By Jan van Lindert

In my previously published "Shuswap Market Update" I provided some insight in the Shuswap Real Estate Market for the timeframe January till March 2008. Also I provided some thoughts about whether or not we are experiencing a dramatic change. Time for an update now the April numbers are available. Below are some statistics for the Shuswap Area (provided by OMREB).

It is very obvious that the number of listings in April 2008 went up. The number of sales went down. Compared to last year there are more sellers and less buyers, which put the Buyers in a better position. These numbers show exactly what we are experiencing right now. Evidently Buyers don't feel the urge to make an offer instantly after viewing a home. There is more choice and the chance to miss out is slim.

But it is encouraging that the relative reduction in sales in April compared to last year is less than the relative reduction in sales in the timeframe January till March compared to last year's same period. This could prove that the long winter influenced the Buyer's behaviour during the first 3 months of this year.

Did our market come to an halt? Absolutely not! The 2 most important indicators, mobile homes and single family residential, do show reduction in sales, but with respectively minus 16.7% and minus 28.6% it is not a down fall as experienced in really bad markets. Unfortunately for Sellers there is more competition which leads to asking price reductions.

Price your home realistically. With more competitors in the market, buyers have a choice. When similar homes with similar features and the same level of maintenance are for sale, most likely the best priced home will sell. Don't sell your competitor's homes, because yours is overpriced! Further: remove clutter, clean your property and repair smaller damages. Your property condition will influence the emotional reaction of buyers to your home, perhaps as strongly as pricing affects buyers' intellectual side. For many people, the condition of your property will mean the difference between SOLD and REDUCED AGAIN.

But above all, be patient. In this market it is unlikely your home sells within a couple of days. Remember, OMREB statistics show that the average listing sells in 103 days (compared to 83 days in the first quarter of this year)!

Assisting our sellers and buyers in selling and purchasing their property is our profession. Our objective is to provide the highest service possible. To go "above and beyond" we provide you with information you might find helpful. For any question, please don't hesitate to call!

First Time Home Buyers (FTHB) often face the problem of the down payment. Most Buyers do not know that they may be eligible to use their RRSP's for their down payment, $20,000 for each spouse. Isn't that a great start to keep your mortgage payments a bit lower! For more information please check out http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/hbp/menu-e.html.

In some instances first time home buyers are exempt from paying property transfer tax. If you are a citizen or resident, have lived in BC for more than 1 year, the property you are buying is smaller than 1.24 acre and less than $375,000 in value, you're going to use the property as your principal residence and you have never owned property, you most likely are exempt from paying PTT. For more information please visit http://www.sbr.gov.bc.ca/.

When you buy a property in BC you have to pay Property Transfer Tax. The total amount is calculated as follows: 1% on the first $200,000 of the purchase price and 2% on the remainder. With average home values in the Shuswap of just over $350,000, the Property Transfer Tax is often about $5,000. Although in some instances a buyer could be exempt of paying PTT, there is a 99% chance that you wouldn't. But here is the good news: if you are moving because of a change of jobs, the CRA sometimes considers the PTT a moving expense (according to one of my clients who was audited by the CRA and was allowed to deduct the PTT). Although we don't guarantee this deduction will apply to you, at least it is worth looking into it!

Are you 55 or older, a surviving spouse or are you receiving a disability allowance or benefit, then you may be eligible to defer payment of your annual property taxes. It allows you to spend hundreds of dollars each month on fun things instead of paying taxes. For more information call our office or visit http://www.salmonarm.ca/ or http://www.rev.gov.bc.ca/.

In today's market real estate selling costs could become very costly. Before you sign a listing contract you should interview a so called discount real estate company as well. You may think they discount their services, but most likely you will be pleasantly surprised by the services they provide. Please give us a call and we will show you how much you can save! (250-832-0111 and http://www.4shuswaphomes.com/).

Please drop us a line if this information was helpful to you. If you are aware of more saving possibilities, please add your comment and help us helping others to save money!

Governments: 

• City of Salmon Arm:                                       http://www.salmonarm.ca/
• Columbia Shuswap Regional Dirstrict:               http://www.csrd.bc.ca/
• Province of BC:                                              http://www.gov.bc.ca/

Development/employement:

• Economic Development Centre                         http://www.salmonarmedc.com/
• Chamber of Commerce                                    http://www.sachamber.bc.ca/
• Employement center

Schools and busroutes:

• School district 83                                            http://www.sd83.bc.ca/
• Okanagan College                                           http://www.okanagan.bc.ca

Miscellaneous:

• Weather in Salmon Arm                                   

Is it the long Winter, lack of Spring or is the market turning? The fact of the matter is that in the first 3 months of 2008 the number of sales went down and the number of listings went up. Below are some statistics for the Shuswap Area (provided by OMREB).

No doubt that the market is slower than last year. But should we be concerned? My advise to home sellers is not to worry for 2 reasons. Firstly, we are comparing this years numbers with last years numbers and as we all know, the first 5 to 6 months of 2007 was an extremely hot Sellers market. Buyers were afraid to miss out and felt the urge to act immediately when a new listing came on the market. Secondly, this year's weather was colder than last year's. So far we have hardly had any sunshine and we had snow fall far into April. For sure weather conditions have an effect on buyer's behaviour. I also would like to cite OMREB's President who recently wrote:

Price your home realistically. With more competitors in the market, buyers have a choice. Similar homes with similar features and the same level of maintenance, most likely the best priced home will sell. Don't sell your competitor's homes, because yours is overpriced! Further: remove clutter, clean your property and repair smaller damages. Your property condition will influence the emotional reaction of buyers to your home, perhaps as strongly as pricing affects buyers' intellectual side. For many people, the condition of your property will mean the difference between SOLD and REDUCED AGAIN.

But above all, be patient. In this market it is unlikely your home sells within a couple of days. Remember, OMREB statistics show that the average listing sells in 86 days!