Early Spring Market Could Be Short Lived

02/04/2004

The market has definitely heated up since last we talked. I know our own brokerage has nearly tripled its production from that of January. I think it’s safe to say that the spring market has definitely arrived and is poised to set some record volumes for the season.

Among some of the contributing factors for our early start to the spring market are lower interest rates. I understand that interest rates in the very low 4’s are not uncommon for a five-year mortgage. If you are thinking of buying, now is the time to lock in for the long term, because these rates can’t last forever.

Another contribution to the quick start is what I call the rebound effect. Since December and January were much slower than normal and February was just ok, a pent-up demand in the Buyer pool has developed and the floodgates have opened wide causing a deluge of activity in the market. This however is a double-edged sword. Sometimes, when the market activity is quick to show itself in the spring, it will tend to be short-lived. In recent years the brisk nature of the spring market has sustained itself well into the end of July. It wasn’t always that way however, Julys of the past have always been the dog month of the year, equating very closely to the three or four weeks between the dawning of the Christmas Season and the end of the “Holiday Hangover” in early January.

What I’m saying is, Canada Day could mark the end of this spring’s market. I’m not saying it will, I’m just saying there is definite potential. Regardless of that, if you are thinking seriously about making a move this year, the safe money is on getting it listed sooner rather than later. Not only will you safeguard yourself against a potentially short spring but also you will be entering the market with very little competition. We are on the verge of a listing shortage due to recent increased sales volume and a lack of new inventory to sell.

Bottom Line: This is definitely an, “Early Bird Catches The Worm” listing scenario. Thanks for listening.

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