Home sales depict slow February in Oxford

Housing starts in London area also lower

By Mark Schadenberg

The housing construction market in London was slow in February when new construction numbers were released.

At the same time, house sales in the Woodstock-Ingersoll District Real Estate Board (WIDREB) marketing area were also lower for February 2014 versus other recent Februarys.

Is the weather to blame? Certainly.

I’m not a meteorologist, but I would guess temperatures in February averaged at least 5 degrees colder than 2013, if not likely even more.

Canadian Mortgage & Housing Corporation (CMHC) reported 64 housing starts in the London – St Thomas area this past February (last month), compared to 77 last year.

Also, seen in the list below is the 2009 recession and how it mirrored in very slow real estate sales in the Oxford area due to the car industry meltdown and overall time period defined as a recession.

A similar reduction is depicted in WIDREB numbers for recent Februarys.

                        Month Jan & Feb Total

2014:               68                    112

2013:               103                  178

2012:               83                    146

2011:               90                    164

2010:               88                    149

2009:               46                    94

2008:               82                    163

2007:               113                  199

2006:               80                    162

2005:               90                    168

The main reason you should list now if you plan on selling this spring, is the overall total of active listings is very low. The demand will be there, but it is waiting for the snow melt.

CMHC Fees

Also, first-time buyers or people purchasing with under 20 per cent down for a high-ratio mortgage will soon be seeking to solidify a buy as CMHC insurance premiums are increasing after May 1. See: Toronto Star link below for a terrific story/viewpoint explaining the CMHC math by Mark Weisleder, who is a lawyer and not a Realtor. (Also: www.markweisleder.com). 

Time for a minor rant from yours truly. We are requested by CMHC (federal government body) and the lending institutions to forget that we had almost grown accustomed to banks letting people buy with zero money down, or handing out large payments at closing (cash back, but slightly higher interest rate) to do business with them, and that suddenly now there is not supposed to be a surprise when we are told the banks would rather not lend out money to purchasers with less than 20 percent down (I'm confused ?). Bottom line -- of course -- is that you still must qualify for the dollars you want based on credit score and employment record. 

Another reason to sell now is that attractive historic interest rates simply mean that a consumer can afford more of a house.

Woodstock's economy continues to be thriving versus other markets where employment seems to be shrinking still.

LONDON FREE PRESS LINK:

http://www.lfpress.com/2014/03/10/london-st-thomas-area-housing-starts-down-in-february

TORONTO STAR LINK:
http://www.thestar.com/business/personal_finance/2014/03/07/what_cmhcs_15_per_cent_rate_increase_means_for_buyers.html

STATSCANADA LINK:
http://www.statcan.gc.ca/daily-quotidien/110113/dq110113b-eng.htm

Full-Time Realtor. Call me Today!

Mark Schadenberg, Sales Representative

Senior Real Estate Specialist (SRES designation)

Royal LePage Triland Realty

757 Dundas St, Woodstock

www.wesellwoodstock.com

(519) 537-1553, cell or text

Email: mschadenberg@rogers.com

Twitter: markroyallepage

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