So once again numbers have changed. Of course they have, it's a free market.
The headlines are still proclaiming that the sky is falling and the market is crashing.
Where will prices settle?
That’s a good question.
When looking at the data, even with the drops we've seen over the last few months, I believe that real estate in many communities within the Hamilton Burlington area will remain relatively stable as we close out the year. Which should begin to provide Sellers with a smoother experience in the first half of 2023. Until then, as I've said over the last little while, if you don’t need to sell, hold. There are lots of ways to still make things happen.
And for those that have recently bought, don't panic. Real Estate isn't a short game and you're going to be much more than ok. Just ask anyone who bought before the 2017 slide how well they're doing now.
The Listing supply across the board is behaving normally despite the doom and gloom of the recession ahead.
Over the past 5 weeks, we’ve seen urban house supply plummet within the neighbourhood of 20%.
This is normal behaviour in the Summer months and should show you the strength and position of most Sellers.
If you're only ever waiting for the monthly stats to come out, you’d have missed this weekly trend.
In the past three weeks of upward or downward movement there's been a strong signal of what probably lies ahead.
Does this mean we’ll be heading back into a Seller’s market really soon?
Probably not. But what it does reaffirm is that most are level-headed property owners who don’t panic and sell because the favourite online realtor or media personality told you the sky is falling and somehow convinced the masses that they’re the only ones telling the truth.
But make no mistake, many buyers are still quite scared and are often firmly planted on the bench.
However, those buyers that are brave enough to be out there buying (and there are many) are being rewarded with opportunities galore. Especially for those that are still shopping with their earlier pre-approvals.
Once agin understanding that real estate is a long-term game, I’d have no problem being a buyer in this market as long as I’m not fully maxing out on my purchase.
Prudent buyers are leaving a bit of a buffer but enjoying much less competition and the ability to negotiate the purchase price. Some Buyers that are a little more cash-heavy are scooping up condo assignments left and right. We're seeing it everywhere but especially in the GTA.
The news has been relatively quiet this week after last week when BMO had captured the majority of the headlines.
All of the banks have released statements that range from 10% to 20% drops in CANADIAN real estate prices until mid-2023.
But remember, not all cities or areas react the same.
Not everywhere will see corrections at that level, despite this downturn being pretty aggressive compared to the highs of earlier this year.
Often we're seeing Buyers coming out looking for exceptional deals in the wrong places.
You may not be able to get every fully renovated home at much of a discount today.
But often you will have access to that less-than-perfect place. And sometimes you'll find a near perfect property in other communities.
Some homes that had no business trading at anywhere near or over a million and are now back down to earth. You can get that entry-level Rosedale starter home for between $600-$700k, which was impossible in Q1 and parts of Q2 of this year.
The good news is that Buyers are still buying, and Sellers are mostly holding unless they need to sell. The day trader mentality is slowly eroding, and the level-headed commentary (like ours) is now more the rule than the exception.
Inventory in ALL communities we’re tracking is pulling back and has been for more than the last 5 weeks.
So we’re in a pretty healthy state, considering the drama some conversations are bringing up.
In our team meeting this morning, for the first time in awhile, our buyer clients have been funded and ready to make moves to the right place. What we’re even seeing is some agents reaching out and asking for exclusives. Meaning just like some of ours, their buyers can’t find what they want on the MLS. Proving that supply isn’t always meeting Buyer demand, which is a refreshing change from May/June.
So in the spirit summer and keeping it light as we all try and enjoy the last few weeks of holidays, I’ll end with this;
When you read those articles that get fed to us on our smarphones, like those in the Globe and Mail or The Star, please understand that the story for your house may not reflect this broad statement about the entire Canadian market.
This type of market requires a lot more one-on-one, specialized attention, so please call/email/text, and we’ll talk through your specific situation.
Now let’s look at the numbers as a whole.