Here we are near the end of 2007 and I'm trying to figure out where the Quinte Real Estate market will be heading next year. In order to see the future I pulled out the old crystal ball from storage, dusted it off, tied the scarf onto my head, and focused intently on the the large orb (What? You thought I was going to pull the predictions out of a hat?)
As many who sell Belleville Ontario Real Estate know, 2007 has been a banner year in the Quinte Region. Total number of sales to October 31st was 3,334, up 11.5% over the same period in 2006 - not bad at all. Using year to date figures, the average residential price in the Quinte Real Estate region increased 7.8% to $196,830. Can this continue?
So what is going to happen in 2008? Well, according to all the "expert" opinions that I have read, 2008 should be another good year for Quinte Real Estate. Nationally, the number of sales is predicted to drop about 5% - somewhere around 500,000 sales. Now, contrary to what you might expect with a reduction in the number of sales, house prices are likely to rise another 5-6% next year. So that means that the average price of a Quinte Real Estate property should rise above $200,000 - somewhat inexpensive when compared to other regions of Ontario as well as larger urban centres in Canada.
Of course this is all dependent on economic fundamentals holding steady. This includes interest rates remaining low, strong employment, increasing incomes, and strong consumer confidence. The Bank of Canada just lowered it's overnight rate to 4.25% and if inflation continues to remain low then I feel we can expect further reductions in the new year especially if the US Federal Reserve continues to lower rates south of the border.
I feel all the signs are there for 2008 to be good year for the Quinte Real Estate market. Although the Ontario manufacturing base has been weakened by the strong Loonie resulting in the lost of several thousand jobs, the overall local economy should remain strong. Many local businesses are expanding while others, like Kellogg's, are setting up brand new plants. This should result in strong demand for Belleville Real Estate and increased Quinte Real Estate prices.
Ok. I'm going to take the scarf off and put the crystal ball back in the closet - done for another year. Should I be proven wrong come this time next year, I'll blame it on faulty batteries in the base of the ball or that scarf was tied on too tight.
Proudly selling Belleville Real Estate.