DON'T PANIC! BC Homes sales soar in March

Good news today from the various real estate boards in our beautiful province. For the second month in a row it appears as if buyers are ignoring the current "Oh my god, the world is over!" message continually pumped out by the 24 hours news media and actually spending their hard earned cash on well-priced real estate. It's a smart move, and one they will reap the benefit of in years to come.

The Times-Colonist newspaper of Victoria released the following numbers concerning the real estate market in BC for February-March 2009. Home sales are up across the board;

Up 53% in Metro Vancouver

Up 50% in Greater Victoria (including the Gulf Islands)

Up 34% in Northern Vancouver Island

Up 76% in Kamloops

Confidence in the market is Up from the end of last year.

Sales Activity is Up

Listings are levelling off. (If this continues it will reduce the housing inventory which, over time, will begin to pull the market back from being a buyer's market to a more balanced one.)

Lower interest rates and lower than average prices are tempting buyers back into the market. Home sales spiked in B.C. last month, bringing renewed strength to real estate markets during the global economic downturn.

"The market seems to be trending toward more normal levels," Vancouver Island Real Estate Board president Ray Francis said yesterday. "I think as we are seeing more consumers returning to the marketplace, the word is out about how [historically] low interest rates and some lower prices have greatly helped affordability. 

For balance I reiterate that these figures are way below those from the same time last year, but our real estate market is not in free-fall. Times are hard I know, but those who GET A GREAT DEAL, BUY, and HOLD will be glad they did in couple of years.

I'm sometimes amazed by the depth of pessimism of some of my colleagues and clients. Speaking with them you would think that our entire civilisation is at risk, that this economic downfall is fundamentally different to those we have experienced in the past, that this is the BIG ONE from which we won't recover. Nonsense. They seem unable to see the OPPORTUNITY through the fog of fear. Of course human beings have an infinite capacity for messing things up, but we also are able to significantly change our behaviour and come up with strategies to fix them. This is what will happen here. 

Usually the truth lies in the middle between extremes. It is a natural balance, and I think this is what will happen with the economy. It will hurt, but we'll get over it and move forward. Those that took the gamble will benefit, those that didn't will be disappointed, as is proved over and over again by history.

I don't know about you, but I feel the wind of change right now. In fact, I have for the last few weeks. Housing sales are up. The Stock Market has had the best positive run since 1933 and my stocks are making positive gains again (for the first time in 3 months!). The amount of buyers and sales I have had in the month of March was significantly higher than the previous three months. Interestingly, I have been putting in very low offers recently for property that has been on the market for a while, but none of the sellers are biting. They are prepared to consider offers, but aren't giving away the farm for free.

Some of my clients are also afraid of buying in now and prices falling further later. This is why I say Buy and Hold to offset this risk. But real estate investment is a speculative gamble, and as such there are no guarantees. If there were, the returns would be meagre. It's a lot like Poker, where you gamble your stake on subtle analysis of your environment and score big when you are proved correct. And remember, with real estate you are investing in land, something that people will always need. It's not a different kind of toothbrush or a new fashion, it's land, and they aren't making any more of it.

 So don’t panic!  GET A GOOD DEAL, BUY and HOLD!