Real Estate Prices Continue to Slip

07/10/2004

The market last month, at least for my office, showed slightly better stats than September is use to delivering. It would appear that consumer confidence is cautious yet generally strong. With many Buyers attempting to beat the looming threat of higher interest rates, sales are still quite strong for the time of year, however prices continue to soften. Many new listings are coming on the market at or below market price and these are the listings that are selling the quickest. The Buyers are continuing to draw that line in the sand as our Sellers market continues to slips out of sight. Many Sellers that have had their homes listed for more than 90 days are beginning to choose between two different paths. The first is to simply take their home off the market and stay put for next couple of years. The second and more popular route is to reduce their home’s list price by five to ten percent. These Sellers are recognizing the shift in the market and making appropriate adjustments to give themselves an advantage over the competition. As more and more people reduce their prices to compete with similarly listed homes, stats from the Ottawa Real Estate Board, show a steady decline in average sale price. From the peak in May to a new Low in August the average sale price dropped approximately $10,000 or roughly 4%. Unfortunately, September stats have not been issued as of yet, but I have no doubt that they will show the downward slide has been perpetuated this past month. Bottom Line for those currently listed or those contemplating a move. Be realistic and listen to the pricing advice of your agent. Your price matters more now than ever. Thanks for listening. This is Rob Thompson saying, “Good Luck and Good Selling”! Rob Thompson has been helping families make the right real estate decisions since 1985 and continues to do so with his team of professional in the communities of the 416 and 31 corridors.

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