February 2018. Is our Housing Market ON THE ROCKS?
No, but the numbers could suggest that, if we don’t know how to interpret them! Here’s what it looks like on the surface:
*Sales plunge by 35% compared to last February 2017.
*New Listings increased by 7% and TOTAL listings swelled by 147% vs 2017
*Average sale prices are down by 12% to $768K and on average, properties are taking almost TWICE as long to sell this year.
*Condo sales in the city are down by 30% but average prices in the downtown core, where most of condo sales take place, SOARED by 11% vs last year to $585K .
*Average sale price of a detached home in the city today runs at $1.3ML…and in the city core? a mere $2ML
*Average prices for a semi are now just under $1ML in the city, while running at around $1,235K in the city core.
So what does this all mean? Are the February 2018 stats harbingers of bad news? Not really. Here’s what it looks like when we drill down….
- February 2018 stats are up against CRAZY numbers from last spring…so we KNEW sales for the first half of this year would look dismal, by comparison
- While buyers have more choices than last year, and are taking more time to decide on purchases and sales, in the city, we STILL have a serious lack of supply and high demand. Multiple offers abound (there were 25 bids on a downtown condo last week, priced in the mid 4’s and sold for $650K!!)
- The 905 districts have more supply and more sluggish sales than in the city.
- Properly priced/listed homes in the city are selling quickly and above the ask, especially in the UNDER $2ML category.
- Lower average sale prices have heightened demand…not lessened and even with all the measures in place, new stress tests, higher interest rates, taxes on foreign buyers, the NATIONAL ARREARS rate on mortgages is at an historical ALL TIME LOW! Canadians have a very high debt ratio, but they ARE servicing their debt…65% of which, is mortgage debt.
- Major difference between this year and last year? Sellers are not getting LOTTERY PRICES for their homes….and that’s a good thing! Affordability is enhanced compared to last February.
So sit back and relax, knowing that your biggest asset is still in good financial shape and you will be fairly paid, should you decide to sell, and you will pay a fair market price should you decide to purchase this spring.
So, if you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect. I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.