"Based on a sales-to-new listings ratio of between 40 to 60 percent, just over half of local markets in Canada were balanced in November, while a third of markets qualified as sellers’ markets" according to the Canadian Real Estate Associations recent Real Estate Market update broadcast. This means if you are waiting and watching the market to determine the best time to buy, you may want to stop seeking and make a decision now in order to avoid a potentially higher price point in the spring. Less suppy and more demand usually pushes pricing higher and/or offers less selection to choose from. You may want to ask yourself what you are waiting for ~ although we do not know the future, we do use recent and current statistics to determine trends as well as to get a snapshot of where the market is at. Where does it seem to be going? What is it exactly that you are hestitating for? If it is just the hope of a better deal, a bargain, a better offering, perhaps it could go the exact opposite way. Just something to consider if you are poised to buy but not quite sure when to do it. Armed with present day information, you can at least make educated guesses based on the here and now.
Supply and demand affects all business and sales. If there is less for sale or less Inventory of houses (Supply) and more Buyers out there wanting to make a purchase (Demand) then this is a benefit to the Sellers, as there are many people wanting to make a move to buy a property and less choice. Each property has a better chance of being sold sooner. It is known as a Seller's market. If there is less demand and lots of inventory available, this means the Buyer has much more choice and may keep seeking and considering as there are lots of options to choose from...and they may be able to bargain better with those Sellers who are more anxious to sell. That situation is as a Buyer's Market. It is no different than the cost of an apple in the grocery store when they are off season vs. when they are in high abundance and there has been no fruiit blight.
Read the bullet points below which give you a highlight of the market activity for Canada overall. You can also read the detailed analaysis at the CREA link also provided.
Canadian home sales edge higher in November
OTTAWA - December 15, 2011 - According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity rose slightly in November 2011 from the previous month.
- Sales activity rose slightly (+0.5 per cent) from October to November on a seasonally adjusted basis.
- Year-to-date sales remained in line with the 10 year average, but pulled further ahead of last year’s levels.
- The number of newly listed homes was down 3.4 per cent from October to November.
- The national housing market remains balanced, but is edging closer to seller’s market territory.
- The national average price posted a 4.6 per cent year-over-year gain in November, the smallest increase since January.
Read the full statistical analysis here: