Updated: Thu Mar. 19 2009 22:41:50

ctvbc.ca

For the first time in over a year, housing prices have gone up.

Analysts say the March increase could mean the market has already hit bottom, or it could simply be a spring price-thaw that is typical of this season.

The housing market peaked a year ago, but as summer 2008 rolled around, houses became less expensive for the first time in a decade.

Now, as the spring season gets under way, analysts are watching closely to see which way prices are headed.

That's because this season may determine the direction of the market for a long time to come, says Vancouver real estate analyst Cameron Muir.

"It's really going to be a litmus test for home prices," said Muir.

"The stock of homes for sale is beginning to diminish and we're seeing some increase in home buyer activity, so the spring market is going to be an important market for greater Vancouver," said Muir.

But for now, it's still a buyer's market.

"It's conceivable it could take twice as long to sell your home as it did last year," said Dodi Thorhaug, of Re/Max.

"The buyers that are out looking right now are being cautious buyers and they will buy if that house or that condo or townhouse has a wow-factor," said Thorhaug.

And with interest rates down, some people are finding it worthwhile to switch their mortgages

Now can be a good time to switch, according to mortgage specialist Peter Kinch.

"These are rare opportunities we see every once in a while in the market where it may make total sense to get out of your current mortgage," said Kinch.

If you you're paying five per cent or more in interest, Kinch is advising you to approach your bank.

"A lot of banks are afraid of losing business right now, so what they'll do is they'll negotiate to a certain extent the penalty -- they might give you a 10 per cent discount on that," said Kinch.

Vancouver resident Lyndsy Pahl decided to break from her five-year-fixed mortgage and sign on with another bank, even though it cost her $52,000 to get out of her old mortgage.

"Why not take the lowest rate you can?" she asks.

'I knew I would get dinged, and I specifically looked at that penalty before I sought out the new mortgage," Pahl added.

With a report by CTV British Columbia's Shannon Paterson

Please Add Comments(3)

Garwat
lol, ALL REALTORS ARE OPTIMISTIC...THEY HAVE TO BE. TAKE A LOOK AT THE ECONOMY, ITS STILL HEADED SOUTH. UNTIL THE US FIXES ITSELF..WE WILL FOLLOW IN A YEAR. LOOK FOR 2011 TO BE THE TURNING POINT, NOT NOW, STUPID OVER PAID ANALYSTS.

A Guenther
Why doesn't CTV report on Harper's encounter with Fox news and his mention of the D word in relation to Canada? Furthermore, why does Harper then return to Canada and say that he stands behind his optimistic outlook for the economy?
When the outlook is built on lies for the sole purpose of boosting a false confidence, then the economy as a whole will fall like a house of cards.
And after the next plunge in the stock market.. I'll give it no longer than 6 months.. who exactly will be taking responsibility for the next pensioner trying to take their own life because they were lulled into a sense of security yet they were betrayed and they've lost everything?

Doug from Surrey
As a business owner I can tell you that anyone who is good at what they do is optimistic and those who know they are lacking are pessimistic....realtors included.

Price will depend on the area and demand. In many areas of the US there is significant home sale activity just like in Vancouver.

Is it just that time of the year or are people realizing that low prices can't last forever? We've been hammered over the head about how much BC's economy is suffering, yet when I go to Starbucks I have to stand in line for 10mins...at most locations. I went furniture shopping 2 weeks ago, and there were lots of people shopping and BUYING. There was one furniture shop that was empty, but looking at the quality of the merchandise and the salespeople, I would say they were struggling even during the best of times.

I'm optimistic...my mortgage is paid out, I have other properties, I have a company, and I don't need to whine because I know the economic cycles [I've been thru 3 of them] and I know that handling any kind of crisis requires calmness, levelheaded descision making, and of course patience & optimism.

Thats my opinion..like it or not.