Monthly Archives: October 2017

Testimonials

We really appreciated Lisa’s help finding the perfect condo for us in Nanaimo. Lisa was a pleasure to work with, responding promptly, cheerfully and efficiently to even the smallest request. She worked tirelessly to get us familiar with different neighbourhoods and to consider different options. Even after the sale was completed successfully – which she facilitated professionally and expeditiously – she was always available to help. Working with Lisa was a great experience.

Alison MacPhail

My wife and I bought a house through Love Real Estate Group and we are very happy with the entire process. They are thorough, honest, diligent and hard working. It was easy to discuss various options with them and we felt comfortable at all times working with them. We’ve since recommended them to friends and will continue to do so.

Martin and Apple McGeough

NEW MORTGAGE RULES COMING JANUARY 1ST, 2018

Published By: on October 24th, 2017 in Category Home Owners Hints, Nanaimo Real Estate

Written on October 24, 2017

WHAT YOU NEED TO KNOW:

If you are planning to do any of the following:
• Refinance your existing mortgage
• Switch your existing mortgage to a new lender
• Purchase an investment property
• Purchase with 20% or less down
• Purchase with 20% or more down (stress tests now apply to conventional mortgages too)

You may find it harder to qualify for the funding you require.

Although rates are still low, the “stress test” levels are rising. This means that you have to show that you can manage payments for a rate that is 2% higher than your actual rate.
For example if you are given a rate of 3.39% you will need to qualify at 5.39%.

There are good reasons for this stress test. The banks are trying to discourage buyers who are stretched to their limits at current rates and who may default on their mortgages if interests rates rise in the future. Lessons learned in 2008!

If you think that these new regulations are going to affect your borrowing power, and you are thinking of buying or refinancing in the new future – ACT NOW!
After Dec.31st your options will become more limited.

Please call the Love Real Estate Group for more information – 778.557.6583

October 2017 Nanaimo Real Estate Market Report

Published By: on October 11th, 2017 in Category Nanaimo Real Estate

Written on October 11, 2017

 

It’s now official – the tide is turning in the Nanaimo Real Estate Market.

The Vancouver Island Real Estate Board (VIREB) has published its statistics for September and there is a clear trend emerging. I have never been a person who is naturally drawn to statistics, but these ones have real life consequences for the families we work with, and that makes the monthly stats very interesting and relevant.

For the past 3 years we have seen our inventory go lower and lower, month after month there were fewer homes for sale. At the same time it seemed like the whole world had discovered Nanaimo. The demand for homes has steadily risen with sales increases every month. The result has been a very challenging market for Buyers- there was so little available and so much competition! Prices have been rising, sometimes by the week! The low inventory has had a snowball effect – on itself. People were afraid to sell their homes in case they had nowhere to move to – nothing to buy! The lower the inventory, the more frighten home owners were to venture out there. Gridlock!

Finally, in August 2017 we saw a reversal of this trend. For the first time in 3 years (maybe longer) there were more new listings than the previous year. Also, there were fewer sales than in 2016. Higher supply and lower demand (instead of lower supply and higher demand) have caused the market to begin to balance, and cause the rise in prices to begin to slow.

September stats have shown the same reversal – we now have an official trend.

Experts are not expecting a big drop in prices, just a slowing down of the increases.

A balanced market is one where the Buyer demand and the supply of homes for sale are approximately equal. A more balanced market will be a healthier market for everyone. Buyers can make better decisions when they are not rushed into making offers they are not ready for. When Buyers make more informed decisions, the deals go better for the Sellers too.

We expect the overall buyer demand for properties in Nanaimo to continue to be high. Nation-wide, baby-boomers are looking for fair-weather cities where they can buy for under $600,000. Nanaimo may be the only city of that description left! This factor alone will keep the Buyers coming to Nanaimo.

It’s time for us all to take a breath and enjoy a more civilized pace of business. That makes it a great time to list your home. Call us for more information:
Love Real Estate Group, Marie Burrows and Lisa Martin with
Love Real Estate Group 778-557-6583
RE/MAX of Nanaimo
1-5140 Metral Drive Nanaimo BC
250-751-1223
“Each office independently owned and operated”

THE WINDS OF CHANGE – THE MARKET IS SHIFTING!

Published By: on October 5th, 2017 in Category Nanaimo Real Estate

 

Written on Octber 5, 2017

In Nanaimo real estate we have been experiencing a strong Seller’s market for the past 3 years. Rising prices and multiple offers have been a constant challenge for Buyers and a bonus for Sellers. Along with the frantic pace, both Buyers and Sellers have been experiencing a lot of stress. The time pressure experienced by Buyers has caused some to make offers that they could not follow through with. At one point we were finding that, across the market, a full third of contracts were failing due to lack of financing, low appraisal rates and, for some, just cold feet. Hasty decisions are not good for anyone.

There is a change in the wind. The market statistics as well as our everyday experience in the marketplace show that, for the 1st time in years, there are more homes being listed than have sold. The biggest problem that we have faced in this Seller’s market has been lack of inventory. In August we saw that shift, with more listings on the market and fewer sales. The average sale price was still up and the number of days on market was down, but in time, higher inventory and lower demand will bring balance to the market.

We are not anticipating a drastic drop in prices, just a cooling of the pace and levelling off of prices. So far, this is being felt most in the higher priced properties. There is still a lot of competition for the $300-600,000 priced properties.
In fact, there is a lot of demand from across the country for properties under $600,000 homes in “fair weather cities”. That’s us! Nanaimo is one of the few fair weather Canadian cities with average sale prices under $600,000. This will keep up buyer demand for the future.

We seem to be heading into a more balanced market where the pressure is equalized between Buyers and Sellers. This will be a healthier market for all sides, resulting in deals that are based on solid financing and thoughtful decision-making.

If you are thinking of buying or selling your home, now is an excellent time. Please call us for a no-obligation consultation.

Love Real Estate Group, Marie Burrows & Lisa Martin – The Love Real Estate Group We@LoveRealEstate.ca
778-557-6583