tag:blogger.com,1999:blog-19883195.post2295926155114081866..comments2008-07-16T19:21:10.225-04:00Andrew Hodgehttp://www.blogger.com/profile/17397194543301813256AHodgeRealtor@gmail.comBlogger2125tag:blogger.com,1999:blog-19883195.post-53474786410129326062006-11-03T11:39:16.961-05:002006-11-03T11:39:16.961-05:00Hi Angelo,<br /><br />It is true that the average home price for detached homes did drop significantly in the month of September (October 2006 numbers have not officially been released yet). However, believing that this is a signal of a bubble is to fall into the "statistics trap". There were only about 50 detached homes sold in each of the three districts that cover Richmond Hill. If there were a couple of million dollar sales last year and none this year that would greatly effect the average sale price. The shortage of higher priced housing sales may only be a reflection of which buyers were ready to buy and which were not. <br /><br />The reality is that for a specific type, size and style of home the prices have still gone up, but only a little. There is a possibility for decreased prices if a large majority of the home sellers, that are currently on the market, have to sell and do not just want to sell. For if they have to sell and they get close to their deadline then they will have to lower prices to stimulate activity and offers. <br /><br />So, I still believe that their is no "Bubble" however, we are seeing a slowdown or normalization of the real estate markets. That said we are not looking at having large increases in prices over the next few years and if sellers keep trying to get 5% or more, year over year then they may set themselves up for a future downfall.Andrew Hodgehttp://www.blogger.com/profile/17397194543301813256noreply@blogger.comtag:blogger.com,1999:blog-19883195.post-24411422462735033082006-11-03T11:05:00.000-05:002006-11-03T11:05:00.000-05:00Wow...Richmond Hill is hurting. Oct 2005 the average sales price of a detached was $503,314, Oct 2006 it is $436,960. That is a 13% drop not taking into account inflation! Who says there is no real estate bubble!Angelohttp://www.blogger.com/profile/06379822850667199873noreply@blogger.com