Statistically and practically, it’s been a buyer’s market for all of 2013 so far. (And probably before that too!) On paper, we’re in a buyers’ market when the ratio of sales to the number of active listings available is below 15%. It’s referred to as “balanced” between 15% and 20% and a sellers’ market above 20%. The closest we’ve come to being balanced this year was in June at about 12%. March was really low (and slow!) at 3%.
In practical terms that means that houses tend to sit on the market longer and buyers have more time to shop and compare. Over the past year this has also meant that by waiting, they may have seen the prices falling as well. It sounds like a good thing for buyers, and generally speaking it is – hence the name. At the same time though, it’s like having too many choices. We may be inclined to over-think the situation hoping for the perfect house and perfect price. We’ve seen some good deals collapse because of “nervous” buyers.
The next few months should be interesting. With indications that interest rates may be on the rise soon, it may spur those buyers who’ve been watching and waiting to jump into the market before they rise too far. It will also be interesting to see if our prices have begun to level out. Some of the “hotter” markets in BC are expecting up to a 6% increase over the next year. My experience in Powell River is that we tend to lag a little behind those markets and don’t see the same spikes in prices either up or down.
A Good Time to ‘Lock-in’
Thinking of buying? …or perhaps you’re pre-approved for financing with a lender already. Last week, Rachelle Ford, (604-483-4878) our “in-office” RBC mortgage broker advised us to let our clients know that there is upward movement in interest rates already. It’s a good idea to check the expiry date of your “locked-in” rate if you’re thinking of buying in the near future. If the closing date on the sale is after the expiry, the expected rate will not be in effect. A new rate will have to be negotiated. This could delay or even negate the sale if the new rate puts your dream home beyond your price range.
If you’re thinking at all about buying, it’s a good idea to see your mortgage broker for advice about financing the purchase.
Love That Creek!
The idea of a creek flowing through my yard brings images of a pastoral setting with the quiet sound of water flowing and bird song amid a backdrop of sun filtering through the trees. If you’re thinking of buying a property with water running through it, be familiar with the Riparian Areas Regulation. Any construction or alteration of the land near the creek is subject to a 30 meter setback which may be reduced after an inspection and report by a Qualified Environmental Professional (QEP) depending on the waterway itself and the nature of the alteration you’re considering. If you’re only planning to enjoy the creek without alteration, you have no worries. However, if you’d like to build a shop or do some landscaping near the creek, you’ll need the inspection which can run into a few thousand dollars. The report may require that work be done to ensure the safety of the creek for your project to move ahead.
When the yardwork and vacuuming get to be too much, these half-duplexes at the top of Westview can be a very comfortable fit!
- 2 bedrooms/2 baths
- wheelchair accessible, with garage
- adult-oriented neighborhood
A – 4042 Savary Place
Call me for a showing!