Real Estate market on the mend

Photo: Contributed

As in my previous article “May I borrow your Crystal Ball?” I stated that the Canadian Real Estate Association also known as CREA predicted that prices shall fall another 1.3%. CREA has recently adjusted their forecast to reflect a slight rise in the national sales activity to reflect 450,800 units by the end of 2011.

Inventory for single family homes in the Kelowna and surrounding area recently dropped to 1,481 from the previous month's 1,590. As the season progresses, history has shown us that this number should continually decline throughout the winter months.

The average sale price for single family homes last month was $464,000. For condominiums it was $251,000.

We are seeing an all time low with our mortgages rates as well. Dominion Lending Center’s rate for a 5-year term is 3.39%. For a $200,000 property on a 25-year amortization period and on a 5-year term, your monthly payment will be $986.96.

With inventory being down and low mortgage rates perhaps now is the time to buy and sell. Talk with your local trained Realtor for the proper advice and see your mortgage broker to discuss your options.

Perhaps there is light at the end of the tunnel and we can all take advantage of the low inventory and low mortgage rates. Perhaps those feared whispers and loose inaccurate predictions of the market taking yet again another drastic turn for the worst have subsided.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.