There’s been a definite change in the Powell River real estate market since the early spring of this year. Sales have slowed considerably although the fall market is off to a good start in August with 39 sales – the highest since last October. The Spring market was pretty flat, so this may be a last burst before the usual winter slowdown. Prices seem to be flattening out as well. We’re holding at about 10% above last year since the spring of this year. New listings at 41 have fallen off since a high of 54 in May which has pushed us back into the Seller’s market on paper. Longer days on market and more frequent price reductions are pointing to a more balanced market though. With interest rates holding for this month, we may see continued solid activity through September and October before the usual slowdown for the winter months.
Boomers as Buyers…
Seventy percent of BC ‘baby boomers’ own their own home and 26% of those have more than half of their retirement savings tied up in real estate. Many of those say that they will downsize. In order to cash in on their equity in their current home, many will consider moving to other areas or get into something smaller like a condo. This is one of the forces that has been driving the Powell River market (and others) in recent years. This is a good source of optimism for homeowners in the Powell River area. Even though we’ve seen our hot market slow down in recent months, the forces improving our real estate investments are still at work and probably will continue to be in the future. Our prices are good and we live in a great community!
Mortgage Defaults down in Vancouver…
Mortgage defaults have been a big concern for government in recent years with the rising household debt. Mortgage rules have changed to require buyers undergo a “stress test” by qualifying at a rate 2% above what they will ultimately receive to provide borrowers with a buffer in the event of rising interest rates. However, delinquency rates (3 consecutive missed payments) in Vancouver which are a precursor to mortgage defaults are at the lowest they’ve they’ve been in many years. It’s encouraging news, but it’s also true that in a rising market, mortgage defaults are fewer because owners can generally get their money back out by selling their home. The real test will be when interest rates begin to rise and prices begin to fall off – which we have been seeing in many of the lower mainland markets for the past several months.
Mobile With Shop and Suite on 1.4 Acres
7411 Covey St, Powell River, BC
2 bdr/1 ba + Studio Suite
Large Lot 5 minutes from city center
Regional District taxes
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