The reality of the real estate market
The reality of the market
House prices are starting to level out. We have approx. Double the listing inventory with half the sales. Sellers are motivated to sell and there are tons of people who need places to rent. Add the fact that mortgage rates are the lowest they have been in years and you begin to realize that is a great time to buy real estate. Canadian are cautious to buy right now because of the problems in the U.S. but in reality it is a fantastic time to be putting money into real estate. I have several clients who have purchased seconds homes in the Okanagan. They put 20% down, took out a 40 year amortization mortgage. They have their houses rented out for enough to cover their mortgage.
According to the latest numbers from the BC Real Estate Association, sales of homes dropped 40% in the Okanagan compared to the same month in 2007 and are down the same in Kamloops. In Chilliwack, sales are down 40%, and nearly the same, 36.5% on Vancouver Island. Yet, except for the far North, prices across the province have increased in the double-digits since last May, and were up 11% province wide last month. Naturally, it being human nature, buyers are reluctant to get into the very same markets they were hoping to buy into at this time last year. We have seen this before. Remember 10 years ago who people thought those condos at $135 per square foot in Yaletown were expensive. That $200,000 Okanagan lakefront was too much.
We are seeing a market correction right now. Take advantage of it!