Sales in the Powell River residential real estate market edged up to 17 in February from 13 in January. That’s the same as a year ago and following a similar, if slightly lower pattern to 2018. Total listings on hand for February was 95 which is up from 93 in January and roughly 20% higher than this time last year. However, last year’s average listings available per month was 105, so I’m expecting to see some upward movement in inventory over the months ahead. Buyer interest is still there, but the declines in the bigger markets and mortgage rules have made buyers more tentative which has kept prices reasonably flat over the past year. The numbers are showing a balanced market for the second month in a row after several years in a sellers’ market. This suggests neither upward nor downward pressure on pricing. My prediction is that this will continue through this year with a general holding of prices. After three years of rising prices, it’s expected that there may be drop in prices at some point. Our major attractions to out of town buyers are lower prices and an attractive lifestyle for recreation, raising families and safety. These haven’t changed and we’re still seeing more than half of our sales going to out of town buyers.
Claiming the Sale of Your Home
When you sell your home, usually you do not have to pay tax on any gain from the sale because of the principal residence exemption. This is the case if the property was solely your principal residence for every year you owned it. This hasn’t changed, but beginning in the 2016 tax year, all homeowners were required to report the proceeds of the sale of their home – principal residence or otherwise. There are penalties in place, especially if capital gains are owing. Note that if you rented the home out for a period of time or it was not your principal residence, there may be capital gains payable. Don’t forget to report the sale either way! Visit the Government of Canada website for more information.
Grow Your Own?
Mortgage lenders would say, “Don’t!” Regardless of whether it’s legal or illegal, growing cannabis in your home may affect your ability to renew your mortgage and it may affect future buyers’ ability to get a mortgage. The upshot of this is that it devalues your property. Lenders are notoriously averse to risk, so for them it’s a matter of, “Why lend on a property that may have damage such as mold behind the walls? Currently there isn’t much information about how many plants it takes to cause damage and lenders don’t have much interest in finding out. It’s easier to just say no thanks to taking a mortgage on your property. If buyers’ can’t get a mortgage, then you are seriously limiting the number of people who are able to buy which brings down the value.
Horizon Real Estate Group!
Formerly the Josh Statham Home Team, we’ll be adding two new members to our team due to the success of our “Digital Curb Appeal” marketing resources. Offering high quality photography, video and a virtual interactive tour with every listing is setting a new benchmark for excellence in marketing your home for sale. Each of us works as an independent REALTOR® to provide exceptional service for the benefit of our own clients. Call me for a free market evaluation of your home and to hear more about our marketing services and the benefits they’ll bring. We call ourselves the Horizon Real Estate Group because we believe our high-tech, high-touch approach to marketing and service is well out in front and a look to the future for people wanting to show their home at its best! Check out my listings at billbailey.ca