Monday, July 20, 2009

Has the housing market stabilized?



Prices up 2% Inventory down 30%...

Reports coming in from in the field are that 'everything is selling' and some segments of the market are not being replenished with new inventory. As a result, demand for updated well situated homes has caused multiple offers.


Consider This:


June was a record month with nearly 11,000 sales recorded to the Toronto Real Estate Board.

Here is some perspective: In June 2008 - a great market by any stretch - there were nearly 26700 properties in inventory. June 2009 - 18700.



Then mix in low interest rates and we got ourselves a market imbalance.



In June 2008 the lowest rate available for a 5 year fixed mortgage was 4.75% and that was through the exclusive Sutton Member Program, which is only available for buyers and sellers directly associated with a Sutton Group Real Estate transaction.



Today Sutton Group Mortgage is offering 3.59% (still the lowest rate in Canada) but much higher than it was in April/May when it was at its all time record low of 3.24%. (see http://www.suttonmember.com/).

Proof is in the Pudding:



Look no further than Levi Creek and Olde Meadowvale Village. At the time of this posting there are only 27 Freehold and Condo properties available. In fact only two single family detached homes are available in Levi Creek! This is out of a potential 4500 + homes! In a healthy market we should see upwards of 100 homes available.

Prediction:

We are due for a correction. Inventory cannot stay this low for too long. A rule of thumb for Realtors is that 5% of homeowners are moving or planning a move. We are 1% now!

Marcello Marchese and David Smeriglio have there fingers on the pulse of North West Mississauga especially Levi Creek and Olde Meadowvale. Feel free to contact us for further info about the area.

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