With all the economic news available online now, it can get confusing out there. What does it all mean? One day things are looking up and another the Canadian dollar is down and the outlook is uncertain.
Firstly there is some truth to the adage “you can’t believe everything you read”. Working in Oakville Real Estate now for almost 12 years I’ve learned that is most definitely the case and here’s why:
Most of the statistics floating around in major reports on today’s Real Estate market are National. Canada is a big country and Ontario is a huge province. National statistics are a blend and the more localized you get your information relative to where you live the better.
Don’t get me wrong, there is value in the overall picture, especially when you’re looking at the influence the economy has on the Real Estate market and vice versa. Many businesses, industries and economic sectors are national and international. If they are affected, it can certainly effect the local markets.
The short of the article is that the overall moderate decline nationally is a short term trend that they fully expect to see change in the last half of 2009.
“The slight decline in July’s housing starts is mostly attributable to the volatile multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Although July registered a decline, housing starts are expected to improve throughout 2009.”
Looking locally though, Ontario was amongst the biggest losers with housing starts falling 15%.
In June the tone was totally different:
The tone was positive and the trend was expected to continue throughout 2009. Maybe July is a blip, maybe not. The reality in Oakville is that there is limited new construction of homes right now and many builders and condominium developments still have inventory on hand. Builders are being cautious right now, take heed.
If you believe everything you read, the Real Estate market is HOT, it’s sizzling and everyone is cheering all the way to the bank. Or are they? Why am I not jumping on the bandwagon? Oakville Real Estate is selling and average and median values are close or at par to the numbers this time last year.
I would and have been cautioning my clients to look before you leap onto the bandwagon. There are a number of factors that could be influencing the recent activity. After the “crash” and mortgage meltdown in the U.S. started last fall, there was a sudden drop off in market activity between October 2008 through February 2009. Real Estate sales and new listings were almost nonexistent. Many homeowners pulled their houses off the market all together. Once the spring market hit and consumer confidence was up from last winter’s freeze, the number of new listings to sales was and still is low.
Whenever you have fewer available properties this creates greater competition amongst the quality homes or condos that are available. This is why we have been seeing more bidding wars, properties selling higher than list price and the increase in values and selling prices. The stats out now are indicating that home values are up to where they were this time last year. This must mean everything is back to normal right?
What it means is that all the activity between $400,000 and $650,000 has caused greater competition and now there is next to no available 4 bedroom homes in Oakville at the lower end of that scale. The median selling price for detached homes in Oakville for July 2009 was $549,000 up from June’s median price of $530,000.
While strong home sales are a positive economic indicator, factors like job losses and corporate and wage freezes affect buying power. The uncertain future means it’s more important than ever to work with a Realtor that is working in your best interests. I work to build relationships, not take advantage of the market. Your Realtor should do their homework and help you to buy what you can afford now and down the road.
Tell me your thoughts on Oakville Real Estate and the current economic state - are we past the worst? Or is this a micro bubble?Ryan Chelak, Broker Town-City Realty Limited, Brokerage Phone: 905.507.0040 ext.22 Website: Oakville Real Estate Homes & Condos Blog: Oakville & Mississauga Homes & Condos Twitter: @OakvilleRealtor
There’s no question that the Oakville and Mississauga Real Estate market has been active this spring. May was a great month for Sellers and Buyers! But inventories are down… I need your listings! Buyers are still buying and taking advantage of mortgage rates before they increase any more.
Not a day goes by lately without someone asking me how the Real Estate market is these days. It’s a good thing – I love it. Just look back to late last year and early this year and everyone was walking on egg shells waiting for the sky to fall… and it didn’t.
First-time buyers and buyers alike are taking advantage of affordable mortgage rates – it doesn’t appear that things are going to change in the immediate future. Don’t think for a second though that it’s a Seller’s market – Buyers are buying, but they’re cautious and calculated. What is playing in the favour of Sellers right now is the low inventory of resale homes and condos in Oakville and Mississauga. I don’t believe this is going to result in a significant increase in prices, but what it does mean is that those homes that are most desirable sell first and for more money. What does this mean? If you’re looking to buy a property, buy what you can afford. If you’re looking to sell your home, make sure your home is priced right. Working with a Real Estate Broker that knows the Real Estate market is a very worthwhile investment. Sure I’m biased, but I also spend hours analyzing statistics and watching trends. I may not always tell you what you want to hear, but I’m working to protect your most valuable asset – your home. If you’re thinking of buying or selling Real Estate in Oakville, Mississauga or the GTA and would like more information please visit my website or contact me at 905.507.0040 ext.22.
June 2, 2009 — In May 2009, Greater Toronto REALTORS® reported 9,589 sales, up almost two per cent from May 2008 – the first annual increase in Real Estate sales since December 2007. The seasonally adjusted annual rate of sales in May was 81,300.
“The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill. “Many home buyers have taken advantage of extremely low mortgage rates.”
The average price for Real Estate transactions in May was $395,609 – down less than one per cent compared to the same month last year.
“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales have increased strongly relative to new listings, bolstering home prices.”
Source: Toronto Real Estate Board
Hi everyone and welcome to our little corner of the world. The Oakville Business Network is a group of like-minded business professionals and entrepreneurs who are embracing technology and building lasting business relationships at the same time.
I’ve enjoyed our short journey so far and look forward to years of success through networking.
I’m using my first post on our blog to introduce myself and my business – Oakville Real Estate. My name is Ryan Chelak and I have been working full-time as a licensed Real Estate Broker since 1997. I am a long-time Oakville resident and active within the Oakville community.
I specialize in residential Real Estate and condominium properties. I work closely with a network of private and institutional lenders and manage a Real Estate Investment portfolio of more than $20 million dollars. What you see is what you get – I work closely with you whether you are a first-time-buyer or an experienced investor with personal service, regular communication and attention to detail. My goal is to exceed your expectations by creating a customized service plan to meet your needs.
I embrace technology and the internet to exceed the expectations of my clients and expand my business on a daily basis. I blog regularly on my Oakville and Mississauga Real Estate and Condos Blog and encourage you to read my articles and let me know what interests you through your emails and comments.
I have a strong business background in finance and construction and call on my experience in condominiums, mortgage funds, Real Estate investment, property management, construction and renovation to provide a unique level of service to my clients.
My goal is not to just sell your home, close the sale and move on. I enjoy building lasting relationships with my clients and helping through all the steps of home ownership.
I am the Broker/Manager of Town-City Realty Limited - a boutique Real Estate Brokerage that has been serving the Oakville, Mississauga and Greater Toronto Area since 1965. We are a private Real Estate company that is driven by its Brokers and we will continue to embrace new technologies and enhanced communications to create cutting edge marketing material to maximize your property’s exposure and our results.
Please visit my website www.BuyAndSellYourHome.com for Oakville Real Estate listings and information on news and events that affect the Real Estate market in Oakville, Mississuaga and the Greater Toronto Area. Please feel free to email me or contact me at 905.507.0040. I always enjoy getting questions and comments so let me know what you think…