For the second consecutive month, the price of resale homes has declined. And while this can be attributed to the weak economy right now, there's actually some positives to be aware of here, primarily for homebuyers.
In looking at the numbers, benchmark prices are down 0.7% from last month, and 1.2% down from the same period last year, giving us the figure $453,100. In the scope of long-term averages, this is a decline of about 16%.
The biggest declines were seen in the apartment condo sector, where there's an influx of new condos coming on the market and resale supply levels are still high.
Price drops combined with pullback on demand, are creating conditions that favour homebuyers.
“In this type of market, both sellers and buyers need to have those hard discussions with their real estate professionals about their objectives,” said CREB® president Corinne Lyall, noting increased competition from both the rental and new home markets. If sellers are serious about selling, they need to consider how they are positioning their home on the market. Buyers, meanwhile, have to consider whether that home satisfies their lifestyle needs.” [CREB]
The luxury sector continues to be a good investment opportunity, as properties are being listed for lower than average. The real estate market is cyclical, so if you can afford to get into the market now, you'll see a great return on your investment once the market comes back up in relation to the economy.
If you have specific questions about buying or selling your home, or just want a better understanding of the market conditions, please feel free to contact me.