November Market Report

    Rush of Buyers

    The new high ratio lending rules requiring hopeful mortgagees to qualify at 4.64% instead of the lending rate; caused a rush of sales in October that spilled in November. First time buyers pushing to find their before their purchasing power eroded up to 30% fueled a flurry of sales in the sub $450000 markets citywide and in the detached sector in particular. This burst of sales led to more sales in the coming weeks as Octobers $400000 sellers became early Novembers $500000-650000 buyers. This short intense burst led to a year or year increase of 15.61% in sales in October and November numbers are trending that way. But what about price? City Centre and West zones saw boosts of 11% and 8% for the average home over September. This increase was spurred by the burst of $500000-600000 mentioned earlier who look to settle near the cities core. Wheres SW, NE and NW communities head par or saw slight increases or decreases. NE and far east prices. The most surprising stat was new SE homes dropped 12% average. That stat is purely do the high volume of starter homes selling compared to higher end inventory.

    What does it mean?
    The surge of buyers coupled with a lower than expected amount of new listings in October (12.3% less year over year); removed the top quality and above average listings in the majority of the cities sub markets, particularly in the under $450000 detached. Lowering the total residential inventory to 5427 down from the typical 6000+ of this year. November has followed the yearly trend of fewer home starts and resell listings, keeping the supply in check with lower demand for housing. As long as there is not a spike in listings price will hold steady with a slight downtrend rooted in weak inventory and provincial economic conditions. Overall the stats point to balanced market conditions.

     If you have any questions about what is happening in your market feel free to contact me anytime.

    Cheers

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