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.

We anticipate that sales volumes will remain lower than last year, that prices will tend to fluctuate nominally up and down on a monthly basis, and that there will be no price appreciation until the economy shows signs of recovery. The positive side is the healthy increase in the sales to listing ratio that occurred last month, moving from 55% in March to 73% in April. The essential selling ingredients in today’s market are realistic pricing, marketing and preparation. There are potential buyers making inquiries, but the barrage of economic news makes them much more cautious than before.

With our listing inventory beginning to stabilize and the increase in the sales to listing ratio we will begin to create a floor for pricing. A stabilized market will allow for the orderly exchange of real estate, benefiting both sellers and buyers. We may not have reached the bottom of this cycle yet but we are certainly seeing the signs of stability emerging. My thirty years of experience is here to support you or anyone you refer. Call me…Let’s Talk.