http://www.kamloopsrealestateblog.com/canadian-real-estate-rising-sales-housing-prices-2009/ Mon, 23 Aug 2010 03:35:24 +0000 hourly 1 http://wordpress.org/?v=3.0.1 http://www.kamloopsrealestateblog.com/canadian-real-estate-rising-sales-housing-prices-2009/comment-page-1/#comment-1633 OJ Thu, 01 Oct 2009 06:44:07 +0000 http://www.kamloopsrealestateblog.com/?p=3523#comment-1633 This surge in sales and rise in home prices will be temporary. I predict a slight increase in home prices until summer of 2010, and then re-adjustment downwards again. Here's my reasoning. Last winter's 'doom-and-gloom' economic news stories made many buyers AND sellers 'sit-and-wait' on the sidelines. As the news stories started to become more cheerful this spring, some of those buyers started to get back into the market again. Then, as humans normally do, as more and more people started to get back into the market and buy, our 'monkey-see-monkey-do' mindset kicked in, and so even more buyers who were sidelined joined in. This has caused a temporary demand issue, which is pushing up prices a bit. This will ease as more and more of those buyers buy and get out the market. Then we'll see sellers who didn't want to sell because of the lower prices before list their homes now (especially in Spring 2010), pricing their homes a bit higher because of the recent surge in sales activity. The only problem will be that at the same time as sellers get back in the game, the number of buyers (and so demand) will be dropping, which will push prices back downward. So my advice is this: IF YOU'RE A SELLER, LIST NOW! IF YOU'RE A BUYER AND YOU'RE NOT GOING TO BE SELLING IN THE VERY NEAR FUTURE (1-5 YEARS), GO AHEAD AND BUY NOW, BUT IF YOU WANT A LOWER PRICE WAIT UNTIL SUMMER 2010 OR IDEALLY WINTER 2010. The only problem with waiting is this: if mortgage rates increase (even a slight increase can do this depending on the amount being mortgaged), the lower prices may not offset the higher interest payments. This surge in sales and rise in home prices will be temporary. I predict a slight increase in home prices until summer of 2010, and then re-adjustment downwards again. Here’s my reasoning. Last winter’s ‘doom-and-gloom’ economic news stories made many buyers AND sellers ‘sit-and-wait’ on the sidelines. As the news stories started to become more cheerful this spring, some of those buyers started to get back into the market again. Then, as humans normally do, as more and more people started to get back into the market and buy, our ‘monkey-see-monkey-do’ mindset kicked in, and so even more buyers who were sidelined joined in. This has caused a temporary demand issue, which is pushing up prices a bit. This will ease as more and more of those buyers buy and get out the market. Then we’ll see sellers who didn’t want to sell because of the lower prices before list their homes now (especially in Spring 2010), pricing their homes a bit higher because of the recent surge in sales activity. The only problem will be that at the same time as sellers get back in the game, the number of buyers (and so demand) will be dropping, which will push prices back downward. So my advice is this: IF YOU’RE A SELLER, LIST NOW! IF YOU’RE A BUYER AND YOU’RE NOT GOING TO BE SELLING IN THE VERY NEAR FUTURE (1-5 YEARS), GO AHEAD AND BUY NOW, BUT IF YOU WANT A LOWER PRICE WAIT UNTIL SUMMER 2010 OR IDEALLY WINTER 2010. The only problem with waiting is this: if mortgage rates increase (even a slight increase can do this depending on the amount being mortgaged), the lower prices may not offset the higher interest payments.

]]> http://www.kamloopsrealestateblog.com/canadian-real-estate-rising-sales-housing-prices-2009/comment-page-1/#comment-1632 Glynn Williams Wed, 30 Sep 2009 13:17:52 +0000 http://www.kamloopsrealestateblog.com/?p=3523#comment-1632 I certainly hope for the rest of the provinces that the article is correct. Although real estate has remained strong here in St. John's, Newfoundland, the slow market throughout Canada has certainly had an affect here. People have been unable to sell and move home to Newfoundland as the market was not strong in their areas. Lets hope that it is Onward and Upwards from here! I certainly hope for the rest of the provinces that the article is correct. Although real estate has remained strong here in St. John’s, Newfoundland, the slow market throughout Canada has certainly had an affect here. People have been unable to sell and move home to Newfoundland as the market was not strong in their areas. Lets hope that it is Onward and Upwards from here!

]]>