While the Pelham real estate market generally follows the trends of the GTA market it is not subject to the same extremes of peaks and valleys. Last week Canwest News Service reported that Toronto home resale prices “plunged” 13 per cent in October from a year earlier and are now 1% lower than two years ago. In contrast, Pelham the average price of re-sale homes in Pelham fell by 2.2% in October 2008 compared to October 2007 and is just .4 % below October 2006.
The average price of re-sale homes in Pelham in October 2008 was $294,264 according to the MLS Statistics of the Niagara Association of REALTORS. This figure is 16.6% lower than the Greater Toronto Area average of $352,974 but substantially higher (+41.2%) than the Niagara Regional average of $212,170.
It is no secret that the real estate market is entering into a period of economic slowdown. The Canadian Real Estate Association (CREA) already reported back in June that Canadian home prices had fallen for the first time since January, 1999. In fact, the average year to date unit sales in Pelham has been on the decline since April 2008.
So we are entering into the slowdown side of the business cycle – this is nothing new in the history of economic fluctuations. However, the word on the street seems to be that this one is worse than anything that we have faced in our lifetime. I guess this depends on how old you are, how good your memory is and how much you read the Toronto media.