top of page

Selling? The Q1 Gravy Train may have been short-lived.

With sales dropping 13% and the number of new listings dwindling for April 2021, it seems like the housing market is showing the first signs of cooling. Here's what's happening that may cause the market to stall:

Some areas are getting more love than others which causes a shift in price points. This shift instigates buyers to move further away from the core.

Sellers are listing their homes too close to the most recently sold price and still believe that holding offers will drive up the selling price of their home even more. Buyers are getting hip to the game. They're sitting back, waiting for after the offer date to figure out their buying decisions.

Buyers are worried about being outbid when waiting for the offer presentation date instead of looking at listings without an offer presentation date to improve their chances.

When the emergency lockdown gets lifted, the spring market might take off. More listing, more options; the market could swing in favour of buyers. I always say Real Estate is all about timing. Sellers should be aware that they might not get the "premium-over-the-market" price they've seen in the first quarter of 2021. The market value is still up a fair bit from last year. The gravy train from January to the end of March might have been short-lived.

A lot of buyer confusion and fatigue has settled into the market. For several months, low-ball pricing lured buyers into multiple offers. Buyers could only attend 15-30-minute showings submitted many purchase offers, often outbid, rinse repeat, the demands were too much. As a result, we see buyers sitting back on the sidelines, waiting for the market to balance out.

KEY UPCOMING EVENTS:

Canada's proposed mortgage stress test is getting more conservative. The Office of the Superintendent of Financial Institutions (OSFI) has announced that borrowers may have to prove they can pay an interest rate of 5.25%. That'd be an increase of 0.46% starting June 1st if this comes into effect.

STAT FACT:

The average selling price for a detached home ($1,387,629) and a townhome ($857,574) are both down from last month, while the semi-detached ($1,068,923) and the condominium ($691,791) are both slightly up from last month.

Wondering what your home is worth? Give me a call at 647-300-7959.





44 views0 comments

Recent Posts

See All

Comments


bottom of page