As expected, April was an extremely busy month for sales as 8,107 single family homes sold, just 7% below 2008’s April sales of 8,762. The most active price range was $300,000 - $400,000 with 29% of the sales as many first time buyers took advantage of the record low mortgage rates, which are hovering around 3% for a 5 year variable mortgage. These ultra low rates represent a saving to the average buyer of $9,000 per year (3% on a $300,000 mortgage) and that means $45,000 on a 5 year mortgage. No wonder buyers are coming out in droves to take advantage of the savings!
| Housing Market Indicators | |||
| Apr. 2008 | Apr. 2009 | % Change | |
| Sales | 8,762 | 8,107 | (-7%) |
| New Listings | 18,691 | 12,995 | (-30%) |
| Active Listings* | 24,530 | 23,515 | (-4%) |
| Days on Market | 27 | 37 | (+37%) |
| *All figures for single family dwellings | |||
Its not just lower priced homes that are selling. 216 homes sold over $1,000,000 with 66 of them over $1,500,000. With the stock market in turmoil, and the banks offering a minimal return on deposits, people are obviously investing in their lifestyle and enjoying their homes.
Multiple offers on well priced homes were common in April, and the average sale price increased over $20,000 from March. HOWEVER, that does not mean prices of homes increased! That only means more expensive homes sold that month and so the average price was higher. Prices are fairly stable with well-priced homes selling quickly and overpriced homes getting lookers who end up buying other properties.
May is traditionally the busiest month of the year for home sales, with almost 11% of all of the sales, and this May will be no exception. Low interest rates, stock market recoveries and optimistic news reports all combine to make it a great time to buy real estate. Are we back to the good times and full speed ahead? Not exactly, but we kind of went overboard with the bad news and things were not as bad as it was predicted.
If you are thinking of upgrading your home, or know of someone considering real estate, please give me a call, I would love to help. Today, mortgage rates are far more important than price, and with my contacts, I will get you the best rates available. If your mortgage is up for renewal, DO NOT RENEW without talking to me. I am confident I can get you a better rate and save you thousands of dollars!
Fergus