APRIL NEWSLETTER
March numbers are in and we are staring to see the beginnings of slowing market.
Sale units for all home types were down 22% from last year, still prices are up 13% from last March.
On the ground and not fully shown in the market stats we are seeing less showings, less offers on all home types. Where we would see 10-15 offers in Jan/Feb we are seeing 1-5 now.
Homes that are staged, presented and photographed well are moving well. The ones with poor presentation are getting less showings and thus offers.
Overall buyer demand has calmed and most investors are on the sidelines.
This doesn’t mean prices are falling. Yet.
As we get into May/June I suspect the slowdown will continue and when we will compare the sales numbers this year to the really high May/June 2021 numbers the headlines in the news will read that we are down year over year, by a fairly big amount because we had record setting numbers last year.
The negative headlines along with higher interest rates (another hike coming mid April) and the usual standard slowing of the market in the summer months will most likely cause inventory to push up. With inventory increasing and demand calming we should see some opportunities for buyers looking to buy with less competition and thus at softer prices.
For prices to drop drastically we would need to see inventory soar to 4-5 times what we have now. We currently have just over 1 month worth of inventory available for sale before we sell out. A balanced market has 4/5 months worth of inventory. So you can see we are quite a ways away from it becoming a buyers market. Still even in this roller coaster market value can be had if buyer is patient and they focus on a area and type of home they want and are ready to move when they find it. I suspect some sellers will get caught between buying in a busy market and selling as it slows which could cause problems for them and opportunity for some buyers.
As always message me with your questions or comments.
All charts via Realosophy.com
Have a great April! #torontorealestatemarket #realosophyrealty