Real Estate Market Analysis

Get that brain geared up for the ride. This one is a roller coaster to the sky!

Buyer's market, seller's market or balanced market, how do you know? Most information points to anything over 8 months active inventory is a buyer's market and anything under 6 is a seller's market. The grey area in the middle is boring ol' balanced. In a seller's market prices increase and in a buyer's market they decrease. In the lifeless balanced market they generally hold flat with moderate increases due to inflation and costs of selling.

Here in Waterloo Wellington we are holding our own versus the troubles being yelped about across the country. KW is showing the best of the three communities with 4.44 months of active inventory but there was a massive drop in the active listings in November as expired listings that did not sell came off the market. Guelph is up next with 6.18 months of active inventory and finally Cambridge with 6.88 months. Balanced market, sounds humdrum.

But wait, there's more....

To understand today's numbers lets put them into perspective. Last year KW was 2.22, Guelph was 3.33 and Cambridge was at 3.61 months inventory based upon solds versus active homes in the market for November 2007.

The real estate market is at a point now where it has reached such a height it has nowhere to go. This roller coaster ride has been a long one. Here we are perched at the top of a colossal hill looking back and wondering "Now what?"






Let's ride the balanced market for a bit. The foreboding drop makes balanced seem a little less mundane.



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