CADREB Tuesday July 6, 2010
Buyers Reap Rewards of Adjusted Home Prices
June Jitters expected to fade and sales jump after summer
espite having little effect on the bottom line of a home sale in Chilliwack and area, it appears HST jitters contributed to a dip in home sales in June.
Sales typically slow down in the summer months, but adding to the Kyle Hislop, Pres. CADREB
downward trend is uncertainty about the effects of the newly
implemented Harmonized Sales Tax, said Kyle Hislop, President
of the Chilliwack and District Real Estate Board (CADREB).
"The truth is, as the majority of homes for sale in Chilliwack and area are under the HST threshold, it only minimally affects the price, if at all".
Sales in June totaled 224, compared to 250 in June of 2009. Inventory remains strong, with 466 new listings entering the market last month for a total of 1684 current listings.
As price is driven by supply and demand, sluggish sales equate to adjusted prices.
"The average price of a single family home locally dropped from $352,000 to $344,000," said Hislop. "Combined with continued low interest rates, it is an excellent time to shop for a first home, a move-up or an investment property".
Hislop cautions sellers that they have to be prepared to heed the advice of experienced realtors, who are accustomed to the ups and downs of the housing market and can offer strategies for making your home as attractive as possible to potential buyers.
"That means being realistic about pricing it in line with current market conditions," added the CADREB President. "Often sellers have a pre-conceived price in their heads, but they need to listen carefully to their realtor to study the market trends and comparable listings."
Of the 224 sales last month, the highest number of sales (36) were in the $300,000 - $349,999 range, followed by 27 sales in the $250,000 - $274,999 range. There were 24 sales over the $500,000 mark.
The CADREB anticipates the market to pick up again in the fall, as purchasers get more comfortable in understanding the effects of HST generally.
See the Cadreb June stats below.
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