Well we haven't seen this type of normal for a long time. The actual Volume may not be down but the sea of red ink on so many price adjusted listings probably means we are not doing our home work to reflect a changing market but as sales are still happening it is just a small softening. There was a shift and I admit that I could feel the change in September 2011 as the buyers retreated from new listings instead of lining up at the door. And except on deliberately underpriced product, designed to create a bidding war, are now only seeing a modest turn-out. I remind myself to look at the sales over a 3 year trend so as not to be caught in an abnormallity that may have happened as a blip when a certain supply was small. The prediction of even lower interest rates (B.M.O. offer a 5 year fixed mortgage at 2.99%) will certainly help with affordability but may keep some buyers from jumping in thinking they may even get lower. This will only be for a short period but the issue remains a need for more supply at the starter level, a level even the builders have ignored for quite some time. Also needed is more Young Senior Product and housing designed to create shared arrangements.
The Ontario Government has just released the set of new guidelines for secondary suites that will make adding a self contained unit within a unit to rent out safer, and easier to have more affordable units in Ontario.
In my travels I have notices Gander and Grandfalls-Windsor, NL and in Alberta - Calgary, Canmore, Spruce Grove the specialty is high ranch single family homes set up from the very beginning as homes that have a separate rental, income producing unit . This makes sense for all age groups from the first time buyer being able to afford to purchase to the senior who wants to live in a more modest apartment while not leaving the neighbourhood they have lived in for many years or passing on the home to a family member which serves as an added security for a newly singled/widowed parent or grandparent. C.M.H.C. demonstrated this concept about 30 years ago at one of the major homes shows and the idea has yet to be fully incorporated into the Ontario housing strategy.
All Reporting Agencies predict modest numbers in sales growth and price increases throughout Canada - Ottawa (especially with focus on government cut-backs) inclusive.
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