Presentation Transcript

1. Real Estate Views

   2010 in Real Estate certainly ended up as a year of constant change.  Change insomuch as we have seen the market go from almost a full blown Seller’s market with prices & demand well above the previous year, to a balanced market in the late spring as inventory caught up to demand, and now we have moved towards a Buyer’s market as demand has dwindled and the inventory increased.  There was also some Confusion due to the change and uncertainty of how HST, new lending rules and interest rates are affecting the market.  The anticipation seems to be coming from the change and confusion – what will happen next?  Are we moving back towards a balanced market?  Will the US real estate market drag us down again? Will Northumberland County remain somewhat insulated from the fluctuations?  Will prices continue to go up or stabilize? It is never easy to look into the future, and virtually every prognosticator has a different opinion of what will happen next, but I believe that buying or selling real estate is a “what’s happening right now” experience.  In other words, timing is everything and the more current data and info you have, the greater chance you have of accomplishing your objectives when it is time for you to buy or sell.  In terms of the local market, here is what is the numbers in Northumberland County tell us on a year-to-date basis; 20102009 CHANGE SALES VOLUME $217.8mil $216.7mil flat NUMBER OF SALES               881931 -5% LISTINGS 2265 2142 +6% AVG SALE SPRICE : $247,000              $233,000+6% CONVERSION RATIO                          39%43% -4% ACTIVE LISTINGS 960 818                         +17% In order to see a clearer picture of how the year has progressed, here is a graph showing total sales by the month : Obviously the year started out much better in 2010, but then reversed in May.  As you will recall, we were in the middle of the “recession” at the beginning of 2009, but it ended in May and the pinned up demand came back in full force to a reduced inventory.   The boom continued through until about April of this year and then began to shift towards a more balanced market. Nathan Copeland - Sales Rep. 209 Hibernia St Cobourg ON Direct: 905-376-0092 Office: 289-252-1725 nathan-copeland@coldwellbanker.ca “Nathan always has our best interests foremost in everything that he does” – Eric & Heather T. RMR Real Estate Brokerage
2. Real Estate Views 2010 in Real Estate certainly ended up as a year of constant change.  Change insomuch as we have seen the market go from almost a full blown Seller’s market with prices & demand well above the previous year, to a balanced market in the late spring as inventory caught up to demand, and now we have moved towards a Buyer’s market as demand has dwindled and the inventory increased.  There was also some Confusion due to the change and uncertainty of how HST, new lending rules and interest rates are affecting the market.  Even so, the year turned out to be a very good one for the Northumberland Market – here are the year–end final statistics: There are a few things that jump out at me.  The inventory of houses for sale stabilized towards the end of the year, bringing the available listings in line with the seasonal demand.   The average sale price jumping up $12,000 over last year.  The sky didn’t fall!  For all of the gloom and doom being represented in the media and all the confusion over how the HST and new lending rules would affect the real estate market, it still was a very good year. Moving forward, and barring no significant international incidents, I see 2011 continuing the trend and offering what I believe will be a more stable and consistent market.   My biggest concern will be if the Bank of Canada significantly raises interest rates – the continued low rates have really fueled our quick recovery and hopefully this will continue for the next few years. Call or email me to automatically receive monthly updates by email Nathan Copeland - Sales Rep. 209 Hibernia St Cobourg ON Direct: 905-376-0092 Office: 289-252-1725 nathan-copeland@coldwellbanker.ca “Nathan always has our best interests foremost in everything that he does” – Eric & Heather T. RMR Real Estate Brokerage