Here we are, already in June - almost half way through the year. The market is still steady but I do see it slowing slightly. Now this normally happens in the summer months so nothing really alarming yet. I have attached the link to the TREBB Market Watch below - so you can see for yourself:
Basically sales are down from April 2021.. ever so slightly .. so we went from 13,663 in April 2021 to 11,951 in May 2021.
When TRREB releases things like this - it sends the wrong picture to sellers. They see this and think the market is on fire. They are comparing it to May 2020 ... ummmm we were still technically just learning about Covid and the fear of it all was large.
So lets be clear - We are seeing less and less "holding" of offers as it appears the Buyers are no longer wanting to play that game and compete and many now that are trying that route, are finding them in a position to cancel and relist at a higher price to meet the sellers expectations or they are just changing the price UP. Either way, holding offers is a strategy that only works when it is priced extremely well and marketed correctly to the right sources to attain the end result hoped for. With so many tech companies in real estate now and agents that have SOLD prices on their websites, it is very easy for Buyers to shop around and get the previous sales etc., and they are more and more educated. Back in February and March this was the was more prevalent than now from what I am seeing. Once again, it goes back to working with someone who knows the local market and the agents in the area and having a strong marketing plan of attack.
Speaking of Buyers, I made a "tweet" recently about someone whose adult child was moving out the Country due to the high costs of living and housing and it exploded into a ton of emails from people between 25 and 40 who feel like because they stayed in school or waited, have missed the market. Although they have great downpayments saved, they feel they have no options but to look elsewhere to call home. This was a real eye opener for me. I had no idea how desperate many of these young educated Professionals felt. I actually felt for them. I have been posting their short stories on Twitter page... sometimes hearing others are in the same position and also bringing some attention to it to the media may help them come up with something to help First Time Home Buyers get into the market.
The issues with the high house prices is that it is great is you already own and you are buying and selling because it is all relative. But what about that young person looking to settle down, start a family etc .. how can many afford $1M plus the cost of car, taxes, children etc. Many are now looking to leave.
Canadians feel like home ownership is a sign of success. Those that cannot afford a home, often feel like they are missing out. There is nothing wrong with renting. People needs to live somewhere. Obviously it is better for them to own if they can. I think where we have failed them is that we have allowed to much Foreign and Investment buying to push the prices up so high .. and they have very little tax implications. Now we have basically priced our young people out of the market. With Elections coming, I think this issue needs to be addressed.
Is the market still strong - YES. Do I see it slowing down over the summer - YES Do I see a massive drop in prices - PROBABLY NOT
The fallout if the market was to crash would be a complete financial disaster and the Government wouldn't let that happen. I do see them slightly raising the interest rates ... before 2023 and trying to slow down this over heated market but I don't have a crystal ball. I wish I did. I would have bought 5 houses, 5 years ago. LOL
That's all for now. Looking forward to seeing some things re-open and getting Ontario moving again. It feels like forever. If you have any questions related to this or the market, please feel feel to reach out and ask away. I am always here to help or answer questions. I hope you have a great weekend and please remember if you know anyone thinking of buying or selling, I would love to assist them. It's what I do best. Newsletters - not so much ! ha ha
Hugs to everyone ! Stay safe and Happy JUNE !!!