On my Facebook feed there is a daily influx of articles about our current real estate market. Obviously, this comes as no surprise since this hot topic is being discussed pretty much everywhere you turn.
“Some experts feel the market is becoming more balanced, but it’s not a buyer’s market yet.” – The Toronto Star
The question is, what’s to come of the housing market for Canadians, and millennials specifically who have been on the short end of the homeownership stick?
According to an RBC report published on May 15, 2017:
– The preliminary verdict is in: Ontario’s Fair Housing Plan announced on April 20 appears to have had a noticeable rebalancing effect on that province’s market.
– Sellers came out of the woodwork in Ontario last month as new listings surged by 21.6% from April, the strongest increase on record.
– Despite sellers listing their properties in record numbers amid slower home resale activity (down 6.7% from March), Toronto-area prices continued to accelerate to a year-over-year rate of 31.7% in April.
– Persistent strength in Ontario prices drove the national index higher to 19.8% from 18.6% in March and 10.6% in April 2016.
– In the Vancouver area, on the other hand, price increases eased further to 11.4%, although this could be approaching a cyclical bottom given growing evidence that the restraining effects of earlier government measures are waning.
– Last month’s developments were consistent with our forecast of a moderation in home resales and price increases this year, although there is a fair degree of uncertainty about the impact of policy measures announced in April.
The Toronto Star says more people are starting to feel buyer’s remorse and they’re not as confident in buying as they were in April or March. In addition, more buyers are considering moving out of urban areas to suburban areas that are a far commute to their jobs in the city.
When we look to Vancouver there is still hope that the market may become a seller’s market for those dwelling in condos and apartments. As noted in Vancouver, sales slid by 25% in April. The Toronto Star reports,
“Our overall market is operating below the record-setting pace from a year ago and is in line with historical spring levels. It’s a different story in our condominium and townhome markets,” Jill Oudil, president of the Real Estate Board of Greater Vancouver, said Tuesday in a statement.
“Demand has been increasing for months and supply is not keeping pace. This dynamic is causing prices to increase and making multiple offer scenarios the norm.”
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