Acton is a buyers' housing market     November 3, 2011

    Rising variable interest rates and cooler weather helped turn the Acton housing market from a balanced one, where buyers and sellers are equal, back to a buyers' market.

    While the September/ October sales numbers are not yet available for the Acton area, Steve Tancoo, an Acton Re/max real estate broker said the latest figures show the market has slowed down, as it does in the fall. "A little bit (of the market change) is seasonal - it's weather dependent - as soon as it gets cold we don't get as many buyers, and they (Bank of Canada) started raising interest rates as well, so that's probably the biggest factor," Tancoo said on Friday.

    In August, there were 32 residential listings in Acton through the TorontoMLS system, and 15 of them sold for an average of 98 per cent of asking price. The average price in August was $328,000, and the average house was on the market for 33 days. Compared to the first seven months of 2011, listings were up 25 per cent and the average selling price jumped by six per cent year-over-year.

    Tancoo said there are more houses priced under $300,000 on the market at this time, but they're not selling because the market has slowed down. He said houses in Acton East, north and south of Highway 7, are selling because they are less than 10 years old and don't need major repairs. "The houses listed between $400,000 and $500,000 do sell, but they take a little longer to sell...the ones listed at $350,000 to $360,000 sell pretty quick."

    Tancoo said Acton housing sales are being driven by low mortgage rates - five-year mortgages are avaiable at 3.5 per cent - and that will keep prices stable over the winter until the markets heat up in the spring. He said it is normal to have 25 properties on the market, but there were 32 in August.

    "The sales to listing ratio was 47.2 per cent, but a lot of listings coming on aren't selling, so the sales to listing ratio will be below 40 per cent this month...so we're shifting to a buyer's market," Tancoo said, adding that instead of sellers getting 98 per cent of their asking price, 97 per cent is more likely.

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