Where is the market right now?

Looking at the statistics we see that there was an increase of almost 23% in annual sales ending in February 2013 over the same time frame last year. During this time, inventory has only dropped 8%. Prices continue to fall... 4% since last year. Overall, prices are down a modest 11.5% from the highest prices ever recorded in 2008. This small loss in home prices in our market is good news as many other markets in Canada and the US experienced much greater losses in property values. I attribute this to the desirability and attractiveness of our region as 41% of our Buyers came here last year from other markets.

We are in the 5th year of a falling market so this can be taken to mean that we are near the end of a down cycle, at a market bottom and progressing towards a gradual recovery.

The market over the next 12 to 18 months will be characterized by a gradual increase in sales, followed by lower inventory. Prices will continue to fall very slightly, then firm up (bottom out) and then slowly start to rise. This outcome and the timing of it will depend greatly on how the world and national economies fare out over the coming months.

Please call or email me any time if you have any questions. A brief description to help you interpret the statistics that we publish is also included.

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