The last few months have seen very few (if any) positive real estate reports in the media.It has been said that “sex sells, baby”, well unfortunately so does doom and gloom. It must. It’s in the news everyday!
I don’t want to make light of the current economy, a lot of families are hurting these days, but at the same time before we concede to the sky falling in, let’s look at the local real estate market and specifically the White Oaks market.
Here are some excerpts of a January 7
th London Free Press article:
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Home sales, prices fall
2008 was a good year overall, however, realtors' association president says
By HANK DANISZEWSKI
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Homes sales and prices continued to slide in December, as the fourth quarter soured an otherwise decent year for real estate in the London area.
The average price of homes sold in December also tumbled below $200,000, selling for $191,635 compared to $206,557 in the same month last year.
Bruce Sworik, wrapping up his term as LSTAR president, said 2008 was a good year overall, with 8,356 homes sold, down 11 per cent from 2007.
But the economic downturn started to bite in the last quarter as the number of sales and average prices started to slump.
Sworik said a big factor in the London-St. Thomas market this year has been a surge in the numbers of listings. In December there were 3,133 listings compared to 2,241 listings a year earlier.
"More selection of home styles and location has been an issue for the last six or seven years. Now the buyers have a lot more choice," Sworik said.
To summarize;
- 2008 was a good year overall, unfortunately it followed a record year in 2007.
- 8,356 homes sold through the MLS system.
- In December there were 3,133 listings compared to 2,241 listings a year earlier. That a 50% increase!
- " selection of home styles and location has been an issue for the last six or seven years. Now the buyers have a lot more choice.” Sellers take note; there is a lot more competition now than the previous year.
So how did White Oaks do in 2008? ..................
Below is a summary of White Oaks house sales (excluding condos). I have divided the sales into two groups; houses under 25 years old and those 25 and older.
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Summary of White Oaks House Sales
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Under 25 Yrs Old
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25 Yrs and Older
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Sales
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Avg. Sale Price
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Sales
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Avg. Sale Price
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2007
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59
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$208,592
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124
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$169,207
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2008
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54
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$202,549
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100
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$172,384
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Change
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-5
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-$6,043
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-24
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$3,177
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Change%
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-8.5%
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-2.9%
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-19.4%
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1.9%
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As you can see the volume of sales are down from 2007 and prices changed very little.
Next, let’s look at a break down by house style.
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Summary of White Oaks Bungalows and Ranches
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Under 25 Yrs Old
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25 Yrs and Older
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Sales
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Avg. Sale Price
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Sales
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Avg. Sale Price
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2007
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10
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$196,700
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45
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$173,040
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2008
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9
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$198,694
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34
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$178,258
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Change
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-1
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$1,994
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-11
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$5,218
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Change%
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-10.0%
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1.0%
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-24.4%
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3.0%
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|
|
|
|
|
|
|
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Summary of White Oaks Two Storey Homes
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Under 25 Yrs Old
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25 Yrs and Older
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|
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Sales
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Avg. Sale Price
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Sales
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Avg. Sale Price
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2007
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11
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$228,345
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7
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$184,486
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2008
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16
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$215,241
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5
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$188,500
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Change
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5
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-$13,104
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-2
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$4,014
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Change%
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45.5%
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-5.7%
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-28.6%
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2.2%
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|
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|
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Summary of White Oaks Split Level Homes
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Under 25 Yrs Old
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25 Yrs and Older
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Sales
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Avg. Sale Price
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Sales
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Avg. Sale Price
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2007
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27
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$223,859
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39
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$179,251
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2008
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16
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$224,937
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28
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$190,148
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Change
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-11
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$1,078
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-11
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$10,897
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Change%
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-40.7%
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0.5%
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-28.2%
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6.1%
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|
|
|
|
|
|
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Summary of White Oaks Semi Detached Homes
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Under 25 Yrs Old
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25 Yrs and Older
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Sales
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Avg. Sale Price
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Sales
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Avg. Sale Price
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2007
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11
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$162,173
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33
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$148,870
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2008
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13
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$161,669
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33
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$148,818
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Change
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2
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-$504
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0
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-$52
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Change%
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18.2%
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-0.3%
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0.0%
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0.0%
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As you can see the sky hasn’t fallen, 2008 sale prices ended the year relatively close to where they started the year. Not great news if you purchased in the last year or so, hoping to make a quick buck, but certainly a much better performance than the stock market.
Home sellers in 2009 will have to keep these things in mind;
- It is no longer a seller’s market. Buyers have plenty of selection and will not feel the need to act quickly as they have in the past.
- There will be plenty of competition. Will your house be “listed” or will it be “for sale”? There’s a difference, pricing based on wishful thinking may get you listed but not likely sold.
- Houses will take longer on average to sell.
- Interest rates are still very low. Housing in London is affordable.
- And, if you are selling and buying, the seller of the house you are interested in is in the same market. If your price is down, theirs likely is too.
All the best to you in 2009!
If you are thinking of selling or know of some who is, I would be happy to provide a no-obligation competitive market analysis. Just give me call!
