There is a lot of confusion about the state of the Kamloops, B.C. and National real estate market. Buyers and sellers are trying to figure out when the right time is to make a move. Below I have included my 2008/2009 real estate market report. Click the link for the pdf version and also for those who cannot open the pdf there are images of the document.
In Kamloops, I continually talk to clients regarding the local real estate market and the factors contributing to the recent downturn. There are many predictions and opinions about the market. Below I have compiled a series of analyst opinions on the BC and national real estate market which in turn directly apply to Kamloops real estate. Hopefully you will find this information useful to your search, whether you are a home buyer, seller or just looking for some clarification.
Scotiabank’s senior economist Adrienne Warren says Canadian real estate prices will drop 10-15% nationally, with B.C., Alberta and Saskatchewan taking the brunt of the downturn. They predict that much of the runup in prices seen this decade will remain intact.
Canadian Association of Accredited Mortgage Professionals (CAAMP) report states that despite the traumatic American mortgage fall out, Canada has managed to steer clear of deflated markets. The Canadian system is supported by low and steady interest rates, better underwriting processes, different products and normal re-sale activity levels. “Canada is a financially conservative country where consumers are able to meet the terms of their mortgages and buying decisions are based on affordability,” said Dunning. “This contributes to a solid real estate market that will not experience the same drop off we see south of the border.”
Cameron Muir of BCREA believes BC could see an upswing in housing markets as early as spring 2009. This doesn’t necessarily mean that housing prices will increase. Consumer confidence in the market is predicted to stabilize and buyers will become more active in the market place.
CMHC see a further drop of up to 9% in 2009. Home prices in Kamloops and district have fallen so far anywhere from 10% and above to date.
Ozzie Jurock sees increased activity in Spring and sales lower in 2009 and calls for us to start thinking positively.
Other points of interest:
- Across the country, downward movement of house prices are only 3% year-over-year in the third quarter (compared with a 5 to 15% decline in the U.S.)
- International studies conducted by agencies such as the International Monetary Fund have found that Canada is still considered to be one of the countries where the housing market is least overvalued
- Canada’s housing market is also much less vulnerable given the very limited sub-prime mortgage activity (5% of outstanding mortgages compared to approximately 14% in the U.S.)
- The speculative sector is relatively small
- Housing affordability – which had deteriorated over the past two years – will improve with the recent significant rate cuts by the Bank of Canada and softer house prices.
They all agree that consumer confidence is one of the real estate market’s biggest challenge. There is a lot of uncertainty locally in Kamloops and in the world as a whole. Predictions are never certainties. There are a number of factors that affect consumer confidence and unfortunately this confidence is not only a local and national feeling but also a world wide concern.
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When it comes to the sale of your home, it is the little things that can go a long way to increasing the price you will receive. Most buyers respond positively to a clean, clutter-free home that is in good condition. The more effort you put into the appearance of your home, the more likely you’ll receive greater activity and possibly generating a higher profit.Over time, we become accustomed to our homes, often overlooking the eyesores and the list of honey-do’s that were never completed. Clutter accumulates.
There are numerous smaller, inexpensive things you can do to greatly improve the showing of your home. With a little elbow grease, and a little creativity, it is easy to keep your home in prime showing condition.
Prior to the listing, have a garage sale.
The rule is “less is better.” Clean. Organize. Discard. Donate. Pack all that you can. Clean out closets and storage areas. Donate old clothes and furniture to local charities. This will create a sense of greater space — and mean less to move. What about all those books and magazines that you do not want? Perhaps you can donate them to a local library, hospital or charity.
Set the stage.
Take full advantage of the areas in your home. Set the table with your best china. Create warmth and coziness in the living room, with a crackling fire. Put a pair of wine glasses and a vase of flowers on the coffee table in front of the fire.
Eliminate the odors.
Buyers respond less favorably to smells. Use cleansers of all kinds to make the home smell fresh, from carpet freshener to potpourri. Deodorize your cat’s litter box. Scoop litter daily. Put cedar chips inside the closets. Use the sense of smell to your advantage by having fresh-baked cookies or other baked goods on the kitchen table. People have both allergies and concerns when it comes to animals. If you have a pet, make arrangements to have it elsewhere when a home is being shown.
Ensure that all doors, cabinets and drawers open all the way without sticking or bumping into anything. Clean out the entrance hall closet. Move oversized furniture to a storage facility or garage. Entrances to all rooms should have an open flow.
Make the most of your views.
Put a screen or a basket of flowers n front of a fireplace if not in use. Make sure there is enough room for visitors to view out the windows. Remove any clutter around window areas. Clean windows
Create counter space.
Store away extra appliances. Put away dish racks, soap dishes and other clutter. Remove magnets from refrigerator.
Aim for neutral décor.
De-personalize your teenager’s room, the family room or other areas by removing wild posters or items that could be construed as offensive.
Increase the wattage.
Pay attention to the laundry room, kitchen and bathrooms. Prior to showing, turn on the lights in every room.
Place family photos throughout your home especially in living room, bedrooms and family rooms.
After you have completed these inexpensive tasks, stand back. Ask a friend to view your home. Is it warm and inviting? Does it look comfortable and spacious? Is the aroma pleasant? When you create a positive, warm environment it is likely your buyer will feel the same way.
The latest Kamloops Real Estate statistics for your reading pleasure.
Kamloops Real Estate, Comparative Analysis By Property Type For December 2008.
Kamloops Real Estate, MLS Activity Report For December 2008.
Kamloops Residential Real Estate Sales By Subarea For December 2008.
Kamloops Real Estate, Comparative Analysis By Property Type For the Year of 2008.
Kamloops Residential Real Estate Sales By Subarea For the 4th Quarter of 2008.