Our friend Marty Pospischil a realtor in West Vancouver just shared the market report for his area which I wanted to review.  House prices there have increased 17% this year alone and up 36% in the past three years!  The off shore money flowing into this are is unbelievable, the average price for a home is now $1.2 million….naturally Nanaimo home sellers are wondering, “is this money going to overflow into our market?”  This does not seem to be happening, in fact since February the number of homes listed for sale has increased 15% every month, while the number of homes sold has remained about the same.   You can see this as you drive around Nanaimo, more and more homes for sale.  the question is not :what is your home worth, rather it is “what will the current market realize?” It is a good time to review how important it is that your home sell this year.  It might be worth removing your home from the market and staying.  If however you do need to sell, you need to get ahead of this market and make your home stand out, both in price and condition.  Call us anytime to review your personal situation.

The report from this month shows the number of single family homes sold declining 29% from the same time in 2010 to 87, compared to 123.  At the same time the inventory is on the rise up to 645 homes for sale a 10% increase from last year.  Put these two factors together and the days on the market is also climbing to an average of 51 days.  So how do you make your home stand out?

1.  many buyers today tell us the homes they see are “tired”.  Old carpet, older bathroom fixtures, just overall lacking in appeal.  Take some time to really look objectively at your home.  Painting can make a huge difference and does not cost alot of money.  You should expect to invest about 1% of the expected sale price in improvements.

2  curb appeal(or lack of).  If a buyer can choose between more than 10 homes that are similiar then why would they bother looking at a home that is not well cared for?  Cut the grass, trim the weeds and get some bark mulch!

3  if none of this is possible, then adjust your asking price accordingly to allow the next buyer to get these things done.

If you have any questions about the real estate market please give us a call.

Oh by the way, we are never too busy for your referrals.

Sometimes when looking for a home, it need improvments that would make a big difference for the new owner.  It could be a new roof or flooring perhaps, however this is an unplanned expense.  One idea is to buy a home that includes the cost of these improvements.  Here is how it would work.  If the home was $250,000 with 5% down payment the monthly mortgage would be $1,147.50/month.  If you added $20,000 for the cost of the improvements to the mortgage, the monthly payment would increase $91.80/month.  Where elese could you get a home improvment loan of $20,000 for $91.80/month?  All of these numbers are based upon a 3.89%, 5 year term, 30 year amortization.  Buyers will need to get quotes for the work that is being planned and the work itself needs to be completed within 90 days of taking possession of the property.  By making the improvments part of your mortgage you can get the home you want and get the improcments done right away.  To find out more call Julie at 250 668 4420, or visit the website www.mindovermortgage.com

This is a preliminary report on homes sales in February 2011.  The board is reporting 89 single family homes sold.  In the same time period in 2010 there were 93 sales, 2009, 69, 2008 127 and 2007 136.  Certainly the volume of sales has declinded from the peak years and now seems to be in a holding pattern.  Here is how the numbers breakdown.  19 homes sold under $300,000, 23 sold between $300 and $350,000, 18 between $350 and $400,000, 20 between $400 and $500,000 and 9 sales over $500,000.  70% of the market is under $400,000.  Solid well priced homes between $325,000 and $365,000 are selling quickly, sometimes in multiple offer situations.  There are many different markets within the City and knowing where to price your home to sell has never been more important.  If you are considering selling this spring call us for a confidential review of the market value of your home.

Hard to beleive the first month of 2011 is over…so whats new?  After climbing for the last three months our average price was a single family home declined…to $340,000.  This is the same average for December 2007,while listings are up 10%  to 435 and sales are down 13% to 55 units sold.  Of the 55 homes sold three were over $600,000.  Apartment style condos meanwhile show listings up 50% from one year ago to 242 and accordingly the average days to sell is up 67% to 146 days.  All multi family developments are reporting slower sales, one of the reasons is the drop in buyers from Alberta.  The falling prices in sunbelt areas of the United States have resulted in buyers downsizing in their current city and then buying a second home in Arizona.  We feel this is the major cause of this slowdown and until prices rise in the US we see no change in this trend.  As every day goes by more listings are coming on the market, if you are considering selling your home call us now for an accurate and realistic property evaluation.  More listings and fewer buyers means pricing your home correclty is more important than ever.

Effective March 18, the following three changes will be in place.

• Reduce the maximum amortization period to 30 years from 35 years.
• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85% from 90% of the value of their homes.
• Withdraw Government insurance backing on the home equity line of credit.

What impact will this have?  A $300,000 mortgage over 35 years = $1,323/month, the same mortgage over 30 years = $1,428, about an extra $100/month.  However it is $37,000 of less interest over the life of the mortgage.  The governments plan is to help home owners build equity sooner in their homes by paying less interest.  This will allow home owners to better prepare for retirement which is where many people rely on the equity in their homes.  If you are planning on buying a home this spring now is the time to pre qualify for the 35 year term which is still available until March 18.

1.  Setting the Price Too High, home sellers often assume their house is the one that has kept its value while others in the area have dropped.  Or they believe the condition of their home or the improvements they have made place it above the competition.  Home prices are based only what a buyer will pay not what a seller wants.

2.  Forgetting to Clean, one of the quickest turn-offs for buyers is to see someone elses junk in a home just when they are trying to picture themselves in it.  They also don’t want to see fingerprints on the walls, dust on the miniblinds or dishes in the kitchen sink.  The reality of selling your home is that you cannot live the way you usually do.  Consider hiring a cleaner to get your home ready to sell, ask us for a list of reliable cleaners.

3.  Forgetting to De-Clutter, Buyers are looking at homes becasue they are trying to see if the space and amenities will accomodate their lives.  If they walk into a home in which hockey sticks and running shoes fill the foyer and the closets are over stuffed with boxes, the buyers will assume the closets do not have enough storage.  Clean things up and more items to the garage or rent storage.

4.  Not Letting Buyers In.  You know how inconvenient it can be to have your home presentable at all hours, sellers sometimes try and limit the hours but home will typically skip your home if they cannot get in when they are ready.  Buyers who work full time need to come in at dinner time or on the weekend.  The easier your home is to see the more likley your home will be shown and be sure and leave when the buyers arrive.  Buyers are uncomfortable when sellers are home and tend to leave quickly.

5.  Spending too much on Remodeling. Be careful doing a complete kitchen or bathroom renovation before listing your home for sale, they may help your home sell faster but not for more money.  Try low cost improvements, like replacing the kitchen faucets or painting cabinets.

Ask us about our home staging service which can highlight the changes you need to make.

Ozzie Jurrock, the BC based real estate investor, in his latest newsletter had some information about this important topic.  January 4 2011 the information will be out for the coming year.  There is a good website with you tube videos, the address is www.bcassessment.bc.ca/pages/default.aspx.  You can dispute your assessment only until January 31, 2011.  This year more homes sold at or close to assessed value, previously in a rising market everyone agreed that these numbers were behind the current market.  What will 2011 bring?  Today we understand mortgage rates are going up, they can’t go any lower so rising rates should not be a surprise.  If you would like our help with your assessment please fell free to call where are here to help with any real estate questions you have.

We usually find there are certain items around any home that need to be repaired or replaced before listing the home for sale.  These are normally cosmetic things, like paint or landscaping.  Sometimes a home need more extensive changes.  We are currently working with a local contractor to “lift” a home.  This house in lower Lanztville was built 30 years ago, shortly sfter it was built some settling occurred in the front area by the garage.  Now that the house is vacant it became clear that this settling needed to be repaired.  The house has been lifted off the old foundation and now work is underway to re build the foundation which will once again make the house level.  This is not a normal process however it does highlight the need to work with a full service realtor who can find local contractors who can handle most any repairs that are needed.  Whether your home needs a special “lift” or a fresh coat of paint we have a list of reliable suppliers able to handle any job in a professional manner.

We recently received information from the real estate foundation about this item.  Title insurance is an insurance policy provided by title insurance companies that protects residential property owners and their lenders against losses related to a property’s title or ownership.  Some of the coverage provided includes: survey errors and errors in public records; losses related related to improvements made without building permits, existing liens against the propertys title for unpaid debts by the previous owner.  It will also cover fraud and forgery and encroachment and unregistered easement issues.  Title insurance is usually purchased by a buyer at the time of purchase, although it may be purchased anytime after.  The insurance cost, generally a one time fee is usually determined by the property’s value and depends upon the chosen provider.  Given the relatively small cost of this insurance we recommend asking your lawyer if title insurance is right for you.