To buy or to wait ?
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new creb leader gives her predictions
Incoming real estate chief sees stability ahead, Board president says buyers have opportunity
http://www.calgaryherald.com/business/Incoming+real+estate+chief+sees+stability+ahead/1199501/story.html
Question: How would you describe the real estate market in 2008?
Answer: It was an interesting market in 2008. We went from a seller’s market to a buyer’s market and we saw sales drop, listings go up. But we maintained our average sale price and median sale price. They stayed fairly steady.
Here is reality:
avg price may 2008 $486,000
avg price jan 2009 $415,100
when asked about the future of real estate sales and its connection to the the economy
"Our listing count is probably going to go up in the spring. But I don’t think it’s going to go as high as it did last year. Sales will be probably a bit slow to start with, but they’ll pick up later on. And it depends on the weather, doesn’t it?"
and the best for last
"Sellers need to listen to their realtors, too, and sellers have to be very competitive in pricing."
good grief..with sales off 50% and prices down 20% + why in the world would you listen to a talking head who knows only how to say..
"you had better buy now or be priced out forever."
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Q: How do good Realtors feel about their bosses who are flat lairs?
most of the replies are about resale home.....what's everyone's thought for a new construction? Esp. in a high demand area.
Not trying to steal the post but just thought would be interesting to hear about that side as well.
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Pooja
I per say haven't witnessed any significant drop in new home prices. I am monitoring a particular stretch in Vaughan but haven't seen price drops. I think builders are very smart they are kind of readjusting prices by reducing the lots sizes and sometimes throwing more on upgrades.
me too jagmag....I am keeping an eye on a particular stretch in vaughn as well....same analysis....in a discussion with some, he made a point that may be more upgrades but will slowly come to poor quality.
esp in that area...I am not seeing any builder dropping price.
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Pooja
Location: God's own country
Posted on: 22-01-09 12:04:45
Quote:
Originally posted by Pooja
I am keeping an eye on a particular stretch in vaughn as well....same analysis
I am not seeing any builder dropping price.
Pooja and Jagmag,
Eventually prices have to come down. Even for new developements. The houses that the builder is selling might have been approved in 2002 and the Builder would have taken a loan from the bank to buy the land it in 2003 or 2004 and hence he will go bankrupt if he reduces his price per se. But then again when he sees no buyers he will eventually have to bring the prices down. Vaughan is over prices as I can see.
We have a builder who does housing in Keele and North of Major Mac. He is selling it like 400K for a small house (3 small bedrooms). Come on! Give me a break. Which immigrant can buy in that desolate area for that price. May it is the rich Italians that he is looking off load the houses to. I have seen the list of buyers from 2005. In 2005, it was a mixture of people incl. desi's. But now he is selling like 1 house a month and is burning himself out.
The advantage of a new house is that the house value does not depreciate with the selling / flipping and hence taht is the reason that the prices fall down more slowly for a new house rather than a old house. I will explain.
Imagine a house which is 20 years old in Mississauga and it has been sold for 7 times in the last 20 years. Each of the time the seller pays 5% commission to the RE agent and hence in the lost 20 years about 35% of the total value of the house has been paid on selling. So when the price of the house is listed at $400 K it is actually worth 35% less. This is not the case with the new homes where everything is new, labour is fresh and price paid recently.
Hope this helps
Peace by TK
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I am a Gents and not a Ladies.
http://www.greaterfool.ca/2009/01/21/dont-wait-too-long/#comments
‘Don’t wait too long…’
If you’re Bonnie Wegerich, it’s a “stable and balanced market.” In fact, she adds, “there is no free fall here.”
And so is born the nation’s latest spokesmodel for real estate, another blinkered career realtor voted into a position of market influence and media stature, as president of one of our largest real estate boards. Like her counterparts in Toronto and Vancouver, Bonnie has interpreted her job as meaning she must try to restore consumer confidence in housing by fibbing about it.
At a forecast conference on Wednesday the 19-year housing veteran declared the average house price in Calgary this year will drop by 2% from its 2008 average, to just over $450,000. At the same time, she adds cheerily, sales will rise by 10%. “My advice,” she told a breathless metropolis of pent-up buyers, “don’t wait too long.”
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19 yrs experience...... People in “professional” occupations are routinely drummed out of town on their coat tails for deceiving the public…..whereas realtor spin is preserved, elevated and sanctioned by the main stream media…..and they want to be considered “professionals”.
http://patrick.net/wp/?p=176
Any thought from experts?
Yesterday , Harjinder Jolly on Band Baaja was quoting a detached house in Brampton - 3 Bdrm , 1Bdrm finished separate entrance basement , attached garage near William Prkway for .... $250 K ...... And the RJ quipped that @ 3% the mortgage would come to around $700 pm .......
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Fido.
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