Useful Information And Tips For Real Estate Buyers

My Opinion On The Kamloops Real Estate Market

January 29, 2009 Kirsten Mason Information For Buyers, Information For Sellers, Real Estate Information

Over the past couple days I have been through a whole variety of single family homes in Kamloops; upwards of 25 or so listings. I have found that in today’s market the pricing of these properties is all over the place. It appears that there is no consistency in the pricing of listed properties and I think this is because of either the home seller or agent confusion.

First, in my opinion, since the market has dropped some sellers are stuck at 2007 values, where homes were 10% or so higher than today’s market value. We were living in a real estate bubble where housing prices “would never go down” or “buy now or be priced out forever”. It is a fact that when we are in the midst of a housing bubble, people feel like it will never end, probably because of human nature. It is easy to get caught up in the euphoria of it all. I have to admit, that was the feeling I got from a lot of people around me, but I personally felt the change coming. We are now getting back to reality and working towards a balanced market, but are still far from it. Sellers have to price their homes competitively to sell, there are far more homes rejected from the market because of price in comparison to the number of homes that sell. To get your home sold, price your home right from the beginning. If you as a seller want to reduce, approach your agent, they should welcome the idea.

Secondly, there is this belief out there that prices will return to previous levels in the spring. This is felt by some sellers and Realtors alike. I have a very hard time believing that this could be remotely true. With the incredible uncertainty in today’s economy from job losses to a lack of confidence in the markets, there are no indicators out there that show that the market will return to previous levels anytime soon. This is my opinion of course.

The encouraging news to sellers is that over the past couple weeks I have seen an increase in the number of buyers looking to purchase a home. There are always people that have to sell their home and buy another. The Kamloops Real Estate Board has been reporting more sales lately than we saw last month. The statistics will come out in early February and I will include them here.

If you are thinking about selling your home, my suggestion would be, get it on the market sooner rather than later. There are a number of sellers wanting to go on the market in the spring. Beat the rush and get your property on the market and advertised to the public before the spring rush and increased competition.

Understanding Market Conditions

January 23, 2009 Kirsten Mason Information For Buyers, Information For Sellers, Real Estate Information

Numerous factors affect the real estate market. There may be more buyers than sellers. There could be more sellers than buyers. Interest rates, employment statistics and pricing. The supply of resale and new homes are also considerations when selling a home. Generally speaking, there are three types of markets that affect the sale of your home. Understanding each of these can make a difference to your bottom line.

Buyers’ Market
Description: There is an abundance of homes on the market. Supply exceeds demand.
Characteristics: Many homes available for sale. Fewer buyers than homes. Homes remain on the market longer. Stable prices. Prices may also drop.
Impact: Less panic in buying. Buyers shop longer for homes. Upon negotiation, they often have more leverage.

Sellers’ Market
Description: There are more buyers than homes available.
Characteristics: Few homes on the market. Many buyers. Homes are sold quickly. Prices often rise.
Impact: Home prices are higher. Homes prices often rise. Buyers purchase quickly, and tend not to shop as much. Multiple offers are common. Sellers may prefer offers with no-conditions.

Balanced Market
Description: There are roughly the same amount of buyers, sellers and number of homes on the market. Supply equals demand.
Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.
Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.

We have seen exponential growth in the Kamloops real estate market over the past five plus years. Often buyers would have little time to place an offer to purchase a property because of the sense of urgency in the market. Multiple offers was commonplace at that time. This fortunately for buyers has changed recently with the economic downturn. Buyers have time on their side and an abundance of homes to chose from. Today in the Kamloops real estate market we are seeing a strong buyers market. It will not be a buyers market forever, but it is expected that it will be this way for a while. Eventually, the market will cycle into a balanced market, which we have not seen in quite a number of years.

An RRSP Can Help A First Time Home Buyer

January 13, 2009 Kirsten Mason Information For Buyers

A federal program is in place to assist first time home buyers with the purchase of a home. Under the federal government’s Home Buyer’s Plan, you can use up to $20,000 in RRSP savings ($40,000 for a couple) to finance a down payment on a first home. You are then required to repay your RRSP over 15 years.

You have to ensure that the RRSP funds have been deposited for at least 90 days. You will also have to sign an agreement to buy a new or resale home. Buyers have to qualify the home purchase.

Depending upon your situation, it might be to your advantage to access savings through the Home Buyers’ Plan. For example, if you had already saved $20,000 for a down payment – and assuming you still had enough “contribution room” in your RRSP for a contribution of that amount you could move your savings into a registered investment at least 90 days before your closing date. Then you could withdraw the money through the Home Buyers’ Plan.

Your $20,000 RRSP would then count as a deduction for the year. You could also use any tax refund you receive to repay RRSP or other home buying expenses.

Many home buyers looking to purchase a home in Kamloops are trying to find ways to ensure they have an adequate down payment. First time home buyers can definitely put this technique to use. Ensure, prior to making any major financial decisions, to check with your financial advisor, lawyer or tax specialist. These professionals can determine whether this strategy is practical for your financial situation.

Home Buying / Hunting Tips

January 13, 2009 Kirsten Mason Information For Buyers

For up to date Kamloops and surrounding area home listings click here.

You have established your budget. You have been pre-approved for a mortgage. You have contacted a REALTOR to assist you with the purchase of a home. Now the fun, and evaluation begins. You will probably be looking at a few homes before you decide on the perfect one for your family. Before you decide to purchase that home you have absolutely fallen in love with, be sure to be objective in your decision. On appearance alone, the fireplace, the new flooring, paint job and new carpeting create a warm and inviting feeling. Yet, is the home really that perfect? Take a deep breath. Take some time to think about the bigger picture of the home in terms of your needs. Carefully consider whether this home offers the features that will last beyond the first impression. Here are some essential factors to consider:

* Location is a significant factor in your choice of home. An established community, with a good reputation, a low crime rate and well-maintained homes, maintains home values. A garbage dump, industrious buildings disposing bad odours and major freeways surrounding your neighborhood are unattractive and disruptive to a peaceful lifestyle. Many communities within Kamloops have positive and negative aspects about each and every one of them. Ensure you are informed about every area that you are interested in.

* Also consider availability and cost of access to public transportation, major roads and highways. This is especially important when considering properties outside of Kamloops.

* Also consider the condition of public areas such as streets, sidewalks, parks and recreational facilities.

* Public services should also be established including street cleaning, snow removal, garbage collection, and emergency services.

* You will also want efficient access to medical services including hospitals, doctors and dentists.

* Be sure that schools and related school services are also within easy access.

* Recreational, shopping and entertainment needs should also be considered.

Buying a home is a big job and there are many things to consider. With the Kamloops real estate market being a lot slower, buyers have more time to make an informed decision on a purchase. Before making an offer on a home take the time to look over the home carefully and really consider the floor plan and how your furniture will fit. Ensure your Realtor shows you the comparable homes on the market in your chosen area. Remember, often homes look much better in person than they do in pictures on the MLS.

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