What Happened in July??
This is the question I’m most asked these days – what happened to the real estate market in July??? Indeed there was a significant market slowdown, but it was not completely unexpected. We had a light winter followed by a busy, steady spring. And with all the low mortgage rate offers and the first-time mortgage buyer rule changes, anyone who was on the fence acted. Add to that a spectacular Ontario summer and we find people are far more interested in focusing on their vacations and travel. In fact, the 2012 Oakville market was up 32% in April (vs. 2011) and 7% in May (vs. 2011) and then began dropping off in June (when it dropped by 10% vs. 2011). So these numbers underscore the point – hot hot hot spring and slow summer. The good news is that vs. 2011, average housing prices are up 12 – 15%!! Bottom line: properties are still selling, but they MUST be picture perfect and perfectly priced. As we are not forecasting any significant changes in the short-term future of the industry, I am confident that the autumn market will pick up. (In fact, I have several listings pending already for that time period.) But instead of huge peaks, the market will be steady and balanced. It is important that if you are thinking of listing, you must prep your home NOW!! Do all the pre-staging work and any upgrades required. (Click Here to See our Pre-staging Video.) Be ready to list at the beginning of the autumn season when there will be less inventory on the market. And given the mini-rollercoaster swings we have seen in 2012 – where one week can make a difference of tens of thousands of dollars, being ready to jump into the market will mean more money in your pocket and a speedier sale. As well, if you have the ability to carry two homes, now is a good time to purchase even though selling your home may take longer. Talk to your Real Estate Agent and your Mortgage Broker to strategize. Overall, the Oakville market has slowed considerably – and homes north of the QEW have seen price dips of 2% vs. May and June. (Although the lower price ranged townhouses are still selling well.) In Milton, townhomes in the $350 – $400,000 range are also moving quickly. So I hope everyone is getting their beach and pool time in now because my Team will be rolling up our sleeves and diving into work come September!!