Spring is just around the corner

Spring is just around the corner but this year in spite of the weather, we have been seeing an early beginning to the "spring market". In fact the last couple of years have had an early start which most Realtors attributed to the mild February weather but this year it has been a sellers' market in spite of the worst winter weather in many years. Who Knew??
Just when you think you have it all figured out.....

It's spring 2012 and we're up to our ears in multiple offers again. The Cambridge market is very strong and our neighbours in Guelph are selling anything decent same day!!
It's anybody's guess where it will end as CMHC didn't forecast this at the fall conference 2011.
Rates are still low with 5 year money at 2.89 and 10 year at 3.89. People are starting to consider 10 year mortgages even though about 70% of homeowners with 5 year mortgages sell before the 5th year and have to pay a penalty to do so.
Note that there is no interest rate differential penalty on a 10 year mortgage after the 5th year 

Early Spring Fling

Here we are in 2010 and it's busy much earlier than usual. Our market usually picks up in March when the weather improves but this year, February has been very active. Many first time buyers are concerned about the impending mortgage restrictions, and everyone is trying to avoid the HST cost increase on July 01. If you're thinking of selling, now's the time and if you are buying, it's probably a good thing to start early this year as inventory is low and prices have already started to rise.

Economic update

It's been a little while since my last post and unfortunately, there still isn't any significant improvement in the local market. Sure, there are some small signs of change but the reality is that there are still many more homes listing than selling.

Interest rates are close to the bottom (how much lower could they really go??). You can now borrow at 3.59% for a 5 year fixed mortgage!!

First time buyers continue to be the most active, but most buyers continue to take their time and are way more cautious than in recent years. Buyers are also very aware that they have the bargaining power and are using that to their advantage in a significant way.

Buyer activity levels are so low that it can be difficult to really determine whether it would be practical to wait (from a seller's point of view) for a market improvement, or to go for the price reduction and motivate your property, then feel uncertain as to whether it would have been better to wait the market out. Most sellers are very conflicted at this time and I believe the majority are simply waiting for the turnaround rather than dropping their price and regretting it later, even though the price on the next home they plan to purchase is similarly low....

Again, I think most of the people I know and consult with, acknowledge that while we still have a weak market, there are some positive signs in the economy and are hopeful for a turnaround later this year or early next year.

My last post discussed the weather and the expectation that things would improve. We have, in the last week written three offers which resulted in us having competing offers. This definitely indicates a strengthening of the market. Rates are now at an almost unbelievable 3.82% for a 5 year fixed mortgage. This is a rate that hasn't been seen for 50 years. Cheap money!!
There are still many signs of difficult economic times, however not all markets are suffering to the same degree. Imagine living in Windsor where it is now possible to buy a home for as little as $25,000.00. The only problem with that is that the economy in Windsor is very dependent on the auto sector and we all know what is wrong there!! Let's hope the government and the unions figure out how to keep the big 3 in business.

It's been a while but here we go:
The weather has improved considerably in the last week and Sunday was bright, sunny and warm (relatively speaking!!). I spent the time from 2PM to 4PM as usual in an open house and there was a definite improvement in the number of people who showed up and also the general outlook was quite positive. I know we always get the blame for continually trying to put a positive "spin" on everything, however homes continue to sell regardless of what the economists tell you. Yes - volumes are down but we are coming out of the winter blahs and the low interest rates combined with very attractive pricing seems to be having a significant effect on the market. Only time will tell, but I suspect the Cambridge market is doing somewhat better than the news media would lead you to believe. Watch this space and see what April brings.

We're in, up and running. We have finally moved in to our new building. Still a few teething problems but all in all it's a nice thing to have a brand new office and proper ventilation and lighting. All we need now is for the market to pick up a little and it seems it might just do that! Open houses are seeing increased attendance and we're getting more client calls indicating a desire to buy or sell. We'll see what happens when the warmer weather returns. In the meantime, it's the early bird (certainly the hardy ones) getting the worms....