Is this a “Dead Cat Bounce” or
Our Normal Spring Market Warming Up?

This year January was dismal as we recorded dramatically few sales. February followed with a glimmer of hope as the market moved forward in volume but not anywhere near previous years’ volumes. Then came March with 602 sales indicating consumer confidence was returning to the market. April has followed that trend with sales volume rising to 747 properties. The fuel for this increase is the first time home buyer moving into the market. Last month a full one third of all sales were under $450,000. First time buyers seem to be more acclimatized to economic factors, are more optimistic about the market with record low interest rates, new government incentives aimed at encouraging first-time buyers and the lowering of prices. Those with good down payments, secure employment and good credit ratings are moving into the market undeterred by tighter lending criteria. The entry level is becoming more affordable. Hopefully this will give a boost to the mid market, which at present is still lagging in sales volume while the upper end is decidedly quiet. While the current economic crisis has caused some first-time buyers to either take it slow or apply the brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying costs.

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