gives rise to the other line of thinking that prices will just continue their slow steady decline.

‘Round About Town’…

Sometimes there are anomalies in property assessments from one year to the next, but as you can see from three homes in Townsite, Cranberry and Westview, the trend is pretty consistent over the four years shown:

As I’ve mentioned before, these changes are relative if you’re both buying and selling within

Powell River.  The “gloom and doom” opinions are suggesting we may see a 20% “correction” in prices.  I think this may be more relevant to prices in larger centers that tend to see greater fluctuations in the market.  Economic data suggests that our country and province are taking small steps in a positive direction.  Good growth usu

ally adds up to rising prices, so our slightly positive performance may yield a slowing of the drop shown above.  In my experience, Powell River tends to be a little behind and a little less dramatic than the major centers when change comes.

Maintaining Your Home…

Oil Tanks…

Old underground oil tanks are classed as an environmental hazard and should be removed properly from your property.  There are companies that do it for around $2000.  Lenders and insurance companies will become less willing to deal with properties with these tanks in the future.  If you have one, it’s very good practice to deal with it now before considering sale.  Old, but functional, oil tanks can also pose a problem at the time of sale. Recently, a buyer found that their insurance company would not provide insurance on the home about to be purchased without the replacement of this ‘out-of-date’ tank.  There used to be a grace period after sale, but that appears to have changed.  Before considering a sale (or purchase) check the age of the tank and whether it’s acceptable to your insurance company.

Interested in Powell River properties?  Call or email me!

Bill Bailey, REALTOR

Coast Realty Group (Powell River, BC)

1 800 485-4231

billbailey@coastrealty.com