Metro Moncton is experiencing a very strange market right now. The laws of supply and demand seem to have gone on a holiday somewhere. Our sales volume is down and our inventory is way up. That should lead to lower prices but, not here. No, our average price last month was up 5% over June 2013. Go figure.
What we have seen is the average time on the market has increase significantly which is where the pressure is being relieved. So the sellers seem to be prepared to sit on their homes longer to get their price.
Something I don't understand is the hesitancy of first time buyers in a market such as this. Lots of inventory to choose from, most of it very good and the banks at still giving money away for 2-2.5%. When I say "giving away" I mean it. There are still quite a few of us that remember the 21% interest rates of the late 70's and early 80's. My wife and I were in University at the time but when we did buy our first place in 1986 it was still 14%. I think the best rate we ever had was 8%, so I think of 2% as free money.
So, if you are thinking of buying a house, don't sit around waiting. i don't think it is going to get any better than this.