Real Talk!

In a recent blog, I expressed the opinion that it’s a good time buy property in this area…

And the statistics certainly agree.

I’ve been chatting with appraisers and Realtors ® and various folks with economic knowledge much superior to my own… and if you are waiting for prices to come crashing down… you’d better make yourself comfortable. It could be a long wait.

In October, the total # of sales was up 27%; while the dollar value of sales was up 23% over last year. Although year-to-date figures, so far, reflect a 12% decline in the number of sales and a modest 7% increase in dollar value, there are two more months of 2007 to be considered.

In September, the total # of sales was down 16% and the dollar value was up 6%. In August, figures were –17% and +4%, respectively and in July, -18% and about 0%.

The number of properties with “conditional” sales is up; these sales are not recorded in the tally- & the trend, in recent years, has been brisk for sales in November and December.

This market is moving, albeit, there has been an adjustment.

My sources suggest a myriad of factors that may have been responsible for recent market conditions.

Some finger the glut of Realtors ® in the business. Yes, just like the late 80s, the Real Estate market gets “hot” and everyone and their uncle tries hopping on the bandwagon. The Ontario Real Estate Association reports an ever-increasing demand for educational courses that lead to registration as a sales representative.

Some say that it’s these new real estate sales folks who often do well at first, through the support of family and friends and when there are substantial numbers of new recruits their inexperience and zeal can result in an artificial and temporary rise in asking prices.

It’s true, that new real estate representatives, seeking listings, have a level of excitement that may lead to a pie-in-the-sky sense of the marketplace. They may take listings at exorbitantly high prices, simply for the sake of having a listing and until the sales representative matures in their level of skill and understanding, there can be some startling anomalies in the marketplace.

Others suggest that it is the Sellers who inflate the market because the public has a one-sided view of the market and subjectively, most feel that their property is a superior property. In a busy market, Sellers feel that they can push the envelope. I’ve even heard it referred to as “greed”.

Whatever the reason, those close to the industry, especially those in nearby and similar “rural, recreational, retirement” markets, report stable, positive increases in sales and predict this will continue. They are of the opinion that spiking, rapid increases in prices have (for the most part) been adjusted and our market is seeing a more moderate, steady balance.

There are still those quick to point to global social/political & economic forecasts and feel that the strength of our market is attributable to the fact that non-urban environments are the most sought after. They believe there is considerable value in the element of safety and security provided by less crowded, rural areas where Mother Nature is evident and seems abundant.

Certainly, the Haliburton, Bancroft, Barry’s Bay, Combermere and surrounding areas have much to offer and the signs of growth and development are all around us.