The real estate scene is on the move thanks to falling interest rates and reduced mortgage costs.
Transactions were 7.7% higher in October than for the corresponding period last year, according to the latest Canadian Real Estate Association (CREA) figures.
The result suggests we can put aside any doubts that homebuyers would not respond to the total 1.25% reduction in the cash rate over the last three months.
Across the Canadian property market, agents are talking about the end of the two-year slump that has frustrated buyers and sellers alike.
CREA says a year-on-year increase of 8.5% in the number of listings between last June and last September has helped spark the market into life.
The sales-to-new listings ratio is now at a 16-month high nationwide.
There is a sober note, however. The number of new listings between September and October dipped 3.5% and total active listings were down 2.8%.
However, this decrease in supply may fortify prices, which is a great signal for owners considering whether it’s the right time to upgrade or downsize.
The average price of a home remains stable, according to the MLS Home Price Index.
It’s hovering around $716,800, the range it’s been all year.
More encouragingly, resale transactions hit the 520,000 mark in October, a level we enjoyed before the pandemic. Some regions are still struggling with sales volumes, however. They include Ontario, Quebec and New Brunswick.
The latest data points to the start of a national recovery in the next few months. CREA also said it expected the Reserve Bank of Canada to cut rates further.
Several developed economies suffering tough business conditions – as we are in Canada – are also cutting hard, most notably New Zealand.
If you’re considering upgrading your property in the next few months or downsizing, you should consider your strategy carefully.
Ideally, you should enter the market early, rather than wait for momentum to build. When that happens, buyers will have a wider choice of properties to purchase and a stronger negotiating position.
Owners who move swiftly and offer a well-presented property at a competitive price will find motivated buyers. So, if we can help you with your real estate needs, please do not hesitate to contact one of our agents.