My crystal ball says that we have to work twice as hard til 2013. Cameron Muir our economic geru from British Columbia Real Estate Associaiton says this may go on  for another 18 months.

There are always sales. There are always deals. But right now we have a buyers market and it is not balanced here in the Okanagan Valley yet. Wish it was but it may be a while.

So if you have a hankering to buy. You should do it when you find the house you want because prices are expected to stay where they are for a while. If you want to sell it’s all about the price right now. Where are you placed in your list of competition?

Either way you have choices. What is yours?

I imagine many of you out there are wondering about the market. Is it bad? Good?  Improving? This is the very question I am going to answer for you today.

The first thing I have to tell you is that you cannot compare province to province, city to city, or street to street. The market in each area of Canada is different and has it own growth and decline patters. However for British Columbia in general I can tell you that unit sales have risen approximately 12.9% as compared to this same time last year. As well to date the BC sales dollar volume has increased 16.5% , along with residential prices rise of 15.3%. These numbers may not be huge, but they are an improvement.

All of this means there is light at the end of the tunnel.  The market is not crashing, and the world is not coming to an end and.  In fact the bright side to this market is the decrease in mortgage rates. Mortgage rates have not been this low in many years. So why not take advantage of it!

Rates are on the rise but Dominion Lending still is quite competitive. See below:

Terms Bank Rates Our Rates
6 Month 4.45% 4.40%
1 YEAR 3.60% 2.64%
2 YEARS 3.95% 3.30%
3 YEARS 4.25% 3.52%
4 YEARS 4.89% 3.54%
5 YEARS 5.39% 3.59%
7 YEARS 6.29% 4.79%
10 YEARS 6.65% 4.99%
Rates are subject to change without notice. *OAC E&OE

Karen was able to listen in on BCREA’s chief Statisical Forecaster, Cameron Muir on the future of the real estate market. He provided us with a glimpse on what to see and what has happened in the market.

May was better than expected! We expecting a large decrease in sales but we are only slightly below last year which is good! We are now starting to stabilize. Buyers are coming back from Alberta and other areas of Canada. A drawback from our area of course is that the snowbirds can still buy very cheap (the word economical doesn’t seem to cut it).

Our area appears to be transition out of the doldrums and it is encouraging to say the least. We do have an elevated inventory and there are more listings appearing every day, however, it is also our traditional sales season. I do expect the numbers to start edging downward though as sales increase.

The US still has not recovered as quickly as they had hoped. But with that the good news is the 5 year fixed mortgage which was anticipated to come up should remain the same thru to the summer at any rate!!! Yeah! This should guarantee us affordability still with stable interest rates until fall.

Our one concern is that last year we started out the same and then flat lined from July until now. Sales were down and with it came a downward pressure on prices. In most cases prices are down to the 2006/2007 levels. We may bottom out in July and expect a lull at Christmas??? Who knows…Let’s just deal with today.

We are currently like a bouncing ball….2-3 weeks of activity and 2-3 weeks of lull. Because of that it is hard to grasp any real trends happening. If the summer doesn’t flat line (sounds like it’s a heart beat doesn’t it)and if we have even mediocre sales it will be a good sign.

As I mentioned above it is still too early for any consistent trends and we have to just look forward and see how spring/summer unfolds for all of us. It is still a very competitive market and it is all about ‘the price’. Too many beautiful towns with too many beautiful properties to sell….If you want your house to sell BE THE MOST COMPETITIVE ON THE MARKET. If you’re buying ‘up’ in this market then take a lower road on your sale because you’ll make it up when the market rises on your purchase.

It is so much more fun giving all of you good news as no one wants to hear the bad. But the truth is, if you want to sell right now, you have to be the best priced home on the market and you will sell. In a lot of cases that is the rule of thumb. Right now you can look at your 2006/2007 tax assessment and that is what houses are selling for. Sad but true.

We have to get through this year and into spring of 2012 before we are going to see a significant increase in sales. I ask you now….are you doing what it takes to get your place sold? My suggestion, let’s play hard ball and get it sold.

So no throwing of the tomatoes at me for the truth but feel free to give us a call to discuss any of this………….

Real estate is a huge investment and is one of the largest, most stressful decisions you will make in your life time.  For most, a decision you will have to make more than once.  Like with any major decision in your life you will have questions, questions that you wont know how to answer and thats why us realtors are here.

Today I have put together a number of questions that will cross your mind while in the process of purchasing a property.

1) Can you apply for a mortgage before you find a home? Yes! Many buyers apply for a loan and obtain approval before they find the home they want to buy.

Pre-qualifying will help you in the following ways:

• Generally, interest rates are locked in for a set period of time.  You will know in advance exactly what your payments will be on offers you choose to make.
• You won’t waste time considering homes you cannot afford.

Pre-approval will help you in the following ways:

• A seller may choose to make concessions if they know that your financing is secured.  You are like a cash buyer, and this may make your offer more competitive.
• You can select the best loan package without being under pressure

2)  What is required to qualify for a mortgage? Most lenders require that your monthly payment range between 25-28% of your gross monthly income.  Your mortgage payment to the lender includes the following items:

• The principal on the loan (P)
• The interest on the loan (I)
• Property taxes (T),
• The homeowner’s insurance (I).

Your total monthly PITI and all debts (from installments to revolving charge accounts) should range between 33-38% of your gross monthly income.  These key factors determine your ability to secure a home loan: Credit Report, Assets, Income, and Property Value.

3) What is amount required for a down payment? Most loans today require a down payment of between 3.5% and 5.0% depending on the type and terms of the loan.  If you are able to come up with a 20-25% down payment, you may be eligible to take advantage of special fast-track programs and possibly eliminate mortgage insurance.

I hope these question and answers help you in the buying process. If you any additional questions feel free to contact us via email mail@amosrealty.com or telephone 250 498-4844.