Royal LePage - Your Community Realty, Independently Owned and Operated, (905) 731-2000  Jim Reid, Broker, (905) 731-2000

MICRO - NEWSLETTER - OCTOBER A 2006  "MARKET HAS CHANGED!" "MARKET OUTLOOK" - October - 2006 My recent analysis of GTA and local real estate statistics indicate an end to this affluent ten year growth market. Although the real estate board and competitors have been selectively publicizing apparently positive data, my clients deserve to see the real picture. Yes, the GTA average selling price is up 4.9% YTD or 3.2% Sept.-to-Sept. Unit sales are down 9.6% in Sept. and units fell below last year’s monthly sales in 5 of the last 6 month’s.Lest we forget, prices rose 9.4% in 2002, 6.5% in 2003, and 7.6% in 2004 and 6.6% in 2005. We have been in a price recession for 4 years now. Also, this year will not match last year’s 84,145 unit sales, so we have begun the depression market.As this market evolves, there will be several months of mixed signals. For example, unit sales were down 3-4% in September for the $300-500k markets, up 1.3% in the $500-750k range and down 14% in the $750-1 million range and up 11% in the $1-1.5 million market. Local community markets can vary significantly from the total GTA. YTD GTA "Sales vs. Listings" slipped to 49.5% by Sept., but Richmond Hill’s N04 area is already down to 39.3%! It is a "Buyers Market".This new market will require innovative buying and selling strategies and marketing techniques. For truly superior real estate services call Jim to-day!   "Market Has Changed!" Fewer Buyers in Market!   It really concerns me that some of my neighbors suffered through long, stressful and costly listing experiences after they listed their homes for sale in this "Buyer’s Market".Already in 2006, four properties took over 100 days to sell, and then the Buyers accepted 10-13% price reductions! My research revealed that on average the other 18 realtors who sold properties in Heritage Estates this year took 57 days to sell. Also, on average they were able to get only 94.4% of the list price. My personal sales on average in Heritage Estates took only 21 days to sell. This is a month faster than the other 18 competitors’ average and three months faster than those long listings.Even more significant is that my Vendors averaged 97.6% of their list price. This represents on average close to $18,000 more in the pockets of my clients!   There are many reasons why my performance statistics in Heritage Estates and the Mill Pond area are so much better than average. Perhaps I am just "luckier" than others, but maybe my stronger business experience and marketing acumen also help. Perhaps my honesty and integrity play a part.   In my corporate career, I often had to create new marketing strategies. This year, the marketing programmes I employed were subtly adapted to the emerging "Buyers’ Market". My advertising and promotional activities concentrated on this new mind-set.Few realtors have this kind of expertise. They don’t have two university degrees in business and over 25 years in consumer marketing.The new real estate market will see average selling times and list price discounts going up and up. You don’t need to be part of this! The new market requires you to look at buying and selling from different perspectives. Vendors need to understand the advantages they bring to the market. Buyers need to learn to discern the exceptional values out there. When you choose your realtor, you need someone who doesn’t only recognize that the market has changed&ldots; you need someone who knows how to creatively take advantage of the excellent opportunities ahead.Make sure you at least call Jim Reid before you make your final decision!          Office: (905) 731-2000