Today we have many questions such as What is happening in our real estate market?, Has the real Estate Market crashed? Would the prices further fall?
Well the honest answer is no one has a crystal ball and can predict the market. Only time will tell. However, it’s crucial to understand the difference between a crash and a market correction so that we can properly respond to a changing market.
While one is a significant loss in values due to “a fundamental failure in governance, policy or systems,” the other is merely a response to artificially inflated prices. At times correction can be a good thing in the long run as it brings the market back to a more balanced and sustainable condition.
Rising interest rates have been some of the main reasons for the overall slowdown in Canada’s housing market this year. While home prices across the country might continue to moderate, they’re still set to remain significantly higher than they were at the beginning of the COVID-19 in March 2020.
Now let’s have a look at the housing data for August!
The Toronto Regional Real Estate Board (TRREB) says August sales were down 34 per cent since last year, but up almost 15 per cent from July, as buyers returned to the market to take advantage of prices that eased from winter’s elevated levels.
The board further said that sales for the month amounted to 5,627 compared to 8,549 from last August. Nevertheless, the monthly data brought some hints that the market slide may be easing. Transactions were up 11% in August from the previous month. The ratio of sales to new listings rose, generally a sign that demand is starting to balance out supply.
Sales represented a higher share of new listings compared to the previous three months. If this trend continues, it could indicate some support for selling prices in the months ahead.
Many people may still be wondering exactly how they should move forward:
With the balance of power having dramatically shifted in their favour, buyers will be in a position to continue extracting price concessions from sellers for some time to come.
They would have more choices and opportunities to look at more properties. Furthermore, they can add the right terms and conditions to benefit themselves.
As a buyer the key is to be patient and transact when you believe you are getting a good value for your dollar. If you are not sure how to determine whether something is of true value, this is where it has never been more important to make sure you have the right real estate agent on your side. As a seller, you can actually mitigate your losses, if the value of your property went down so did it for the you are about to buy.
Overall, the message is that a correction is a temporary period in the market and we can make the most of such a situation, if we evaluate it correctly.
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