Timing the market can be tricky. Similar to the stock market, it’s difficult to predict where the absolute top and absolute bottom of the housing market is. However, there are some key indicators that can provide insight to those on the fence wondering if it’s the right time to sell. One of best indicators is inventory. Real estate is all about supply and demand. We still have some pent up demand from the crazy Spring market last year. There were a lot of buyers that were sidelined by the unprecedented bidding wars and record prices in the region. The market still continues to carry strong demand, despite the new mortgage rules that were put in place and the increase in interest rates. The key is to get ahead of the typical inventory dump that happens in the Spring. With stats like these, there will certainly be sellers that will get off the fence and into the market. The faster you get ahead of the inventory push, the more likely you’ll get top dollar for your home.
Below is an article from CBC that echoes a lot of what we’ve been saying.
Housing prices continue to rise even though the number of sales has slowed, said Kitchener-Waterloo Association of Realtors president Tony Schmidt.
“We continue to see multiple offers on properties putting upward pressure on prices,” he said in a news release with January’s sale numbers.
In terms of sales, if you don’t count the past two years where the market was hot, Schmidt said it was “a very typical January.”
The follow are sales figures compared to those in January 2017:
- 149 detached homes were sold last month, down from 194.
- 70 condo units, down from 79.
- 27 semi-detached homes, down from 32.
- 22 freehold townhouses, up from 20.
The average sale price of all residential properties in January rose nine per cent to $458,750, compared to January 2017, when the average sale price was $421,104.
Schmidt noted tougher mortgage rules came into play on Jan. 1 this year, which has “sidelined some homebuyers.”
But the rise in prices is largely due to so few homes going up for sale.
“The reality is we’re still experiencing more demand than supply right now,” Schmidt said.