It’s mid February and the shine of what was looking like a strong start to the year seems to have fizzled out. I’ll be the first to admit that I over-analyze the data and the market is not a straight line. There are up days and weeks and down days and weeks with so many things that can factor into this – the Olympics, hockey or football, the political scene, bank announcements and of course… the weather.
All in all, it’s a solid time to purchase. Rates are low at 4% for a 5 yr closed (In the USA it is right around 6%), the banks are forecasting very little change over the next 6-9 months and house prices are down.
The cost to borrow $100,000 at 4% with a 25 year repayment is $526/month
The island still holds a charm that Canadians are looking for and we do see our market fair better than others. Vancouver has an abundance of unsold new condos and Toronto is feeling the same pain. Fortunately we are not as heavily invested in the condo market and single family homes are the preferred purchase for most buyers.
The actual Spring market, when we traditionally see a surge in real estate activity, is just around the corner and even though the last couple years have not seen a wild increase, the number of sales does go up. I think it’s more about putting your home on the market when it is ready. A good solid presentation seems to override whatever the market is doing.
Nanaimo just had its first snowstorm but it was all melted before I could get my snow shovel out. The crocuses and snowdrops survived the 3 hours and 2 cm of snow and are continuing to show themselves. What a great place we live in.
I hope you managed to spend some time with your loved ones on Family Day – All the best for the rest of the month!
