Tuesday, May 11, 2010

Has Spring Sprung?

I'm looking out the window sitting next to my cozy fireplace and can't believe it's May 11th.
While the weather is not cooperating much with its seasonal forebears, the real estate market seems to be acting out in its usual way this time of year. For buyers, this is bringing some much needed relief. Up until a few weeks ago, buyers were left out in the cold (literally and figuratively) throughout this very hot sellers market of the last 6 months.
What is causing this you may ask. In my opinion, a number of things. Traditionally sellers like to list their home in the Spring. It shows the home in its colourful (and usually warmer) habitat and after a good 'Spring Clean' homes do show their best. Equal attribution must go to the impending HST which will come into affect July 1, 2010. While the increases in the costs to both buyers and sellers will not be huge, it is yet, another cost from the taxman and I know when buying a home every dollar counts. And there is that little thing we call 'interest rates'. Yes, they are going up - not by much mind you, but an increase is an increase.
So, fair to say that the recent spate in the multitude of listings and the presence of many buyers are these combined factors. I would also say with confidence that the market is healthy. There is no sign of a 'bubble about to burst' or any other such rumour. The situation in Greece is not helping with the fluctuations in currency, but the dollar is hovering where it always has - just below the greenback.
So, have no fear! This is a great time to sell and buy and perhaps for the first time in several years we can say that this is indeed how the market should be. Not an advantage for either side (buyer or seller) but a healthy market which is 'just right'...where the price of a home is not averaging $60K over the asking price or $40K under the asking but selling at or near the posted and realistic value. So here's hoping this trend continues into the summer and keeps the market on a steady and confident road.

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