In December 2008 in Oakville we sold 8 homes for every 100 homes for sale (8%). During the last 30 days we sold 40 homes in Oakville for every 100 for sale (40%). This is now a very healthy market.
Homes in the lower price ranges are selling well. Higher priced homes/condos continue to sit ignored and forgotten as buyers are still licking their wounds from the stock market and banking meltdown. If you are a trend follower you may say buy a home where there is lots of action. In this case you would buy into the lower market segment that is active and has increased from its lows.
Eventually the pendulum swings and the higher priced properties will again be courted. They can only be ignored for so long. I am sitting in a high end condo doing an open house today where there are 13 listings and nothing has sold in 3 months. This will not last. The contrarian would buy the higher priced property now, when demand is low, sellers are frustrated, and prices are soft. The opportunities are many, the risks are relatively low and my contention is now is the time to buy. Now is the time to buy that property that you could not afford 7 months ago. You may not be able to afford it 7 months from now.
Cheers..Doug Izon P. Eng. Real Estate Broker, Century21 Dreams 905-599-1265 www.EyesOnOakville.com; Mortgage Broker, Centum Total Mortgage Services Inc. Lic # 10646