REAL ESTATE ADVICE FOR 2009!

Happy New Year and welcome to MARKPAULS.COM! 

       People all around you love to talk about real estate... especially in light of the faltering economy.  Many people have many opinions but at the end of the day, you want the same thing everyone else does... clear concise knowledge to make an informed decision.  Knowledge is power and any Real Estate decision you face this year will require a VERY current assessment of the marketplace in question. 

       If you own a home in Norfolk County you will be pleased to know that the Average Residential Sale Price increased in 2008 by +2.45%.  The average bungalow attained a sale price of $208,379 in 2008 (up +6.99%).   The average two storey home received the largest increase in value and realized an average sale price of $194, 963 (up +12.96%).  Although this increase of +2.45% is lower than the +5.7% in 2007, Norfolk County has done very well and not experienced the same losses felt in other communities across Ontario with the average home price dropping -6.54% in 2008 and -9.8% across Canada.

       If you were selling your home in Norfolk County in 2008, you experienced a “Buyer’s Market” with consumer confidence improving slightly in the third quarter.  With more listings on the MLS®, people had more homes to choose from and the average well-priced home took longer to sell.  There were also less Buyers shopping.  In 2007, there were 597 Residential Units Sold and in 2008 sales decreased -3.52% to 576 units sold.  Although sales were down -3.52% overall, it should also be noted that Condominium Townhomes sales rose 42.11% in 2008 and bungalows were the number one selling style of home accounting for 55% of sales.  Overall Norfolk County properties are continuing to increase in value and 2009 is expected to be a more balanced market.

       In summary, Norfolk property values are rising and there were slightly less homes sold in 2008. Advice for 2009?  The answer depends more on your situation than market conditions. 

SELLERS:

If you are contemplating selling your home be prepared to price your home aggressively within your price range.  For example if you want to sell for $200,000 try to price your home as close as possible to the selling price.  Buyers are VERY cautious and taking longer to make decisions.                

BUYERS:

If you’re a Buyer, then this is the time to buy!  Norfolk County values are holding steady and mortgage rates are low!  Be realistic in your offers and recognize that the list price is riding closer to the sale price.  Do your research and it may appear that prices have dropped, but in actuality, Sellers are lowering their asking price to compete for Buyers.

    Overall, 2009 is expected to be a balanced market (equal number of buyers and sellers).  Interest rates will continue to be low and the economy is expected to bounce back during the last half of 2009.  Having current sales info on hand is going to be key when considering any Real Estate decision.

    If you have any questions or require detailed information to help you make an informed decision, please give me a call and I’d be happy to help!