What's Going On In The Orillia Market

More than ever the essential selling ingredients in today's market are realistic pricing, marketing, and preparation. There are potential buyers making inquiries, but the onslaught of economic news makes them much more cautious than before. "We are caught in a cycle where consumer confidence has been eroded because of job losses, and consumer confidence is an essential ingredient for housing sales activity," says the President of The Canadian Real Estate Association, Calvin Lindberg of Vancouver.  "And housing activity helps creates jobs." Each month, The Canadian Real Estate Association compiles the statistics of existing homes and properties sold through the Multiple Listing Service®. This provides an overview of the existing housing market in Canada, and tracks market trends for prices and properties sold. According to this analysis, the average for Ontario in January 2008 was $302,191 and the latest average in January 2009 is $275,466.  We did see a decline in house prices in Orillia with many price corrections occurring during the summer months, June's list to sale ratio was 42%.  With this wide range price reduction occurring it seemed to put a floor on most of the listing prices. The market is still moving along as there are a great number of buyers out there.  In December 2008 the list to sale ratio was 82%. Most sales occurred between $150,000-$249,999 for 2008. According to NAR National Associaton of Realtors 41% of home purchasers are first time home buyers. With the forecasted economic stimulus to aid first time home buyers, plus low interest rates, this will significantly affect the market by providing more trade-up buyers, subsequently creating a domino effect. Orillia cannot compare itself to the more expensive housing markets which dictate the national averages. We have to keep optimistic, and confident in our own niche in the market which seems to be slowly leveling off. While we will still see some price corrections in our local market, it just emphasizes the importance of correct pricing, and marketing of individual properties. In January 2008 the average days on the market was 84. With increasingly cautious home buyers and mortgage lenders that means that active listings will take longer to sell in 2009 compared to previous years. New listings on the MLS® systems of real estate Boards in Canada have been trending steadily lower since peaking in the second quarter of 2008, and that trend is forecast to continue. It is that combination of rebounding sales activity and fewer new listings that will stabilize the MLS® resale housing market in 2010.

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Statistics provided by Canadian Real Estate Association, Orillia & District Real Estate Board

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Miranda Cooper

Miranda Cooper

Broker
CENTURY 21 B.J. Roth Realty Ltd., Brokerage*
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