A headline in the Oct 27 issue of the Peak stated, Residential Housing Market Rebounds, Average Price of Single Family Home Rises. It goes on to note that the average price for a single family home in Sept 2013 was 17.2% higher than in Sept 2012. At face value, this statement should make homeowners feel great: “The value of my home has increased by 17.2%!” Home buyers, on the other hand, might think, “I’d better get moving on buying a house right now before they go any higher!”
Note to self: Take averages with CAUTION! Recall from your math classes that averaging is simply a way of taking a string of values and reducing them to a single number. In this instance if 10 homes the same as mine sold for 17.2% higher this year over last, I could be more confident that the value of my house had actually risen. On the other hand, what if the houses that sold this year were better (more expensive) houses than the 10 that sold last year? This year’s average selling price would be much higher, but I don’t think I’d feel confident that the value of my house had actually risen.
The average increase over last year for the past 10 months looks like a view of the Rocky Mountains! It’s up and down regularly. The figure the Peak quotes is accurate and the by-line reflects that, BUT the headline is misleading. Average price could easily rebound the other way next month! Averages are useful, but must be interpreted with care!
Beware of Realtors with Predictions!
Last month I suggested that it looked like we were poised for some interest rate increases. Recent economic activity suggests that those rates may remain steady for some time yet. I don’t think “locking-in” your interest rate will hurt because you could always shop or renegotiate for a better rate if your locked-in rate was higher than the going rate. It just shows the uncertainty that we’re living with right now! If you’re thinking at all about buying, it’s a good idea to see your mortgage broker for advice about financing the purchase.
Official Community Plan…
I attended an open house on Oct 22 to reveal the latest draft of the OCP. While there, I didn’t pick up on the change in designation of the “old arena site” to Mixed Use: Commercial/Residential. I won’t get into it here. This will be a hot topic until it’s resolved. Check the Powell River Peak of Wednesday, October 30, 2013 for the details.
One thing I noticed that I hadn’t heard of before was the idea to take Highway 101 off Marine Ave. Instead it would be rerouted up near the Gun Range and onto Manson Ave and then via the ‘pole line’ to connect with the bridge to Wildwood. I expect there will be negotiations with the Highways Dept and consultation within the city before we see that come to pass.
My understanding of the OCP is that it becomes a plan for the future and when approved, changes in designation of certain areas only means that future development must be in line with the OCP. You can see the maps and various designations online at http://powellriverocp.com/
This 1912 home has maintained much of its historic beauty through a recent period of some neglect. A great ‘project’ home in an upcoming area!
5818 Aspen Ave
Call me for a showing or free market evaluation
Bill Bailey: 604 223-0811