Saturday, August 9, 2008

So what is happening in the world of real estate in our back yards? In Port Elgin, employment is steady, tourists are here, and money is being spent. So why does it appear that the market is slow? "APPEAR" is the key word here. The difference between a buyers market and sellers market is very evident between the two.

In a buyers market:
- inventory of listed homes is very high
-lower buyers to listings ratio
- buyers have choice which makes purchasing a slower process
- prices correct to the market (price reductions for the most part)
- buyers have a better negotiation strategy because of these factors

In a Sellers Market:
- employment and economy strong
- inventory of homes for sale are low
- higher buyers to listings ratio
- that must have attitude from buyers
- homes sell at or slightly above listed price (multiple offers on one house)

Right now, we are considered to be in a buyers market.
In Port Elgin, we have seen a huge increase in listed homes over this time last year. There are many reasons, such as relocation, vendors wanting to "cash in" on the market, down/up sizing. This has caused the "APPEARANCE of a slowdown in the market when in actual fact, properties for the most part are selling. Not as quickly mind you, but many are selling. We have seen some correction in the market as far as pricing. Last year, many homes lasted no longer than 30 days on the market, this year, it isn't unreasonable to see a home listed greater than 60-90 days which in the past(pre-2007) was normal. 2007 saw a record breaking year around the country. Now the market is correcting itself from that "must have" attitude.
Part of the reason for the "scare" in the market, is people think that if it is happening somewhere else, it is going to happen here. Take the U.S. market for example. That was the big hype for some time. This impacted us, becuase of the fear of it happening here. People also get nervous when they see the layoffs in other markets such as Oshawa. This is very much understandable.
In this type of market, when purchasing a home to "live" in, you can't think of the word "flip". If it is the home you want, and you can afford it, make some negotiations, then make the purchase. Don't hinder on what the value will be in 5 one has a crystal ball nor a theory on what the future will hold for that particular home as there are far to many factors to consider. Most of which are beyond your control.

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