The Sky is falling ??
This summer has been slow for home sales - as we witnessed an end to the 'seller's' market.
We are back to our typical balanced market with selling times averaging 45 - 90 days. This will bring stability and predictability, producing a busy fall market and busier spring market with winter and summer slowing considerably.
The last 2 weeks have already produced a noticeable increase in activity as autumn approaches.
Housing inventory has fallen - which is good for sellers and helps firm prices. I am already seeing a levelling out of the summer price decline. Economists are predicting a further Canada wide settling of prices but I see the strong demand for BC real estate bucking that prediction.
Banks have dropped their mortgage rates - after the Bank of Canada prematurely raised the prime rate. The best 5 yr mortgage rate is 3.69%. However, bank lending practises continue to be tight - and people with less than stellar credit ratings continue to have trouble qualifying for mortgages.
The HST has had an impact on new home sales and builders are offering a variety of incentives to get their product sold. The HST has also impacted used house sales as some buyers were under the impression that all homes had an extra 12% tax attached to it - which is not the case.
September & October are going to be busy months sales wise as pent-up demand will reduce the listing inventory.