Wednesday, August 18, 2010
Many are thinking and writing about our current real estate market sales slump.
This is a typical summer slowdown, nothing to worry about, see this graph:
The papers and news can really drive markets one way or another, I think that things are very strong here in Ontario and Canada, hence the two bank rate increases of late.
Prices have been escalating so much in the past 18 months that a 3 bedroom townhome in Erin Mills cannot be found for under $300,000
That's only 1.5 years ago and back then there were between 30 to 40 3 bedroom townhomes in Erin Mills between $250 and $300k - I just checked again right now and there is not a single 3 bedroom townhouse in all of Erin Mills under $300k in fact the least expensive townhouse is $307,900.
Townhouses move quickly and sell well and are a very good indicator of the current status of the marketplace. This indicates to me that we have a very healthy market and there is no immediate signs of any weakening.
Prices will go up again in the fall, if they follow the same path as it has for the past 15 years in a row!
This means you should buy now regardless of price, but I too am a little worried that our market is a little overheated, but I've been saying that since 2000!
This is the problem when you are in real estate sales, I worry about the future because I am so close to the market and sometimes I can't see the forest for the trees!
I hope that you have enjoyed the fine weather we've been having this summer, still plenty to go!
All the best