Canada's Real Estate market falling dramatically or just dramatic headlines?
House prices in Canada are falling. But looking simply at the headline numbers can be very misleading. At a risk of being a bit technical, we will note that the headline numbers reflect a current weighting for each city, which leads to a significant bias to the overall average price since dramatic changes in the volume of the sales in certain cities can notably influence the national average price. Take Vancouver. The close to 45% year-overyear fall in the number of homes sold in the city and the fact that Vancouver prices are much higher than the national average combined to make it look as though national home prices were falling sharply when, in fact, it was driven by fewer expensive homes being sold in Vancouver, as a fraction of the whole. The result: the national headline number is down by close to 6% (y/y) last month but if properly weighted, house prices fell by only 1%. Yes, prices are falling and they will continue to fall, but the headline numbers exaggerate the real weakness in the housing market.
Click here for the entire PDF article: CIBC World Markets report
What should you do if you are thinking of selling?
If you are considering selling your condo, call me. Everybody has a different situation and my primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision.
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