2007 Set Records Nation-Wide Records all Around
What’s in store for 2008?
The big news in the last week or so is the turmoil in the financial markets. Everybody who bought a house instead of stocks in the last few years should give themselves a pat on the back! 😉 Of course, the markets will correct, then get back on track. The big question is what’s in store for the economy this year. A closely related question is what will happen in the housing market?
As a quick review, 2007 set both volume and price records nationally and in the GTA. (Please follow the Market Watch link on the left to see the details.) The most important numbers are probably the 7% year-over-year price increase in the GTA, and the 12% increase in sales volume.
The increase in volume is a sign of a healthy market with solid supply. The price increase, while higher than the average income increase, is still reasonable – especially compared to the 20%-40% seen in some Western markets.
For 2008, the Canadian Real Estate Association is forecasting slower but solid growth – even after last week’s wild ride. The 3 most important factors will be stable consumer confidence, healthy employment, and affordable interest rates (which should continue to go down throughout the year). These factors, combined with stricter lending laws, will likely insulate us from the slide in the U.S. housing market.
Basically, the housing market is expected to stay quite strong. If you are waiting for a housing market correction before you buy, this probably won’t be the year! It might be best to buy in and start making those equity gains.
They mean more to us now than ever before! More than a third of our new business last year came to us through referrals, up from 20% in ’06. Our business plan has always been to work hard for our clients to build respect and friendships that will generate a lifeline of referrals to family and friends. It looks like that is really starting to bear fruit, and we want to thank everybody who has complimented us with a referral. The time we save by NOT having to prospect for new business is time better spent serving the needs of our referral clients. We are looking forward to another year of increasing referral business, and building with those clients the same kind of relationships that we have with so many of you. Thank you!
Baby Milberry – 4 is Enough!
Thanks to everybody for your warm wishes following the birth of our our first daughter (and 4th child). Marin is a real treat! We are enjoying (almost) every moment, and starting to look forward to the end of diapers….
As always, I look forward to speaking with you again soon. Have a great 2008!