Here are some of my comments on the recently released Landcor Report: Quarter 3, 2008 Sales Summary.
Well, statistics don’t lie! If we look at the Quarterly Sales Graph, though, it can be seen that since 1997 the sales have been going up and down from 20k units to a couple of peaks in ’05 and ’06, but generally settle back down to the 20k range.
I am expecting we will see a levelling out again of transactions in this range, as there is still a lot of demand and interest rates are still very reasonable.
Remember, too, there is always a seasonal adjustment. Before panicking we have to see what happens in the economy in Q1 & 2 ’09.
With interest rates going lower, renters will again be enticed into the market as the affordability improves and the cost of ownership vis a vis renting will decline. I think it is part of our communal psyche now to want to own, and we have all seen that ultimately the market will rebound and capital gains will be made. Price is not the only factor, it is the affordability. People will be looking to see how possible slightly higher payments for owning vs renting will be offset in the long term by capital gains.
Check the Landcor Report for yourself here:
Q3 2008 Sales Summary – The Market Correction Deepens
“The residential real estate market continues to deteriorate and we’ve seen the lowest number of Q3 sales in 5 years. What does this mean? It means that we should focus on the opportunities that are arising, including those for first time home buyers to make a sound investment at a much more reasonable price, and those for Lenders to tighten their borrowing standards to create a more sustainable and accountable financial sector.”
We’re grateful to Landcor data corporation for providing many of their compelling market reports free to their web site visitors.
Don’t run scared of the real estate market, we’re not…we’re doing more sales now than before…with over 30 years experience we’ve seen it all before! Call or email your local success story: www.downtownsuites.com.
