I often hear comments about why home sellers and buyers are frozen in their tracks right now. Here are some of the things I am hearing and my responses on why it might not all be true:
Comment:
It's not the time to buy.. prime rate is dropping and I will wait until it hits bottom.
Response:
If you have a crystal ball, I would love to borrow it! Having a husband who is a mortgage specialist in Lethbridge, I have learned that even those in the know don't know when, how much and what direction rates will go. This excerpt from yesterday's Toronto Star says it all:
"Canada's big banks passed on the full value of the Bank of Canada's quarter percentage point interest rate cut yesterday, making it cheaper for consumers and businesses to borrow.
"The outlook for growth and inflation in Canada is now more uncertain than usual," the bank said in a statement after reducing its overnight rate to 2.25 per cent.
Canada's big banks followed suit late in the day, cutting their prime lending rates, the basis for many loans, to 4 per cent.
What kind of insanely cheap rate are buyer's looking for... it really doesn't get much better than this does it? Good rates, hundreds of homes to choose from... take your pick!
Comment:
It's not the time to sell. My home's value is not at it's peak and I will wait it out.
Response:
If you are moving laterally within a market, you aren't going to feel the effect of a lower market value of your current home as you will be replacing it with a home valued within the same type of market. We all know that real estate is cyclical. If you are looking to upgrade, you will make your money in your next home when the market swings upwards again. And what a fantastic time to buy... have you ever seen a better selection!
Comment:
The economy is tanking and I will squirrel my money into GIC's and bonds rather than invest in real estate.
Response:
Are you aware that Lethbridge currently has a 0.8% vacancy rate? Are you aware that rents have been steadily increasing and that all you need to do to get your property rented out is whisper to your neighbor that you have a home for rent? Oh, and did I already mention that it's ridiculously cheap to borrow money right now?
So, If you really must wait, then do so. I'm not sure who said freeze or why...but I would suggest looking through the cloud of bad press and eternal pessimists and see the golden opportunities lurking.
Visit us for more information on Lethbridge Real Estate
| 2008 | 2007 | 2006 | %INC/DEC | |
|---|---|---|---|---|
| [ 2007 - 2008 ] | ||||
| Total # of Listings [Month] | 460 | 495 | 393 | -7% |
| Total # of Listings YTD | 5100 | 4083 | 3523 | 25% |
| Total # of Expired Listings [Month] | 236 | 82 | 59 | 188% |
| Total # of Expired Listings YTD | 1205 | 394 | 519 | 206% |
| Total # of Sales [Month] | 228 | 197 | 274 | 16% |
| Total # of Sales YTD | 2201 | 2608 | 2870 | -16% |
| Total Sales Dollar Volume [Month] | $55,895,858 | $47,672,493 | $47,709,152 | 17% |
| Total Sales Dollar Volume YTD | $544,337,729 | $606,246,278 | $481,570,578 | -10% |
| 2008 | 2007 | 2006 | %INC/DEC | |
|---|---|---|---|---|
| [ 2007 - 2008 ] | ||||
| Total # of Listings [Month] | 535 | 535 | 358 | 0% |
| Total # of Listings YTD | 4641 | 3588 | 3130 | 29% |
| Total # of Expired Listings [Month] | 175 | 63 | 46 | 178% |
| Total # of Expired Listings YTD | 971 | 312 | 460 | 211% |
| Total # of Sales [Month] | 236 | 296 | 324 | -20% |
| Total # of Sales YTD | 1974 | 2411 | 2596 | -18% |
| Total Sales Dollar Volume [Month] | $56,267,737 | $73,289,357 | $56,357,043 | -23% |
| Total Sales Dollar Volume YTD | $488,365,033 | $558,573,785 | $433,861,426 | -13% |
Here's how the month of June stats looked:
Total # of Listings (Month) - 653 (Up 30% from June 2007)
Total # of Listings (YTD) - 3437 (Up 36% from 2007)
Total # of Expired Listings (Month) - 170 (Up 240% from June 2007)
Total # of Expired Listings (YTD) - 642 (Up 228% from 2007)
Total # of Sales (Month) - 279 (Down 13% from June 2007)
Total # of Sales (YTD) - 1436 (Down 20% from 2007)
Although it appears that the number of expired listings (month) is still astronomical compared to last years data, it is actually showing signs of improvement when compared with the May 2008 stats. And although sales for the month are down 13% for June compared to 2007 stats, they are again showing signs of improvement when compared to May sales that were down 32% from previous years numbers.
What does all this mean?? It appears that the market is slowly, but surely correcting itself. It also teaches us that we may not be wise to compare to last year! Really... is it a fair comparison to make?? Last year was off the charts and comparing to those skewed stats will only keep us from moving forward today!
Seller's still need to be diligent in pricing a home in Lethbridge and be realistic when faced with a large number of competing homes for sale. If a buyer is shopping for a pair of pants and they all look pretty much the same, it's simple logic that says they will buy the least inexpensive pair. The same could be said about houses right now... so make sure your house in the one "On Sale"!
Visit us for more information on Lethbridge Real Estate.
Current market conditons should always be considered when trying to decide if it's the right time to buy or sell real esate. Here's how the month of May looked in Lethbridge:
Total # of Listings (Month) - 696 (Up 33% from 2007)
Total # of Listings (YTD) - 2784 (Up 38% from 2007)
Total # of Expired Listings (Month) - 101 (Up 274% from 2007)
Total # of Expired Lisings (YTD) - 473 (Up 224% from 2007)
Total # of Sales (Month) - 273 (Down 32% from 2007)
Total # of Sales (YTD) - 1156 (Down 22% from 2007)
So, what can we interpret from this data?
Well, the number of expired listings continues to climb as sellers and REALTORS® alike are perhaps failing to realize how important it is to set a realistic list price when faced with stiff competition and a limited number of qualified buyers. Gone are the days of pulling a price out of a hat and hoping for the best. And based on the fact that total sales for the month are down substantially (last month, they were only down 14% from the previous year as opposed to 32% this month) we can assume that buyers are taking their time. They are realizing a shift in their favour and adjusting accordingly.
So what can a home seller do to be positioned correctly when it comes time to sell? Well, it simply doesn't matter how well you home shows and how fantastic your location is if your price is still not in line with current market conditions. There are a limited number of qualified buyers at this time, so when one of them walks through your home with the intent to purchase, make sure that your home appears to have the highest perceived value.
The moral of my story is, "When selling your home in a buyers market , you may only get one chance to make a first impression!" Make your home one of the most appealing amongst it's competition and find a qualified REALTOR® who knows how to help you do this!
Visit us for more information on Lethbridge Real Estate !
 |
|
|
Lethbridge Real Estate - Giving you a clear view on buying and selling real estate in Lethbridge, Alberta.
The Real Estate market in Lethbridge is changing daily. If you are looking at buying or selling real estate in Lethbridge, you want someone on your side who understands this changing market and how you can benefit from it. I am that person. Here is why I am different and what I will do for you:
I keep on top of market statistics. I make it my job every day to study and understand the Lethbridge Real Estate Market. From first time home buyers to seasoned investment buyers, I have the knowledge and passion to make your experience both enjoyable and successful. Here is what I offer to my buyers and sellers:
When purchasing a home, you will want a REALTOR® who you can communicate well with, who presents you all available options, is a good negotiator and who will be there for you through the entire process... even after the keys have been handed over! Most importantly, you'll want someone who always keeps your interests at the forefront. We have a great team of professionals who assist us in making your home purchase a smooth process.
When selling a house, the needs are a bit different, but you still need someone who is honest and professional and who has your best interests at heart. In addition to that, you will want to select someone with good negotiating skills and proven marketing techniques. The bottom line is that you'll want someone who will sell your house for the highest price in the least amount of time with as little inconvenience to you! You have come to the right place!
I am a member of the Canadian Real Estate Association, the Alberta Real Estate Association and the Lethbridge and District Association of REALTORS®. I am proud to call myself a REALTOR® and adhere closely to the Code of Ethics and Standards of Practice that govern my industry. As a Coldwell Banker REALTOR®, I also believe in and enjoy exceeding my clients expectations! I enjoy being a member of the Lethbridge and District Association of REALTORS® Technology Committee as technology and the use of the internet now play an integral part in the home buying and selling process. I can honestly say that I am aware of and use the latest technology to make myself easily accessible to my clients and to give them every advantage possible!
I believe that every person and their situation is unique and I tailor my services to you. From first time buyer to experienced seller, I want to get to know you so I can truly understand how to make your buying or selling experience a positive one!
You can find out more about me and what I have to offer you at Lethbridge Real Estate.
I look forward to hearing from you!
Liz Toles, REALTOR®
Specializing in residential real estate in Lethbridge and surrounding areas including Coaldale, Coalhurst, Raymond, Magrath, Stirling, Warner and Taber.
Member of the Lethbridge and District Association of REALTORS® (LDAR)
Member of the Alberta Real Estate Association
Member of the Canadian Real Estate Association
Member of the LDAR Technology Committee
Member of the LDAR Community Relations Committee
I also produce and assist with the writing and editing of the LDAR quarterly newsletter, "Real Estate Insight"
Millie and Liz are a great team, with lots of market knowledge and expertise. Their friendly personalities coupled with their attention to detail made the home selling process an extremely satisfactory experience.
~Sheila & Alan M.~
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
