Ask any Realtor how the market is right now and they will give you a one word answer...NUTS!!! Considering we are in a global economic slump and our largest and closest trading partner is still searching for the bottom you would think that the market would be a little slow. Not the case. In fact we are seeing some of the biggest numbers ever right now.
Since March we have seen a steady increase in the number of homes sold and July broke records with the most sold in any July ever in history.
Prices are still down from the record highs of July 2008 but only a little and right now prices are trending up as inventory shrinks. Along with record high sales numbers we are seeing very low listing numbers. This is creating a bit of a feeding frenzy as buyers are flocking to anything decent and well priced. It is not uncommon to see multiple offers soar above the asking price and deals that are subject laden will end up at the bottom of the pile.
This is exactly the same situation as a few years ago and all the so called "experts" who predicted a big crash and a slow climb out of the hole are having to re-write their predictions to accommodate the new data. I remember reading front page stories in November that were predicting the end of capitalism and suggesting that everyone stock up on supplies. Now, just eight months later, I find myself lining up to submit a clients offer for a two bedroom condo with six other Realtor's.
Like always the numbers are skewed a little and need to be examined closely in order to fully understand the market. While sales are definitely brisk not all segments are doing equally well. The best selling houses are still under $600,000 and for condos that number is even lower. Put a $700,000 condo on the market right now and it will most likely stay there for a while. List a $350,000 condo and you can expect that your Realtor will be fielding calls all day.
One large driving force is the low interest rates being offered. People can now take a rent cheque and use it as Mortgage payment and that has the first time buyer crowd very eager to jump in. Usually you would see a step up scenario but we are not seeing that at this time. Step up is when someone sells their home and then subsequently buys a larger, more expensive home using the equity they've earned from the sale to move up. What is happening now a lot is people are selling they're income properties and the first time buyers, the people who were renting are the ones buying them.
As the market starts to stabilize the step up scenario will come back but I think the real deals right now are to be found in the over $500,000 price point in condos and over $700,000 in houses as this is the inventory that's not moving and the sellers are typically more motivated.
If you have any questions or comments please give me a call 604.813.5130 or email me Barry@Connerty.ca