To our dear clients, friends, and family,
We hope you’re having a wonderful end of summer. This year has been especially busy for us, but we still found time to enjoy our beautiful beaches, parks and patios. On the real estate front, we’ve experienced some significant fluctuations over the past two years, but it seems our market is stabilizing once again, and buyers are adjusting to the new “normal”.
Supply is our main concern this fall. Inventory over the last three months has helped pull our market out of its downward spiral. Even in the face of rapidly increasing borrowing costs, our home prices are plateauing, held up by demand and lack of supply. This is especially evident in high demand neighbourhoods, where homebuyers plan to put down roots. Supply in September was at a two-decade low, and in October it was at a one decade low!
The market correction impacted detached homes the hardest, with the average detached home down 11% from this time last year. The average semi is only down 6.2%, and the average townhome is down 3.9%. This is a unique time for condo owners, since their homes are still up 1.8% from this time last year, hopefully allowing some condo owners to move up the property ladder and support prices in the higher-end of our market.
Over the past 7-8 months, it was only natural for buyers, sellers, and investors to pull the breaks on their plans to buy and sell while they wait for the market to adjust. In previous months, volatile prices and low supply prevented many homeowners from making the jump from one home to another. As more homeowners realize we are currently in a price plateau, more of them will take the opportunity to upsize or downsize.
Wishing you all the best!
Christo and Janette
