Sales in the Powell River real estate market rebounded again in June, up to 42 from 27 in May. You may recall that we had a very strong showing of new listings in May which seems to have provided buyers with the ammunition they needed to find their dream homes. June’s new listings were down from the ‘high’ to a solid, but more normal level of 49. We may see a bit of a slow-down for the July – August transition as holiday activities distract buyers from their real estate focus. If you’re thinking of selling, this is a good time to get your home up and visible on MLS in preparation for an expected fall upturn to get into houses before Christmas. Call me for a free home evaluation!
Across Canada, property values are up 5.7% over the past year. We’re seeing evidence of some movement upward in our Powell River market this year as well. After a few years of falling values, the market activity this year suggests that we’re starting an upward climb. We’re still a popular place to be with low prices and a great lifestyle!
Why Not Rent?
In an article in the Financial Post last month, Johnathan Chevreau states that buying a home is the foundation of financial independence. His reasoning is that you have two choices for living accommodation: rent or own. Renting never ends and as he says, “you’re still paying a mortgage: your landlord’s!”
You can shorten the period over which you pay by taking advantage of annual prepayment privileges and possibly be “rent-free” in ten years. Granted, you will still have utilities, insurance, taxes and other costs, but you will also be building equity in your home as its value appreciates. Values move up a little slower in Powell River, but I remember buying our first family-sized home in 1980 for $72,000. At that time there were few homes for over $100,000. That one is currently on the market for over $300,000.
There are a few benefits to having a paid-off home. First, if it’s your principal residence, then you pay no capital gains on the investment when you sell. Second, if you need to, you can use the equity in the house as security for home improvement loans for the growing family or reverse mortgages later in life. Finally, when it’s time to downsize, there’s a good chance that the larger family home will provide for a smaller home and some spending money on the side. Call me to see what’s in your price range if you’re thinking of buying!
The New Asbestos?
A McLean’s Magazine article on infestations by Japanese Knotweed in BC caught my eye last month. This invasive plant has been causing huge problems in Britain and is starting to create a problem in BC as well. It grows and spreads very rapidly, is difficult to eradicate and the roots cause damage to concrete. It will very quickly overrun a garden or lawn area.
Britain labels it a controlled waste which means that it must be dealt with by professionals which can be very costly. Another article I read suggests for residential home owners, the use of herbicide over a 3 year period can be the least expensive means of dealing with it.
In Britain, lenders and insurance companies are beginning to look more closely at mortgaging or insuring properties with Japanese Knotweed infestations. This is when is becomes troublesome for owners and buyers as the abatement costs begin to add up. Proper abatement for a residential property in Britain is estimated to be around £10,000 . I haven’t paid that much attention to invasive plants in the past, but this is one I’ll be keeping an eye out for!
Cute and Affordable!
- 4 Bedr/2Bath -2038 sf including 2 bonus rooms
- 1 acre lot near Mowat Bay
- Neat, tidy and ready for you!
Call for a showing!