Sunday, December 2, 2012

November 2012

Although sales volumes were off 28% year over year for November prices continue to hold with the average detached 2-storey  home selling for $803,000. Had I left in one sale that sold for over $9,000,000 the average price would have been $927,000, which is more in line with October '2012's $948,500.

The ultra luxury home market segment has performed very well this year and continues to impress with 27% more sales this year than during the first 10 months of 2011. There have been 336 homes/apts sell above $1,500,000 with 65 of those greater than $2,000,000 and 16 greater than $3,000,000.

We have been fortunate to see these numbers given the difficult global economy.

Financing remains low and looks like it will stay that way well into 2013. Home price growth however, has exceeded salary growth and it wouldn't take much of an increase in mortgage rates to force many of the highly levered owners to have to sell, and that may lead to a moderate correction in prices.