Current Market Trends
Market Trends can be delineated as both major and minor. Generically, year to year, you have a Buyer’s Market, a Seller’s Market or an Even Market. Prices overall may be up or down depending on more inventory vs. less inventory and external factors will affect the trend – general economy, mortgage rates, employment figures, elections etc. Then throughout the year you will have the mini-market trends dependent on time of year, weather conditions and personal activities/holidays. January is typically slow as people recover from the holidays. February will see more listings, but is often weather dependent. The Spring brings lots of inventory but also sees prices being driven downward because of that increase in inventory. The summer slowdown is obvious – summer vacations, kids out of school, camp, cottage etc. September heats up again and through November the market will see more properties listed – of course depending on weather and mortgage rates. Then Christmas brings another slowdown, and the year begins again.
Our current market is seeing a general slowdown. Properties are not selling as fast as they have been in the past. Most listings are showing more days on the market before a firm deal is reached. Even in some sub-areas where homes have typically been on the market for maximum of 1-2 weeks, we are now seeing those properties sit on the market for months before selling. Prices are down, reaching levels we haven’t seen in 6 months. Some homes are being removed from the market with cancelled listings and the inventory is continuing to grow. In this current climate, the property must be perfectly priced and well-staged. This is why marketing becomes even more important to the sale of your home. Simply putting out a sign and listing your home on MLS is not enough. A strong internet presence is crucial to your marketing plan. The home must show well. Great pictures, slide show and virtual tour are a must. The description must be to the point – not boring and not embellished! Your Agent has to ‘work’ your listing.
Canadians are more soured on the economic outlook than ever and everyone is more cautious with their money, safeguarding their current investments. Mortgage rates remain low, but since they have been low for so long, they are no longer driving the market the way they have in the past. The Buyer simply does not have an incentive to rush a purchase. They are not feeling pressured in this slow market. They feel they have the ability to look at a property 2-3 times before making a purchase decision – and even if they lose that home, another one is available. And with so much inventory on the market, it becomes easier for the Buyer to compare one home to another. So bottom line – we are currently seeing a Buyer’s Market which means choosing the right Real Estate Agent to list your property becomes the most important step in the process.