As the first quarter of 2009 is near completion, where do go from here, and what has transpired so far. First, the volume of sales has declined over last year by aproximately 30% , not the price. London home prices on average are down just 3% , with the more expensive homes priced around $400,000 down about 10%.
Everyday the media is doing a wonderful job telling us about the bad news, and if you only listen to this, it can be terrifiyng, but there is plenty of good news that is not reported, such as the availablity of 5 year mortgage rates not ranging from 3.8 to 3.9% This is by far the lowest they have ever been as of this date.
The inventory of homes in London is plentiful, and prices are very affordable as they currently are.
The current financial mess that the world has now experienced has reinforced the fact that the only real way to increase personal wealth is through real estate ownership, it is something that we live in and we can control, and do not even try to compare what happened in the United States to Canada.
With the new Ontario budget now in place, I believe that home prices will not be any cheaper. The increased tax will raise the cost of new homes that are over $400,000, this will eventually increase all other homes as well in addition to the operating costs such as hydro and other services. Home ownership may never be this affordable again.