Market News Remains Bleak For 2009

As the economic crisis continues, news from the real estate industry continues to be quite bleak for builders and sellers who aren’t poised to navigate in this squeezed market. According to a recent report in the Toronto Star, Canadian home prices are anticipated to fall another 8 per cent this year. Buyers, however, will find their options are great if they can attain the financing they need to close deals.

On the upside, many analysts are hopeful that a turnaround will be seen in early 2010. This will, of course, depend on a number of factors. One of the biggest is consumer confidence, which many are presently blaming for the continued drop in pricing and sluggish sales reports. As foreclosures continue to soar and jobs are lost, many people are just plain afraid to buy or build. This is evidenced in the anticipated sales for the year. The Canadian Real Estate Association is bracing for a decline in sales of 16.9 per cent this year.

So, what does all of this mean for buyers and sellers?

Buyers, who can get financing, will discover the market is wide open for them and prices are still falling. Average housing prices in Ontario are expected to fall to about $279,100 this year, which tracks well with the expected national average pricing. In Toronto, the Real Estate Board is reporting a $30,000 drop in the average sales prices of houses, down from $343,632 in 2008. Whilst this isn’t the best news for sellers, it is encouraging for buyers who are poised to get into the market.

Selling in this market is a challenge, but it’s not impossible. Sellers who position their properties for the market, set their prices right and work closely with professionals can see closings in their future, especially if predictions are correct that the market will loosen up a bit in 2010. Back To blog