The detached sector of housing is what really drove the market this year. CREB® reports, “February sales totaled 1,342 units, which is still 19 per cent below long-term averages, but an improvement over the past two years.” One really wonderful thing that happened is that the average time a property is on the market dropped to 2.4 months, which has helped ease downward pressure on pricing. This means sellers are selling their homes faster and for better prices. The benchmark price for a property was $501,900 in February.
CREB® president David P. Brown notes, “there seems to be a new sense of optimism these days. Some sellers are feeling upbeat about the changing landscape and the improved chances of selling their home. Other people are looking at the spring market with caution and wondering if we’re going to see a higher than expected surge of listings. While there’s less product on the market right now, sellers still need to be realistic with their pricing.”
With supply going down and prices stabilizing, CREB® believes the market is heading towards much more balanced conditions. This will be good for everyone: buyers, sellers, investors and renters. “The transition in the housing market appears to be underway,” said CREB® chief economist Ann-Marie Lure. “However, it is important to note that this change is primarily being driven by improvements in the detached market and stability in the labour market.”
The spring is always a very active time in the real estate market, so it will be the true test of how the market conditions are shaping up. With spring right around the corner, we anticipate more growth and further stabilization–assuming the economy holds.
We hope that our monthly housing summaries are helpful for you. If you want specific statistics you can check our CREB®’s website at www.creb.com. It is so important to stay informed on what is happening in the market, because it allows you to make strategic choices when you enter the market. As always, if you have other questions please feel free to contact us here at Team Ken Richter. We would love to partner with you.
Your Real Estate Professional,