All we can really do is analyze the past markets, ascertain trends and historical data and look at what is currently happening to predict what 'may' happen in the future.
I've always said to my clients that I can only accurately predict about 2 to 4 weeks into the future. That's it, much longer than that time period is more of a best guess.
Volume of sales has continued to be typical and strong, no major drop or trend downward for number of sales - more typcial for this time of year.
Our market average prices have softened since about Labour Day this year and condos seem to be the hardest hit. Prices are still dropping in the market and especially the condo market, not dramatically, but they are dropping.
This is in contrast to the unprecedented growth we have experienced for more than 15 years. The only interruption to that rise in prices was in the fall of 2008
You can clearly see the seasonal trends of prices increasing in the spring and fall at this graph See the Average Price Cycles from January 1995 to Date
The average price fluctuations are shown at this average price graph over the past few months.
Near historic lows for mortgage interest rates have helped.
I don't believe we were in a bubble but our prices were certainly over inflated. The rental market is still very tight. This is good news and indicates that people are working and that there is still a strong need for rental housing. If the rental market softens then our resale market will get hit much harder than it is right now. There are no signs of this happening in the near future and let's hope that our market turns around in the early part of 2013. Only time will tell.
Conclusion: our real estate market will continue to be healthy, prices will continue to drop in the near term, at least until the middle of January. Check back in mid January to see what our market is doing at that time!
Thank you to all my current and past clients I wish you a Merry Christmas and All the Best to you and your family in 2013!Mark
For more information please contact A. Mark Argentino
A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com
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