Perhaps you have noticed some new “For Sale” signs in and around your neighbourhood. Perhaps you have also noticed that these signs have been up for longer periods of time than in the past, and SOLD stickers are not adorning the sign until weeks, and even in some cases months, down the road. What you maybe also interested to learn, is that even with longer marketing periods, real estate sale prices are on the rise!
As predicted, the real estate market seasonally cooled off at Christmas and into January. January sales were slower; yet prices continued to increase – not fall as many expected. February was an active month; the benchmark price for detached housing went up 9.9% while attached properties rose over +10%. This is in line with 2006 averages where we had a 10% increase in detached homes and a 15.4% increase in attached properties. Price increases have been supported as the result of market changes, such as the introduction of 30, 35 and 40 year amortization mortgages, the expected launch of two new insurance companies into the Canadian mortgage sector, and finally the increased thresholds for the First Time Home Buyers’ Program announced last month.
Despite the inflation of prices, properties are requiring more marketing because they are staying on the open market longer. Good marketing helps ensure that sellers profit. This market is best illustrated by two properties that recently sold. There was a property that had been on the market for 107 days during the slower months of December and January. Then in February, with no change in price, there were multiple offers and the home sold $25,000 over the asking price - This was in Central Lonsdale.
This is not an isolated case. It happened again this week with a property that was on the market for 92 days, and then suddenly three offers come in and it too sold over the asking price. I predict that the Spring Market will continue to evolve in much the same fashion and will remain active with a healthy increase in inventory, which will ultimately allow more people to enter the market.
Please contact me if you are interested in learning more about changes occurring in the real estate market. If you or someone you know is interested in buying or selling real estate, I will be happy to assist with services and specialized knowledge.
Joel Carcone, Re/Max Crest - North Vancouver: 604-787-2052