McClelland Minute - August 30, 2009

This and That

It has been an interesting summer.  Normally residential sales slow down from mid-June until after the August long weekend.  Buyers have other things to do with their time this time of year – weddings, vacations, family reunions, etc.  This year activity actually increased in that time period; resulting in a number of press releases from Real Estate Boards across Canada stating that July was the busiest month in several years.

My phone rang last week and the caller wanted to know just how much housing inventory was available in the region compared to sales.  He saw more Sold signs in evidence, but how many months would it take to “clear off the shelves” at the pace the market was going.  Was it a healthy supply with the area in recovery towards a more balanced market or was it still a buyers’ market?  Was this a good time to sell?

Valuations for appraisal or pre-listing purposes often are stated in a 90 day horizon.  In other words, if the subject property was placed on the market today at the recommended price, the seller could reasonably expect to be able to accept an offer within three months.  According to my calculations, we have over a ten month supply of residential properties at the pace we are going.  But having said that, 70% of sales this summer have been for homes that were on the market for 90 days or less.  I qualify this by also saying that there is no way of knowing if the property was previously marketed privately, or for how long, before entering the MLS system.

One thing is for sure, if you can’t logically justify your asking price, it simply won’t sell. Buyers have too much to choose from with more coming on the market.

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I saw a neat set up at one of the lakes this week and thought I would share it with you.  It was an oversized double garage set up along one side of an oversized lake lot.  At one end inside there was a pressure system, hot water tank, laundry room, bathroom, and large shower accessible from both outside and to the balance of the interior of the shelter.  A large overhead door faced the outside fire-pit.  Stored inside the structure were picnic tables, refrigerator, ATV, lifejackets, and anything else that would create some fun no matter what the weather was like outside.

Configured around the compound were a number of underground sewer inlets plumbed into a central septic holding tank.  Along side each was a water faucet and electrical outlet.  This property could easily support a half dozen individual RV units.  All in all, a great gathering place for family and friends; easily maintained, and best of all, not creating a huge property tax bill for the owner.  If you want to see a picture, drop me a line, and I would be happy to send it along.

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There seems to be an open season lately on real estate signs.  Personally I have had to replace 16 so far this year.  People drive over them, use them as skate board ramps, target practice, firewood, even take them for advertising their garage sale.  Thank you to those who find these in their flower bed or front lawn, and call us to retrieve them.  My appreciation too to the neighbours of our vacant or remote properties who let us know promptly when a sign goes missing. 

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