THE VIEW FROM OAK PARK
The Official Krisztina Blogsite
On May 5th, the TD Bank came out with several projections regarding the Canadian Real Estate Market. They said home sales would be significantly lower in the second half of 2010 and all of 2011, and that prices were dropping. They also said that this new outlook is in accord with previous expectations BUT that TD now believes that the slowdown from the current hot housing market will be even sharper than formerly anticipated. Mostly this is because the first half of 2010 was HOTTER than expected. They believe home prices in the Toronto area will drop in the 3% range. As stated in my May State of Real Estate in Oakville video, I also see the market trending downward. Specifically in Oakville real estate, the number of residential sales for April Year-To Date 2010 has increased 55% versus April Year-To-Date 2009. BUT, we usually see April outperforming March. In 2009 April outperformed March by 32%. In 2010, April did outperform March, but only by 6%. The ‘downward’ trend has already begun, homes are reducing their prices versus just a few months ago and buyers are getting pickier. However, as this trend continues, fewer houses will be listed on the market and buyers will have very little inventory to choose from. Couple this downward trend with a rise in interest rates, and the onset of the HST means we can expect a slow summer in the Oakville housing market.
The biggest indicators of this trend are usually the high end of the market and the lower end of the market. In Oakville we are seeing a slowdown of sales in the $1,000,000+ range. And the lower end homes such as the stacked Mattamy Townhome semi’s in the $300,000 range are no longer receiving multi-offers, and some have even seen price drops. Both these waves will ripple into the mid-range housing market.
So this is the time when your property has to be perfectly priced for the current market. You cannot compare home prices to 2 months ago. It is crucial that your home shows well to generate a sale. Needless to say, this is where an experienced Real Estate Agent is your best ally. That experience will give you a huge advantage in pricing your home and discerning what improvements and upgrades your home requires prior to listing. This is also the time that you cannot wait to list. That delay could cost you tens of thousands of dollars. There is also a change in mindset. Two months ago, homeowners felt they could buy first and then put their home on the market. Now, I say, SELL FIRST with a longer closing. This will give you an advantage in choosing the property you want to move into.
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