SHUSWAP MARKET UPDATE
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).
NEW LISTINGS | |||
Jan-March 2008 | Jan-March 2007 | Increase/decrease | |
Acreages with House | 62 | 46 | 34.78% |
Mobile homes | 38 | 41 | -7.32% |
Residential | 262 | 222 | 18.02% |
Townhomes | 67 | 51 | 31.37% |
SALES | |||
Jan-March 2008 | Jan-March 2007 | Increase/decrease | |
Acreages with House | 13 | 28 | -53.57% |
Mobile homes | 21 | 29 | -27.59% |
Residential | 75 | 131 | -42.75% |
Townhomes | 21 | 26 | -19.23% |
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:
"Before everyone - primarily the media - starts preaching doom and gloom, the very positive performance of the BC economy must be factored in. New job creation and low unemployment are balancing off the hardships currently being experienced in the forest industry. A positive spin-off of the sub-prime fiasco in the US is that the Americans continue to reduce interest rates, which forces Canada to follow, at least to some degree. Mortgage rates in Canada are still very affordable, even if basic housing isn't. In the Lower Mainland, the listing volume is increasing, sales volume is declining and we're seeing some resistance to asking prices. To some degree, we are experiencing the same trends in the Okanagan while, at the same time, new product is under construction everywhere you look. Some people (and again the media) are predicting some significant reversals in property values. However, we still have buyers and a fairly strong sales volume. In my opinion, we should see a levelling of the average selling price, with more emphasis on affordability in the market, but I don't think we'll see a major decline in property values."
Here is my advice to motivated Sellers:
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!
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BC Home Sales Down in First Quarter
Vancouver, BC – April 18, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC dipped 1.8 per cent to $8.9 billion during the first quarter, compared to the same period in 2007. Residential unit sales declined 13.5 per cent to 18,635 units during the same period. The average MLS® residential price in the province reached $478,423, up 13.5 per cent from the first quarter of 2007.
“The housing market lost some steam during the first quarter,” said Cameron Muir, BCREA Chief Economist. “Eroding affordability has squeezed some potential buyers out of the market, while uncertainty about the duration and impact of a weak US economy and housing recession likely has some consumers sitting on the sidelines.”
“Despite weakness in the forest sector, economic fundamentals in the province remain strong and continue to underpin housing demand,” added Muir. “A 25 per cent increase in the number of homes for sale is providing home buyers with more selection and reducing the chances of competing bids on the same property.”
March MLS® residential sales volume fell 12.4 per cent to $3.48 billion compared to March 2007. Residential unit sales declined 22 per cent to 7,128 units in March, while the average MLS® residential price increased 12.3 per cent to $488,796 compared to March 2007.
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