April Newsletter
Spring Is In The Air… Sales and Listings Continue To Bloom
Here we are, spring is in the air and sales and listings are in abundance.
Here are some numbers to consider:
Greater
- January 2009 – 771 units January 2010 – 1960 units (up 154%)
- February 2009 – 1494 units February 2010 – 2517 units (up 68%)
- March 2009 – 2310 units March 2010 – 3190 units (up 38%)
As you can see, the number of homes sold has increased through the year. Even with the distraction of the 2010 Olympics, we saw very strong sales in February. It was in March 2009 that the real estate market began its current upward swing with 12 months of strong real estate activity.
Greater
- December 2010 – 9,880 units
- January 2010 – 11,180 units
- February 2010 – 12,396 units
- March 2010 – 14,566 units
- April 2010 - 16,396 units
These numbers show that the amount of news listings coming on the market, month by month, have increased significantly this year, but they are still far below the levels of 2008 while similar to those in the spring of 2009. In September 2008 there were 21,000 active listings on the market and in March of 2009 there were 15,705. In fact, the number of new listings that came on the market in March 2010 was 7,004 compared to 4,385 in March of 2009. While it is a significant increase it was somewhat expected given the impact the 2010 Olympics had on real estate activity. There was a general perception that it was best to wait until after the Olympics to buy or sell. Of course, interest rates and the HST may be having somewhat of an impact on the real estate market now.
So what is ahead in the months to come?
Interest Rates?
- After record low interest rates, we have seen increases in fixed interest rates over the last month. The fixed interest rates (with terms from 1 to 5 years, even up to 10 years) are tied to the bond market and are more of a function of equities markets
- The Bank of Canada’s key interest rate likely will increase over the remainder of the year starting in June and continuing through 2011. This is the rate that banks use to determine their variable rate on mortgages and it is controlled through the government’s monetary policy (related to inflation and the Canadian Dollar)
- If you are thinking about buying or making any adjustments to your mortgage I would recommend you discuss with your bank or mortgage broker about locking in an interest rate. This will allow you to keep a current rate in place for up to 120 days (depending on which bank) and protect against any rate increases while you are searching for your property.
HST?
- Comes into effect July 1, 2010
- Applies to the purchase of brand new properties. Buying a property already owned will not have HST on the purchase price.
- There are rebates, both for the GST portion and the PST portion of the HST. Please contact me to find out how they apply as it will depend on the purchase price and whether the property will be a principal residence.
So where will the real estate market go as we move through 2010? Having such a great global advertisement by way of the 2010 Olympics certainly won’t hurt. It further cements
I am here to help with any questions you have on market trends in your area. Whether you are buying or selling, let me do the research so you can make a fully informed decision. There are great opportunities in today’s market.
Have a friend or neighbour that is trying to make sense of the real estate market? Absolutely have them call me, I’m happy to help.
William Lew
604 862 1966 (direct
william@westsideliving.com or williamlew666 (skype)
Dexter Associates Realty
Do you know someone looking to buy or sell in the near future?
Please pass along my contact information. Your referrals are greatly appreciated.
This communication is not intended to solicit property already listed