January Monthly Real Estate Stats

It seems everyone has the same question.

Where is this market going?

Waterloo Region MLS stats are out for January 2009. The market is adjusting, make no mistake. Another month of sales decreases for the agents. Nearly 1/3 less homes SOLD means money is not flowing into the brokerages. Expect to see less agents in 2009.

Average prices are starting to drop, as we have been expecting, with a 5% drop versus January of last year. Expect this to continue.

If you are currently selling your home, note that prices are dropping. If you are thinking of selling, find an appraiser that uses a forecasting tool and not just past history. When the appraiser tells you that your house is worth less than you might have anticipated, don't be surprised.

If your home was worth $300,000 last year, today it is only worth $285,000. Interestingly if you SOLD last January with an agent at $300,000 you would have ended up with today's lower value ($300,000- 5% commission = $285,000). Today if you SOLD that same house with an agent you would end up with $270,750 ($285,000 - 5% commission). So now the market has taken away 5% and the agent has taken away 5% and you are left with a $30,000 hole in your pocket.

Don't worry though. According to this video, in Ontario we have an increase in affordability. That should help!


Is it all doom and gloom? I couldn't do that to you. 1st quarter 2009 PropertyGuys.com Waterloo Wellington is up 11% for SOLDS year over year.