You may be asking “What is going on?” The short answer is the market is hot right now, but don’t wait to sell. Currently, supply cannot meet demand. As of the end of February there were only 114 single family homes listed on MLS in the Cowichan Valley. We need more listings! With record low inventory, prices continue to rise. Last month the average sale price of a single family home in the Cowichan Valley was $518,877 up from $411,894 in February 2017.
With 51 sales in February, it didn’t change much from January with 48 sales, however, the number of sales in February dropped by 23% from February 2017. Again, we need more listings. Buyers are out there and your home could be just the right one to make their own.
There is speculation as to a drop in home prices. B.C’s new budget with higher taxes for home buyers is intended to lower home prices.
New mortgage rules subject borrowers to a stress test which forces them to be approved at a higher interest rate designed to decrease the amount of risk to the lender. This will limit the amount some buyers can borrow, which in effect could reduce the number of potential buyers for your home and therefore, result in lower prices. Also, mortgage rates went up last month and there is belief that they will continue to rise.
The spring market, which is just around the corner, tends to bring on more listings. Now is the time to sell before more inventory, new mortgage rules and increased taxes negatively affect the value of your home. Call me for a market evaluation of your home.
As a professional realtor I constantly monitor market trends. Please call me if you would like any further information on the market. I am happy to share my findings with you.