2009 Peterborough Real Estate

After a slow start due to a weakened economy, house sales rebounded during the 2nd half of 2009 to finish the year stronger than many had anticipated. In fact, Peterborough and area enjoyed the best December sales since December 2006.

• Total sales for 2009 were 2823
• Total sales for 2008 were 2865 (only a 1 1/2 % decrease)

Average house prices remained relatively on par with the previous year. Government incentives combines with record low interest rates and improved consumer confidence fueled the housing recovery. The strong residential resale housing market was a key factor in our quick recovery.

Is This the Year to Buy or Sell?

I think that this might be a very good time for the folks that waited from last year for the market to bottom out and also the ones that are “just thinking” about it. There are a few reasons to jump into the real estate market early this year.

HST
Harmonized sales tax comes into effect the 1st of July 2010.
This will put Ontario sales tax on many items that were exempt under the old rules. Fees charged by Real estate agents, lawyers, and home inspector will all now be 8 % more. This is going to add to the total cost of selling or buying a home, I estimate about $1000. in the Peterborough market. But that is only if you buy a resale home. If you buy a new home even more money will be added to the bottom line as PST is now going to be added here as well.*

Interest Rates and Mortgage Terms
We have enjoyed record low interest rates for the last while. Just over a year ago we could get a zero down payment mortgage amortized over 40 years, now you must have 5 % down and the longest term is 35 years. The government has been hinting that it might let interest rates rise by the end of this year and there is also talk of shortening the amortization term and raising the down payment portion. This could cause a lot of first time home buyers to put off buying their first home.

I will be running a first time home buyers workshop in the very near future. If you or someone you know might be interested in learning more about the home buying process just give me a call or send me an email at jfyffe@sutton.com.