Better Late Than Never - Our Spring Market Came and Went in January, February and March...
We began the year with Real Estate taking off early, as it had done in previous years. Inventory was down in Toronto, and we were in competitive multiple-offer bid nights for our Buyers. While some Real Estate continued to take off in certain asset classes and neighbourhoods, overall, our spring market saw an increase in inventory without an increase in sales. Last year, we finished the year with 65,000 transactions, the lowest number of sales in 27 years since 1996. While we had anticipated this would be the recovery year, with all the buzz of interest rate drops looming on the horizon, that hasn’t happened as expected. The U.S. economy is holding its rates, its economy is booming, and its inflation is up-ticking. The U.S. rate may not drop until next year. Hence, the Bank of Canada is holding our rates steady, and many homeowners and homebuyers are feeling the pinch. It has been a long haul with these interest rates.
The Bank of Canada is juggling a weakening economy that needs decreased interest rates, but they also don’t want to crush the Canadian dollar. If possible, they will delay reducing interest rates for as long as possible. Canadian homeowners need to hang on tight for another six months to a year or so, so they say.
Overall, we experienced successful bid nights for our Sellers for April. Their listings came out well-timed in early to mid-April, and they received multiple offers selling either at market value or slightly above market value. This success story is a beacon of hope in the current market conditions. Shortly after they sold, we noticed some failed bid nights. Timing is critical; some are an ear to the ground, and some are good luck on your side. Buyers have generally cooled. Initially, the market became heated with multiple offers and a lack of good inventory, and Buyers fatigued early this year. While numerous offers have cooled slightly, Sellers and Buyers are cautiously walking through this Spring Market. It’s a mixed bag out there—a hyper-micro market.
If you have any questions, give us a shout. We're not just here to provide you with market updates but also to help you understand the value of your property. We’re happy to provide your home with an updated valuation for financing and current market value. Knowing the value of your property can give you a sense of security in these uncertain times.
Cari and Paul