Area Real Estate Prices Holding

Despite a softening in sales during the second half of 2008, house prices in Canada and throughout the local real market are remaining relatively constant.
The year-end 12-month average residential price for properties sold through the MLS® (multiple listing service) of the Georgian Triangle Real Estate Board stood at $279,513. This represents a 3.3% decrease from the 12-month average price at the end of 2007. This decrease in the average MLS® sale price in our area is far more attributable to 2008's decreased sales activity especially at the upper end of the market which saw area sales for properties valued above $500,000 decline 30% in 2008.
As was stated in a recent press release issued by Royal LePage Canada and reported in the Wednesday January 7th issue of the Globe and Mail, the average home price declined nationally by just 1.1% in 2008. A further decrease of 3% is predicted for 2009 as we enter into more "balanced" market condtions.
Notwithstanding the fact that we are in uncertain economic times, demand for area properties throughout the Georgian Triangle remain strong. Buyers however are cautious, anticipating there will be a widespread decrease in prices with bargains to be had. Ultimately prices are set by what willing buyers are prepared to pay and much of this falls to obtaining, qualified and quantified real estate advice. In my next post I will recap last year's real estate results in greater detail.