Some very good and true points about the market.

FROM THE GLOBE AND MAIL REAL ESTATE SECTION TODAY

While this article  reflects the Toronto and BC market, there area many points that are true about going to market in any city.

Myself and Stephanie  had an incredibly busy Nov and Dec with sales and listings .

We are well into our way into the early spring market that looks like it is approaching

fast and as experienced agents in the core areas we can advise you about how to best

market and sell your home.

 

Homes along Brunswick Avenue in Toronto.

Real estate observers in the Toronto area will be watching the market in January with special interest as they try to predict the movement of sales and prices in 2019.

January may be a barometer for how the rest of 2019 will go after a sputtering performance in 2018.

By the third week of January, agents say, the early spring sales will begin.

“The spring market starts much sooner than anyone expects,” says Jimmy Molloy, an agent with Chestnut Park Real Estate Ltd.

Mr. Molloy says listings are scarce in Toronto these days and supply is especially thin at the beginning of the year. Many homeowners don’t like to list in the winter because they believe their homes and gardens are at their best in the spring.

They may be right, he says, but sellers also face more competition when buds appear on the trees. He encourages sellers to list in late winter when buyers don’t have many properties to choose from.

“I won’t wait until May.”

Mr. Molloy says he becomes an amateur weather man in January and February, because he doesn’t want to bring a house onto the market in the middle of a blizzard. When he sees a clear stretch of weather, he encourages sellers to hang out a “for sale” sign.

“The market is always front-end loaded at the beginning of the year,” he says. “There’s a little bit of snow and you only have pictures of last summer – but you’re the only house.”

Mr. Molloy, who does most of his business in luxury neighbourhoods such as Yorkville, Forest Hill and Rosedale, says sellers seem to be optimistic – but they often are because homeowners tend to see the best in their own property.

“They feel very optimistic about the performance of their own home, as they should be.”

Looking ahead, Mr. Molloy believes 2019 will be a solid year for Toronto real estate, but growth will be moderate compared with the high-octane run-ups of 2017 and other recent years.

“Price appreciation will be closer to inflation,” Mr. Molloy says.

After a long stretch with interest rates barely above zero, higher borrowing costs are a drag on the market – in every segment of the market.

“Money was virtually free – it’s not free anymore.”

In December, sales in the Greater Toronto Area tumbled 22.5 per cent from the same month last year, according to the latest data from the Toronto Real Estate Board.

That number can be somewhat deceptive, as the market dynamics in December, 2017, were very different. Many buyers rushed to secure a deal in the last month of 2017 before new, tougher mortgage regulations came into effect in January of 2018.

Patrick Rocca, an agent with Bosley Real Estate Ltd., says house hunters hoping to snag a bargain were roaming around in December.

He was shocked to receive an offer $700,000 below asking for a property listed with an asking price of $2.9-million.

“It was ridiculous. It’s a buyer who’s thinking they’re going to get a steal,” he says.

Mr. Rocca says he normally signs back a counteroffer but in this case, it wasn’t worth doing even that.

New listings last month fell 31.5 per cent from December, 2017, when listings surged as some sellers tried to cash in.

The average price in the GTA crept up 2.1 per cent to $750,180 in December from $734,847 in the same month in 2017.

Mr. Rocca says his phone began buzzing with calls and e-mails on Jan. 2 as homeowners contacted him to say they were ready to list toward the end of January.

“I’m hoping it will be a good start to the year.”

He adds, however, that the sellers are moving now because of a change in lifestyle – not because they are trying to reap profits.

“I don’t see us going through any kind of craziness like 2017.”

He says some homeowners are reluctant to list because they are hoping for another surge in prices, but he says he believes the market has returned to a more normal, long-term rhythm.

“If you’re hanging on waiting for it to pop again, I don’t know when that’s going to happen.”

As for the psychology of buyers, some fear interest rates will continue to rise in early 2019. Others are holding out to see if prices will falter this year after last year’s slowdown in Toronto, Vancouver and other previously hot markets.

Mr. Rocca says some buyers are so anxious they are passing up properties that he considers good deals.

“It’s trying to convince buyers to buy. There are good opportunities right now and they aren’t seeing that.”

Looking further into the year, Mr. Rocca expects the biggest factor in the market will be the coming federal election. Since the election will likely take place in the fall, he expects the spring market to be much stronger.

“People tend to pause during an election year. The earlier part of the year will be better.”

So far Toronto-area real estate has remained relatively stable, without following the dramatic fall in the Vancouver area, where real estate sales plummeted 47 per cent in December from the same month in 2017.

Vancouver sales have been hammered partly because of a speculation and vacancy tax imposed by the provincial government. In 2018, the B.C. government raised the foreign-buyers tax to 20 per cent from 15 per cent and broadened the areas where it applies.

While Ontario doesn’t have a tax on vacant properties, other factors – including rising interest rates, tougher mortgage regulations and weaker demand from foreign buyers – weigh on both markets.

The Bank of Canada lifted rates three times in 2018, Bank of Montreal chief economist Douglas Porter points out, who is forecasting two more hikes of 25 basis points each in 2019.

Mr. Porter says the central bank’s previous rate increases are already having an outsized impact.

With the two big economic engines of housing and consumer spending “cooling before our eyes,” the economy is now heavily dependent on exports, business investment and infrastructure spending for growth in 2019, he adds.

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INTRODUCING PATRICIA CARISSE

After running a successful Photography Gallery/Café business with her husband Jean Marc Carisse and as a media strategist prior to that, Patricia is bringing those business skills and connections to a long held passion of hers- Real Estate. Patricia has strong business management and negotiation talents, cultivated from her previous careers that are perfectly suited for Ottawa’s real estate industry. Professionalism and business acumen are more necessary than ever in the complex Ottawa real estate market. She has a renowned reputation for communication, of listening to her clients needs and a desire to provide quality service and advice.

We are delighted to have her as part of our team.

Julie Teskey and Stephanie Cartwright

Patricia Carisse                                                                                                            Real Estate Sales Representative w/TESKEY/CARTWRIGHT Team                        REMAX Hallmark Realty Group, Brokerage independently owned and operated      344 O’connor St. Ottawa, ON.                                                                      613.878.1757                                                                                                                      613.563.1155

 

 

 

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CRAZY HOME SALES IN TO !

The Essentials
  • Address: 139 Christie St. on the cusp of Seaton Village and Christie pitts
  • lot 17.17 x 130
  • Listing price: $499,000
  • Time on the market: 6 days
  • Selling price: $988,018

This small, worn-out bungalow right near Christie Pits just sold for almost exactly double the asking price. Listed on the market at $499,000, it was snatched up for $988,018 just six days later. On paper that sounds nuts, but given property values in the area, this one was clearly priced to sell quickly.

 

69 Muriel – Toronto  Greektown

Ask $679,900.00

Sell: $1,050,000.

Lot   20 x 78 ft

It’s a sign of what little $1-million now buys in Toronto’s soaring housing market – a tear-down home on a skinny lot fetching a premium price in a neighbourhood known for its blue-collar roots.

Last week, the detached bungalow with an asking price of $679,900 in the Greektown neighbourhood on Toronto’s east side attracted a bidding war.

This tiny Toronto house sold for $370,000 over asking (The Globe and Mail)

The front yards in the area, near the major intersection of Danforth Avenue and Pape Avenue, are often taken up by parking pads barely large enough to hold a car. Some properties have a small patch of grass that residents on the Prairies would scoff at for being a poor excuse for a lawn.

A million-dollar property is far from luxury in Toronto.

The sellers of 69 Muriel Ave. have owned their home for a half-century. They listed their property on Jan. 23, and began accepting offers on Feb. 1. “Attention builders, contractors, renovators and envisioners,” the listing blared. “Don’t miss out on this chance to build a fabulous new home.” For good measure, the feature sheet added: “With front pad parking!”

On Feb. 2, after only 10 days on the market, the bungalow built in 1912 sold for an astonishing $1,050,000.

In 1966, the owners paid $10,000 for their modest abode. Adjusted for inflation, it works out to roughly $73,000 today.

The residence had an assessed value of $443,000 on Jan. 1, 2012, and $645,000 on Jan. 1, 2016, according to Municipal Property Assessment Corp.

Multiple bidders competed for the tear-down on a tiny lot measuring 20 feet wide by 78 feet deep. The winning bid emerged 54 per cent above the list price and caught industry observers by surprise – $370,100 higher than the asking price.

partly taken from the Globe and Mail business section.

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Fabulous Civic Hospital New Construction Home on Beautiful Lot

that can take your breath away!

“An openness to structural innovation and the elimination of ornament” defines a modernist style . This stunning home is just that. The modern and minimalist design of the entire property provides the best combination of luxury and exclusivity. There is an expressive use of quality finishes and materials. the location is private but in the sought after Civic Hospital /Sherwood Drive area.  A structure of beauty and design that is still livable for a family.

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Great Homes for Lucky Buyers that SOLD this week.

SOLD- THE GLEBE

410 Third

Tasteful top quality renovation that accents the original home, Bending the understated elegance of the original  home with a stylishly sophisticated sense of design and exquisite quality.

Priced at $1.395.000.

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kitchen 3rd

  SOLD IN THE GOLDEN TRIANGLE

38 GILMOUR ST. Huge space, 4 bedrooms and 3 bathrooms with a redone kitchen open to your main living area. Great location in the Triangle. Asking $649,900.00

38Gilmour-2

38Gilmour-15

SOLD IN HUNT CLUB PARK

2178 Johnston Rd

Lovely single family home backing onto bike/walking path located in the sought after neighbourhood of Hunt Club Park. This home offers great space both entertaining & family living. Asking $479,900.00

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SOLD – IN OLD OTTAWA SOUTH

9 Harvard

Charming old Ottawa south single near the river. great location and home for a family or couple just starting out. ASKING $679,000.00

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Thinking of a move!

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As a home owner it is always after a snow storm I ask myself  why I would be here in the winter! Why do I live in a home with rooms I visit occasionally! I also always seem to find that in the winter months that there appears to be so much more junk in my home. Where does it all come from! Winter blues? Maybe!  However, as part of the baby boom generation I spend a lot of time with clients of my generation and most at some point ask themselves the same questions . Sitting on large homes that are usually your largest tax free asset may not make sense.

Ottawa’s housing market has been on a terrific run, helped by low interest rates, low supply of good homes l have pushed up home values.  This may be a good time as any for the downsizing baby boomers to  look to add to their nest egg by cashing out on the real estate market. Financial advisers say the decision to sell the family home isn’t one that can be rushed and requires careful planning before you list your home for sale

As experienced real estate agents we can certainly do that . In some cases planning can take months , others mere weeks but hiring an agent who is skilled at helping you through the process of getting a home ready is hugely important not only in obtaining the price you desire but in the minimalizing the stress sometimes around getting a home ready for sale. We focus in on the important items and provide guidance.

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Last year I wrote a series of articles about some of the aspects of getting your home ready for sale

Here are the links

https://teskey.com/category/expert-advice/staging-and-getting-the-house-ready

 

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Below are the average sale prices in Ottawa since 1969 It has been an amazing run – some years better than others but a steady good news story for most  home owners. An 18 year run of increase prices sometimes in the double digits.

Last year 2015 saw another 1.7 increase in the average sale to bring the average house sale price in Ottawa to $367,632. 00

Of course many of the core areas are more in demand than the suburbs and the average  prices are much, much higher. Regardless a property needs to be priced correctly for what the market will bear and there are times in the last few years that the market has turned sluggish for sometimes 6 months. So that planning and keeping up to date on the market is an  important aspect for  the sale of your home.

1969 $25,652 10.0
1970 $26,532 3.4
1971 $27,808 4.8
1972 $30,576 10.0
1973 $38,305 25.3
1974 $46,661 21.8
1975 $49,633 6.4
1976 $54,623 10.1
1977 $57,032 4.4
1978 $59,134 3.7
1979 $61,896 4.7
1980 $62,748 1.4
1981 $64,896 3.4
1982 $71,080 9.5
1983 $86,245 21.3
1984 $102,084 18.4
1985 $107,306 5.1
1986 $111,643 4.0
1987 $119,612 7.1
1988 $128,434 7.4
1989 $137,455 7.0
1990 $141,438 2.9
1991 $143,361 1.4
1992  $143,868 0.4
1993 $148,129 3.0
1994 $147,543 -0.4
1995 $143,193 -2.9
1996 $140,534 -1.9
1997 $143,873 2.4
1998 $143,953 0.1
1999 $149,650 4.0
2000 $159,511 6.6
2001 $175,971 10.3
2002 $200,711 14.1
2003 $218,692 9.0
2004 $235,678 7.8
2005 $244,532 3.8
2006 $255,889 4.7
2007 $272,618 6.4
2008 $290,366 6.6
2009 $303,888 4.9
2010 $327,225 7.7
2011 $343,284 4.9
2012 $351,792 2.3
2013 $357,348 1.6
2014 $361,707 1.2

Enjoy your dreams.

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IN THE NEWS-City’s attempt to head off rezoning fights in Centretown fails

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The proposal for this pair of 27-storey condo towers for Centretown is at the centre of a legal battle about whether height limits can be included in community design plans. Mastercraft Starwood 

The city is stuck with a ruling that strict maximum heights for buildings can’t be locked into the plan for Centretown, a Superior Court judge has ruled.

With its plan for the downtown district, the City of Ottawa tried to get a little bit cute. Usually, how tall a building can be is written into the city’s zoning code, which is relatively easy to change. When the city updated its plan a couple of years ago for Centretown, the neighbourhood that’s seen the most battles over tall buildings lately, it tried to set maximum heights in Centretown’s “community design plan,” a broader and more powerful thing that’s more difficult to tweak.

Most fights over proposals for tall buildings come about when property owners say a community design plan seems to allow taller construction than some obsolete zoning bylaw. Locking buildings heights, in storeys and metres, into Centretown’s plan was supposed to forestall those fights and, thanks to a quirk of Ontario’s planning law, make the city some money off developers when their rezoning applications are successful.

No can do, ruled the Ontario Municipal Board, which can and does overturn city council decisions. Community design plans aren’t meant to be that specific, the board said. It’s one thing to set ranges or define what you mean by a low-rise or a high-rise building, but if you want maximum heights set for each piece of land in downtown Ottawa, you put them in the zoning.

That decision could in theory be overruled by a court. But there’s no legal question with the board’s decision that’s worth a court’s time, Justice Marc Labrosse decided after hearing the outline of the city’s challenge from city lawyer Tim Marc.

Labrosse denied the city “leave to appeal” — the opportunity to have the case heard in full before a panel of appeal judges.

The OMB gets its authority from provincial laws and it should only be overruled when it’s made an unreasonable decision, Labrosse wrote. “This (decision) was within the board’s jurisdiction and the reasonableness (or correctness) of the board’s decision is not open to serious debate,” the judge said.

Its adjudicator, Richard Makuch, considered all the evidence and did his job, Labrosse wrote. Marc had complained that Makuch didn’t give the city’s experts their due, but although Makuch didn’t wrestle deeply with the arguments they made when he wrote his own ruling, the judge found he clearly had heard them, and there’s no sign that Makuch misunderstood what they were saying.

If there’s a saving grace for the city — and others in Ontario that might want to copy Ottawa — Labrosse said the municipal board’s ruling isn’t total and sweeping. “The board’s decision is specific to these circumstances and not a broader statement of the law that relates to official plans,” he wrote.

But still, the city lost, which means its attempt to head off future tall-building fights is scotched and it has to pay the corporation that owns the building and parking lot at 267 O’Connor St., which wants to redevelop the property and won this court battle along the way, $9,000 in compensation for the court time.

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The business point of view (by some) of Lansdowne.

Found this in the Globe and Mail business section this morning – would love to know how the rest of the Glebe business community is doing.

Lansdowne has new game

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Tuesday, November 3, 2015-

A new football stadium for the CFL’s RedBlacks gave this Ottawa neighbourhood a rallying point in its reformation. High-end retail, restaurants, bars and a condo hope to complete the comeback

ADAM STANLEY
Special to The Globe and Mail

OTTAWA — Walking through Lansdowne Park on a crisp fall afternoon, you’d never know that in the years leading up to its recent $200-million renovation it used to be merely a slab of asphalt with a football stadium with one side that was crumbling.

Now, after an aggressive revitalization project that opened in November of 2014, Lansdowne is a hotbed for businesses and restaurants that drew 1.5 million visitors in its first year, according to numbers provided by the Ottawa Sports and Entertainment Group (OSEG), one of the key stakeholders of the project.

“People have had a very positive impression of the new stadium [Lansdowne is home to the North American Soccer League’s Ottawa Fury and the Canadian Football League’s playoff-bound Ottawa RedBlacks] and the retail and restaurant components,” explains Ottawa Mayor Jim Watson. “People keep coming back and experiencing something new.”

Originally developed as municipal fairgrounds in the 1860s, Lansdowne Park – a stretch of land on Bank Street adjacent to the Rideau Canal, about three kilometres from Parliament Hill – has gone through many iterations.

It was the home of the Ottawa SuperEx until 2010; bands such as U2, the Rolling Stones and David Bowie have performed on its grounds. It has also been the home of three CFL franchises – the aforementioned RedBlacks, the ill-fated Renegades (2001-05), and the Rough Riders (18761996).

When a proposal was brought to the table in the mid-2000s to revitalize Lansdowne Park once and for all, there were many skeptics. But the formal launch of the new Lansdowne in June of this year – as part of the Women’s World Cup of soccer – was met with much fanfare.

Mr. Watson says even those who were vehemently opposed to the project initially “have told me it’s turned out a lot better than they have anticipated.”

Lansdowne resides in a well-established neighbourhood in Ottawa called the Glebe, where the average income of its residents is higher-than-average.

According to an Ottawa Neighbourhood Study, the percentage of Glebe residents whose pretax annual income is greater than $125,000 is 7 per cent higher than Ottawa’s average.

That can help explain why such shops as Whole Foods and Sporting Life, long known for their well-to-do clientele, have decided to make Lansdowne home.

“I think with sophisticated retailers who operate all across North America, when they see a site with unique tendencies like this, they recognize they can be successful,” says Bernie Ashe, the chief executive officer of OSEG.

“Lansdowne will be an entertainment energy zone. It mixes public space, heritage buildings, sports stadiums, condos and restaurants.

“It’s just a cool place,” he continues.

And, Mr. Watson agrees.

The Mayor is in his second stint at the helm of Canada’s capital (he was also the Mayor from 1997 through 2000 before representing Ottawa WestNepean for the Ontario Liberal government from 2003 through 2010), and knows the new Lansdowne is something special.

“It’s really just a great place,” he says. “Before it was just acres of asphalt. Now, the lawn at the back [facing the Rideau Canal] is as big as the front lawn on Parliament Hill.”

But David Chernushenko, the city councillor for the ward where Lansdowne is located, told CBC Ottawa that it was too early to tell if the redevelopment has been a success. The city is expected to get the money it invested back over the next 40 years, but according to Mr. Chernushenko, it could be more than a decade before that starts coming in.

That said, some feel this past year has been just the tip of the iceberg for what Lansdowne can offer Ottawa’s residents and visitors.

“The area has gone through a major transformation,” explains Andrew Peck, the executive director of the Glebe Business Improvement Association (BIA).

“There’s an element of weariness having gone through so much change, but the reality is, everyone sees a light at the end of the tunnel and we’re at that light.”

The various amenities are what make tenants of Lansdowne Park so keen to be there, according to Jamie Boyce, the associate vicepresident of CBRE Canada’s Ottawa office.

Mr. Boyce and CBRE are leasing office spaces at Lansdowne, and he says there are already a number of tenants such as a private high school, a new technology company, a dentist and Football Canada.

“From an employee attraction and retention perspective, it’s a landmark location for the city.

Groups that I’ve been dealing with recognize the benefits of all the amenities on site and the open space and vibrancy,” he explains.

The lease rates are comparable to any new construction anywhere in the city. The buildings are attractive because taxes and costs at Lansdowne are twothirds that of those in downtown Ottawa, according to Mr. Boyce.

A full 95 per cent of the retail areas – managed by Trinity Developments – are now leased.

There is one more restaurant set to open in 2016 – the Craft Beer Market, a unique bistro chain from Western Canada – and the 300-unit condominium building on site, managed by Minto Group, will be ready next year.

Each retailer has a lease with Lansdowne Retail LP, and OSEG contracts Trinity to be the builder and site manager for each retail location, according to Mr. Ashe. Trinity is under contract from OSEG to collect rent and service and manage the buildings occupied by tenants of Lansdowne.

As the offices, condominiums and retail locations get filled through early 2016, the Lansdowne of the past won’t be forgotten – there is a collection of historical buildings still on site – but the Lansdowne of the future is now.

“Ottawa is a world-class capital in the best country on earth, and businesses see the city coming in to its own,” says Mr. Peck of the Glebe BIA. “The neighbourhood is stronger for [Lansdowne].

There’s more to do, there’s something for everybody.”

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Is it the right time to Sell!

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As is my usual habit, I awake at 5 -make a latte and sit down to read my papers, which awake me as they hit my front door- it is my morning ritual. I spend some time on the Globe’s business section- not because I really have a good grasp of the stock market, but I like to keep abreast of the business/economic markets which have their own take and advice on real estate.

This morning there was an article regarding homes, there are lots of these and depending on who you believe either the market is overinflated or is still continuing to grow.  Most of the info about markets are based around the Toronto or Vancouver markets so not as relevant to the Ottawa market.

However, information not to be ignored either by any means.

Part of the article today (again mostly about the TO and Vancouver market) had something I think is worth sharing .

I have been in the business a long time and have been through the up and down markets- interest rates of 21 %,  price and wage control economy’s as well as the boom high teck market and the last 20 years of good growth. I am often asked by older clients about when to sell. I thought this part of the article  summed it up nicely:

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Is it the right time to sell your house? Look at the historical data

part of an article from the Globe and Mail paper written by Robert Champion

For many older Canadians, their home is their single largest asset. As we age, many of us sell our homes and use the proceeds to help fund our retirement. Knowing that we will need to sell our homes at some future date, we look at the rising house prices and assume that they will continue to rise. We believe that we will benefit from deferring the decision to sell. That can be a huge mistake: If you choose not to sell your house in the near term and prices decline, a health or financial crisis could force you to sell at a much lower price.

For older homeowners, here is the key takeaway: The historical data shows that when house prices decline, it takes 10 years or more for them to recover. Younger homeowners have time on their side; they can afford to wait for prices to recover. Older homeowners may not have that luxury.

Buying and selling a home are the biggest financial decisions most of us are likely to make in our lifetimes. Our behavioural biases mean that we tend to make decisions based on recent data that fit our view of events, rather than incorporating long-term historical data. We base our decisions on the fact that house prices have risen significantly in recent years and ignore that fact that they declined by 30 per cent in the 1990s. It’s different this time, right!

Robert  Champion is vice-president of client services for Toronto-based Sprung Investment Management

I am not suggesting that prices are falling, just if you are thinking of a move,  planning a retirement and a new lifestyle you know what you have now and what your home is worth – no one has a crystal ball.

To quote my old friend Michael Provost

“Where do you want to be in 1 year ?- where do you want to be in  5 years?”

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Take a look at our historical data.

Ottawa Real Estate BoardResidential Resale Activity

1980 – 2014- Year Sale Price Change

Residential Resale Activity 1980 – Last Year (Chart) (1)

 

 

 

 

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