EDMONTON, Dec. 29 /CNW/ -
2009 started with a great deal of uncertainty with sales well below normal in the first quarter to achieving record high levels in the summer. Inventory dropped and prices stabilized, investors came back into the game and new housing started back on track. All in all, it was a year that gained considerable strength and finished strong injecting some much needed confidence into the markets that I'm confident will carry well into 2010.
There were four elements involved in our success this year; pent up demand, low interest rates, housing prices that finally made sense and it all added up to high levels of consumer confidence.
So how did all this affect average price? Well in the end average prices were lower than in the previous year, but that was what we expected. 2009 was about achieving balance and we did, the big question we all have now is whether this energy will carry over into 2010, and will prices increase or decrease?
As uncertain as the beginning of 2009 was, every effort was made to ensure it was successful. Now in 2010 we actually face some challenges.
The pent up demand will definitely subside, but it may be replaced by a rush to get ahead of any changes that might come out of Ottawa. There is some concern that our real estate market is too hot, and the finance minister has clearly indicated that he is prepared to step in and slow it down. This could mean reduced amortization periods, higher down payment requirements and higher interest rates, and for now, this will be the big story going into 2010.
Now there are already hints of an increase in interest rates in 2010 and that's great news for our economy, but it may be bad news for real estate. Those with already high payments will be affected by the added pressure, first time home buyers will have to be much stronger and this may ultimately slow demand. Overall I expect balanced sales in 2010, but these factors may create a push early on and a slowdown toward the end of the year...the opposite of what we saw in 2009.
I think product will be a bit of a story this year. With reduced inventory there may not be as much good product on the market as we've seen in 2008 and 2009 and this may have a negative effect on average prices. In the previous two years, buyers had the best selection they've ever had. Today they'll have to choose much more carefully. We're already seeing this with the numerous multiple offers in the last quarter of 2009 which was a symptom of few good properties being available and tight inventories. Overall expect average prices to stay fairly flat this year.
Rod Thompson, broker
President/Founder, SellerInvite.com (Edmonton)
780 994 9998 email@example.com
Rod Thompson is a licensed real estate broker in the province of Alberta with SellerInvite.com (Edmonton). The opinions, reviews, and predictions expressed in the newsletter are that of Rod Thompson and should not be used alone to make any critical financial or real estate related decisions.
We've had tremendous growth and success in 2009 with 74% of our business being referral business. This was a year of defining who we are and putting in place our systems that will allow us to continue to grow well beyond 2010. We truly believe 2010 will be a significant year for us with growth outside of Edmonton. We are a franchise company and hope to have a presence in every major market in Canada within two years.
Our formula is simple; fewer REALTORS(R) doing more business, in a more professional environment at a fair price to the consumer. Our roles are as consultants and educators giving sellers all the tools they need to make smart selling and buying decisions, and because of this our results have been industry leading.
Thank you for your business and thank you for referring your friends and family to us. As we grow, know that we are committed to improving every aspect of business so we can continue to take good care of you, as well as your family and friends.
Rod Thompson, broker
For further information: For further information: Rod Thompson, broker, President/Founder, SellerInvite.com (Edmonton), (780) 994-9998, firstname.lastname@example.org