Another Stunning Day in Downtown Oakville

Hi,
I'm doing office duty today from 1 to 3 PM at the Royal LePage office at Lakeshore and Reynolds. Coming in to see a realtor with what ever real estate question you might have will provide you with a better insight to what is happening in the market in Real Time. Currently, the market is bouncing lightly along the bottom. Prices are at there lowest point in years, and the cost of borrowing money is so cheap it is hard to believe. The Fed has indicated that the Bank Rate is going to stay at this level until the second quarter of 2010. So you are safe. My mortgage rate which variable sits at 1.6%. Now I'm not going to get this rate for ever, but it sure feels good.

So if you're waiting for the perfect time to buy, and you are moving up, this is your opportunity to buy at the best prices. I'm seeing properties listed for $2.2 Million selling for $1.8 million. Not everyone is in this snack bracket, but you likely get the point. The more expensive the house, the larger the savings you're going to see.

In Oakville properties are now selling comfortably in the $500K to $1 Million range. There is limited activity above this price point. I'm thinking that prices between $1 million to $2 million will start to move this fall, and then in spring '10 the next level of homes will start moving. However, I just heard an interesting story about the butterfly effect, which is an analogy for lack of predictability for long term weather forecasting. In a nut shell, a butterfly might flap its wings in a particular direction in Africa causing the start of a Hurricane in Caribbean. It is an interesting concept, especially when you consider how many highly intelligent investors were caught flat footed during this stock market reversal.

So if you are interested in the current market, I'm happy to help you out, but long term forecasting in real estate is anyone's best guess. All we can do is use our knowledge, and provide an educated as well as thoughtful perspective.

Have a great day,
Nolan