November…a time to reflect

November, the month we look back from to analyze the year that has passed. The real estate market began collapsing in October of last year, with November struggling to produce a much reduced volume of sales that disappeared completely in December not to begin to reappear until May of this year. Then in June a complete reversal with the beginning of record sales volumes that have continued unabated month over month. The recovery in sales volume did not spark a spike in sales prices. The combination of high inventories, low interest rates and lower prices created a leap in affordability that generated the atmosphere for consumer confidence to return to the market. Buyers came back, volume recovered dramatically and prices have remained stable with only marginal increases. The market became balanced with a ready supply of new listings and an orderly market for buyers to work within.

This fall, that ready supply of new listings has slowed more than the buying demand, firming up sales prices and the beginning of multiple offers on premier properties. Demand is thought to be driven by: affordability, which is still high; avoidance of the new HST coming in July 2010 and low interest rates that could start rising when the Central Bank takes its moratorium off of raising the prime lending rate in June of 2010.

Consumer confidence is improving, unemployment figures are stabilizing, and the stock market doggedly continues to make gains. Canadians are feeling comfortable with their future. It is a good time to be considering your moves in real estate, although prices are not anticipated to climb dramatically, the balanced market makes buying and selling less stressful.

My thirty years of experience is here to support you or anyone you refer. Call me…Let’s Talk.