After a big rush to buy in April, buyers backed off slightly in May with sales slowing down to 27 from 40 in April. Sellers must have noticed all the hungry buyers out there because they responded heavily in May with 74 new listings up from an already strong 60 in April. With lots of inventory available, buyers may settle down a bit, but I don’t think it will be wise to take a wait and see attitude with good-looking listings when they come on.
With a recent drop in the prime lending rate to 0.75% and the major lenders adjusting their rates downward, it looks like we can feel fairly comfortable that rates won’t be climbing any time soon. With cheap money available and prices appearing to be at the bottom of their slide and possibly rising, it’s a good time to be buying in Powell River. Economists are saying that the negative effects of the drop in oil prices should be contained to the first two quarters of this year and the economy should start chugging along in the second half of the year.
Advice for Buyers in an Active Market…
As noted earlier, the market has been very active. In this kind of market, buyers cannot afford to be complacent. You need to be as ready as you can be. We’ve seen several sales recently with competing offers – more than one buyer wanting to buy the same house.
If that happens, your REALTOR will inform you that there is another offer(s) coming in on the one you were planning to buy. Instead of the usual back and forth on price, you’ll have to decide what your final and best offer will be – often within the day. This will be submitted to the selling realtor along with the other offers for the seller to choose from.
Price won’t be the only factor the sellers will consider. Often a lower priced offer will be chosen over a “subject to sale of house” offer because it’s more certain and no waiting for your house to sell is involved.
“All cash” offers are very strong because there are no subjects at all in the contract. To make such an offer, you must feel pretty comfortable about the house and your situation. (Can I get insurance? Am I prepared to buy without a home inspection? Am I sure that I have the money to pay?)
The best way to be prepared is to know exactly what your financial situation is – Be pre-approved with the bank!. If you have a house to sell, is it possible to get bridge financing? (Do I have enough equity in my house to allow a short term mortgage on the new house while you wait for your house to sell?) If bridge financing is not available, get your house on the market at a realistic price so it will go quickly and be well-informed about what you’re looking for so you can move quickly once your house is sold.
I’ve been involved in several “competing offers” in the past few months and I’m happy to give you advice if you’re preparing to jump into our very active market. Please call any time.
Life on the Water!
- 4 Bedr/2Bath -1982 sf with level waterfront access to beach
- 1/3 acre with gardens and patio
- Nicely updated and ready for you!
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